After big oil yesterday, it was small oil’s turn today to dominate the headlines.
The three biggest risers were UK Oil & Gas (LON:UKOG), up 203%, to 3.3p, Alba Minerals (LON:ALBA), 188% higher to 1p and Doriemus (LON:DOR), up 74% to 0.1p.
All three are members of the consortium exploring for oil at Horse Hill (HHDL) near Gatwick and today came the news they had found up to 100bn barrels, potentially.
New estimated oil in place figures of 158mln barrels per square mile over the 55-sq mile site, means that twice as much oil could sit beneath Horse Hill than has been recovered from the North Sea.
UK Oil & Gas owns 20 of HHDL, which has 65% of the prospect, while Alba Resources owns 10% and a number of others including Doriemus own smaller stakes.
The big if is how much of this is commercial and how easy it will be to recover.
UKOG denied it would have to frack the discovery and that the rocks were naturally broken and could be tapped using conventional oil production techniques.
The FTSE 100 was more than 55 points higher today to 6,995p ahead of the Wall Street open.
On the index, Burberry (LON:BRBY) rose on vague bid speculation and ahead of a trading update next week.
US private equity interests were said to be eyeing the UK fashion house though a target price hike from blue-chip broker JP Morgan also helped.
Shares jumped 3.7% to 1,809p.
Holiday Inn owner InterContinental Hotels Group (LON:IHG) was almost 2% higher to 2,724p following a 400p target price rise to 2,400p and a ‘hold’ rating put on the stock by Jefferies International.
Shell (LON:RDSB) continued to fall as analysts digested its £47bn BG (LON:BG.) takeover. Doubts over the price, dividend and potential cost savings sent the price down 10p to 2,010p.
BG eased 4p lower to £11.49 well below the indicated offer price of £13.50.
Down a level, plastic pioneer Victrex (LON:VCT) was 1% down despite a target price hike by blue-chip broker JP Morgan.
The company released good first half figures but warned of a tougher second half of the year.
Energy company Wildhorse Energy (LON:WHE) jumped 15% to 7.2p after getting into the potash market by acquiring Australia Salt Lake Potash.
Mineral investment company Rare Earth Minerals (LON:REM) lifted its stake in Bacanora Minerals to 15.4% from 15.02%. Shares dropped 6% to 1.1p.