The share price of under-the-radar energy-focused company AJ Lucas Group Limited (ASX: AJL) has taken off this week.
At one point, it was posting a weekly gain of 133% amid news the United Kingdom (UK) government has lifted a near-three-year ban on fracking.
Fracking – the technique used to release gas from shale rock – is a major business for AJ Lucas. Its subsidiary, Cuadrilla Resources, is the UK's leading onshore shale gas exploration company.
After opening at 10.5 cents on Monday, the AJ Lucas share price leapt to a high of 24.5 cents today. That marks a 133% gain.
It has since handed back some of that gain to trade at 17.75 cents at the time of writing – representing a 68.9% weekly gain.
Let's take a closer look at the news that seems to have been driving the ASX energy-focused stock this week.
What's driving this energy-focused ASX share sky high?
The AJ Lucas share price has rocketed this week amid news the UK government has lifted its ban on fracking in an effort to bolster the nation's gas supplies.
New UK Prime Minister Liz Truss expects the change will help the nation regain its independence from international energy prices. Energy prices have surged this year following Russia's invasion of Ukraine.
Fracking was banned in the UK in November 2019. Its prohibition was due to concerns about earth tremors and its environmental impact, BBC News reports.
In a press release shared to the ASX today, Cuadrilla Resources CEO Francis Egan says:
This is an entirely sensible decision and recognises that maximizing the UK's domestic energy supply is vital if we are going to overcome the ongoing energy crisis and reduce the risk of it recurring in the future.
Cuadrilla Resources said the UK was previously on a path that would see it importing two-thirds of its gas by 2030. It said such a reliance on international gas would risk supply shortages and price hikes.
AJ Lucas share price snapshot
It's been a good year for the relatively unknown ASX energy share.
This week's gains included, the AJ Lucas share price is currently trading 407% higher than it was at the start of 2022.
It has also gained 492% since this time last year.
