UK shale firms boosted by trespass law change report
Shares in UK shale gas explorers rose today as the government indicated
the Queen’s Speech would include changes to the trespass law to make
exploration easier.
According to the BBC, shale firms will be
able to drill horizontally without the need for landowner approval,
though they will still need to get planning permission while landowners
will also get compensation.
Fracking or hydraulic fracturing
involves the use of horizontal wells and high-pressure water, sand and
chemicals to release hydrocarbons trapped in shale rock formations.
The
US has seen its oil and gas industry enjoy a huge resurgence due to the
use of fracking and horizontal drilling techniques and the UK
government is keen for Britain to match this success.
Critics say
it can cause earthquakes, contaminate the water supply and blight the
countryside. Sites earmarked for drilling have already witnessed
protests and the government was said to be concerned that anti-fracking
groups would use trespass laws to block exploration.
A spokesman
for PM David Cameron told the BBC: "Fracking is something that is very
new, certainly in this country, which is why we are looking to see
whether there are particular obstacles to the test drilling."
The UK is said to have enough shale gas to fuel the country for 40 years.
Igas Energy (LON:IGAS),
which has interests in the East Midlands, North West and elsewhere, saw
its shares rise 10% today to 135.9p, while partner Egdon Resources
(LON:EDR) rose 6% to 21.8p.
Dart Energy, another UK shale explorer, is set to list on AIM on 12 May.
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