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Union Jack Oil welcomes government statement on shale development
UK-focused onshore hydrocarbon production, development and exploration company Union Jack Oil said it welcomes the government's support and commitment to it industry on Friday, as was laid out in a written ministerial statement from the Department of Business, Energy and Industrial Strategy and the Department for Housing, Communities and Local Government.
The AIM-traded firm said the statement constituted a "material consideration" in planning decisions, and reiterated that shale gas development was of "national importance".
It added that the government would publish revised planning practice guidance on shale development in the summer, alongside the launch of a consultation that would consider allowing exploration wells to be drilled under permitted development - without the requirement of a planning application - and consult on the inclusion of shale production projects into the 'Nationally Significant Infrastructure Projects' regime.
The development of shale resources is a fraught subject in many parts of the UK,given it often makes use of the controversial hydraulic fracturing, or 'fracking', method.
"We are delighted by the joint statement released today by Greg Clark and James Brokenshire that wholeheartedly supports the safe and sustainable exploration and development of the UK's onshore shale gas resources," said executive chairman David Bramhill.
"The statement not only highlights the importance of securing stable domestic gas supplies while minimising harmful environmental impacts but also the substantial economic benefits that the development of onshore gas production can bring to local communities and the UK as a whole."
Bramhill said Union Jack and its peers welcomed the "progressive change in attitude" by key ministers.
"Being at the forefront of the UK onshore hydrocarbon industry, Union Jack is well positioned to benefit from this revised strategy and look forward to the exciting opportunities that await all of our stakeholders.
"The future remains very bright."