Following fracking bans from the UK government, shares of IGAS Energy PLC (LON: IGAS) and Egdon Resources Plc (LON: IGAS) have sunk during Monday trading.

Both companies have looked at the impact of the ban, with IGAS saying that the ban will not affect its existing licence but operations may slow.

Egdon Resources PLC is assessing the impact from the government temporarily halting the controversial drilling practice.

Other firms in the industry such as Union Jack Oil PLC (LON: UJO) and Europa Oil & Gas Holdings PLC (LON: EOG) have not been affected as they do not conduct fracking procedures.

The UK government announced a plan to temporarily ban fracking after a report by the Oil & Gas Authority found it is not currently possible to accurately predict the probability or magnitude of earthquakes linked to fracking operations.

Despite this ban, IGAS have been quick to respond by saying that production and operating expenditure remains in line with expectations for the full-year.

The company pointed out the potential of its discoveries in the East Midlands, saying it has 270 trillion cubic feet of natural gas, which it says could satisfy the UK’s gas demand for 19 years.

Edgon Managing Director Mark Abbott said: “We will now take some time to review the detail of the OGA report and the government announcement of a temporary moratorium and its implications for our business before reporting to shareholders in due course.”

Egdon added: “Exclusivity has been granted to the counterparty subject to a definitive farm out agreement or other definitive legal agreement being entered into by January 19, 2020 and completion occurring by April 19, 2020.

Adding “Given the exclusivity arrangement, discussions and negotiations with other parties have been suspended and the data room closed while the agreement is in place.”

One positive for both IGAS and Egdon is that the ban is a temporary measure, and operations may continue in the future.

The UK government however, did not specify whether this ban was intended for short or long term measures, clouding the future vision for both firms.

As a result of this ban, shares in both companies have sunk on Monday.

Shares of IGAS are trading at 32p per share, crashing 11.09%, meanwhile Egdon shares plummeted 14.54% trading at 3.72p per share. 4/11/19 14:26BST.