Ruspetro surges on licence extension in Russia

Ruspetro, the FTSE 250 oil and gas group, saw shares surge on Friday morning after Russian authorities granted the company a licence extension for its Palyanovsky Block.

Ruspetro, the FTSE 250 oil and gas group, saw shares surge on Friday morning after Russian authorities granted the company a licence extension for its Palyanovsky Block.

The Ministry of Natural Resources and Ecology of the Russian Federation said that if Ruspetro complies with new regulations on gas utilisation, the newly extended licence, currently due to expire in December 2015, would be extended for the economic life of the field, currently indicated to be 2063, upon review at the end of 2105.

Shares were up 8.11% at 80p by 10:15 in London.

In connection with new regulations concerning associated petroleum gas flaring in Russia, the licensing authorities have introduced a new condition regarding gas utilisation into the newly extended license.

Ruspetro said that it is currently implementing a programme for gas utilisation that it expected to be completed by the end of 2014.

Palyanovsky covers 180.5 square kilometres with proved and probably reserves of 610m barrels, according to estimates earlier this year.

BC

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

Why we won’t see a house-price crash in 2021
House prices

Why we won’t see a house-price crash in 2021

Lockdown sent house prices berserk as cooped up home-workers fled for bigger properties in the country. And while they won’t rise quite as much this y…
18 Jan 2021
Prepare for the end of the epic bubble in US stocks
US stockmarkets

Prepare for the end of the epic bubble in US stocks

US stocks are as expensive as they’ve ever been. How can you prepare your portfolio for a bubble bursting?
18 Jan 2021
The best investment trusts to buy for 2021
Investment trusts

The best investment trusts to buy for 2021

Sectors ranging from emerging markets to student accommodation look poised to do well this year, says David Stevenson, as he picks the best investment…
19 Jan 2021