Ithaca Energy PLC (LSE:ITH) shares rose more than 5% and Jersey Oil and Gas PLC (AIM:JOG, OTC:JYOGF) jumped as much as 16% after the UK government approved development of Shell’s Jackdaw gasfield in the North Sea.
Ithaca reached 308.6p from a previous close of 293.2p before trading near 304p, while Jersey Oil and Gas climbed to an intraday high of 137.7p from Monday’s 118.5p close before easing to around 130p.
The moves followed the government’s decision to grant environmental approval for Jackdaw, clearing the way for the field to begin supplying gas to UK homes and businesses from the end of October.
Energy Secretary Miatta Fahnbulleh said the decision would support UK energy security by providing additional domestic gas during the winter and reducing reliance on imported fuels.
The approval had been widely expected after Shell resubmitted its environmental assessment earlier this year following a court ruling requiring producers to account for emissions generated when their oil and gas is ultimately burned.
Jackdaw already holds a production licence, meaning the decision centred on environmental consent rather than the award of a new exploration licence.
The government reiterated that it remained committed to ending new North Sea oil and gas licences while maintaining its target of reaching net zero emissions by 2050.
Attention will now turn to Equinor’s Rosebank oilfield, which is awaiting a separate environmental decision after also having its previous approval overturned.
The North Sea oil and gas industry argues that Jackdaw and Rosebank could together provide around 10% of UK production at their peak, while opponents say their contribution to domestic energy supply would be limited and inconsistent with climate targets.
The decision is significant for North Sea-focused companies such as Ithaca Energy and Jersey Oil and Gas, with investors viewing it as a more supportive signal for existing licensed projects seeking regulatory approval.
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