UK Oil & Gas PLC shares rose on Tuesday after the company said a report showed that Loxley Gas discovery, south of Guildford in Surrey, has confirmed the project’s potential economic value.
Shares at 0808 GMT were up 0.01 pence, or 14%, at 0.07 pence.
The energy company said that the competent person’s report indicates an average estimate of contingent resources of up to 124 million pounds ($149.3 million) net present value.
The report also estimates an average of 31.0 billion cubic feet of resources within the company’s fully owned PEDL234 license.
“Loxley’s illustrated potential commercial robustness also means that UK Oil & Gas can now plan to fund a future development via normal conventional oil and gas debt funding. The option of a farmout, where UK Oil & Gas’ costs are carried by a new partner, remains a further viable funding option,” it added.
The group expects gas production and sales to start from 2026.