Shareholders of Egdon Resouces Plc (LON: EDR) have seen their shares spike on Wednesday afternoon after the firm secured a gas licence extension.

Egdon Resources plc is an independent onshore focused oil and gas exploration and production business. The firm is an established oil and gas exploration and production business with 44 licenses in proven oil and gas producing basins in the UK

Shares of Egdon resources spiked 8.31% to 3.2p. 27/11/19 14:31BST.

Big name competitors such as Shell (LON: RDSA) and SABIC (TADAWUL: 2010) have seen third quarter profits sink following volatile oil prices.

Additionally, both Nostrum Oil and Gas (LON: NOG) and Chariot Oil and Gas (LON: CHAR) saw their shares crash following modest updates.

Earlier in November, Egdon saw their shares sink following fracking bans from the government, but it seems that Egdon have bounced back from the setback.

The firm updated shareholders saying that it had received a six month extension for two UK offshore gas licenses.

The UK Oil & Gas Authority extended the period for the P1929 and P2304 licences until the end of May 2020.

With the new extension, the firm will be able to execute a farm-in deal for the licenses to provide funding for the projects by the end of January.

P1929 has estimated contingent gas resources of 231 billion cubic feet of gas and P2304 another 18 billion cubic feet.

“We are pleased to have secured extensions from the OGA for both P1929 and P2304 which contain the Resolution and Endeavour gas discoveries, key conventional projects for Egdon,” Managing Director Mark Abbott said. “This follows on from our recent announcement of securing an exclusivity agreement with a large internationally recognised exploration and production company as our preferred partner for Resolution and Endeavour.”

“Today’s news represents further positive progress for these projects and results from the proactive and constructive engagement between Egdon, the Counterparty and the OGA,” Abbott added. “Having secured the licence extensions, our focus now turns to finalising a farmout agreement and we look forward to updating shareholders on progress in this regard in the New Year.”