(MENAFN- ProactiveInvestors - UK) A greenlight for fracking in the UK provided a long awaited lift for two small cap stocks.
IGas Energy Plc (LON:IGAS) and Egdon Resources (LON:EDR), which are among few listed companies with a piece of Britain's promised shale gas boom, rallied 25% and 35% this week.
The decision by North Yorkshire County Council to allow private equity backed Third Energy to conduct fracking at a well in the Ryedale area is the first planning approval for the controversial well engineering process for five years.
Investors are hoping it marks a turning point, and that much needed appraisal work can now get going.
Experts say between twenty and thirty wells would likely be needed to properly test and confirm what could be a huge opportunity. Only then will a concrete assessment of UK shale's economics be possible.
Whilst fracking was the week's big story, in terms of the cross-over into the mainstream, back on AIM the standout was Westminster Group PLC (LON:WSG) which soared nearly 200% at one point.
The security firm looks set to materially expand its airport services operation, after receiving a letter of intent from a Middle East airport authority for a long term security contract that could be worth 30mln a year.
For context, after this week's rally Westminster Group share price values the group at just 8.4mln.
An injection of funds for Nevada metal projects helped Sunrise Resources Plc (LON:SRES) to be another sizeable riser, as it climbed about 40% on Thursday.
UK Oil & Gas (LON:UKOG) raising 4mln in an equity funding placing didn't have the same kind of impact - i.e. like most placing news it sent the price of existing shares lower as it dropped about 9%.
UKOG, one of the main companies behind the Horse Hill oil project near Gatwick, said the new cash would support its investments in new Weald Basin and southern England.
On Monday, Sovereign Mines of Africa (LON:SMA) ditched more than 20% after the Republic of Guinea-focused mining junior said had been unable to find a partner to contribute towards the cost of a definitive feasibility study for the Mandiana gold project.
As a result the value of the company's exploration assets were written down by 1.29mln. And with a current share price of 0.23p the whole group is valued at a shade over 2mln.
Investors in struggling Egypt oil producer Circle Oil Plc (LON:COP)received some respite, with the share rising 17% on Friday, as the group's main creditor - the International Finance Corporation - extended a review of its reserve based lending until June 24.
Back in March, Circle effectively put the company up for sale amid the squeeze on its financial position, and last week the company warned that the value of indicative proposals had suggested there wouldn't be anything left for shareholders.
While on the subject of debt deals, it is worth noting that the next trading day after today - next Tuesday - will be the deadline for Gulf Keystone Petroleum Petroleum Limited's (LONLGKP) leeway with its lenders.
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