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.
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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.
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