Why did this ASX energy share just rocket 28%?

Let's take a look at what is going on with this energy share today.

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Key points

  • This ASX Energy share just soared more than 25% 
  • A Spanish election will be held in July - investors hope this may help Berkeley gain approval for its uranium mine  
  • The energy sector is down 0.09% at the time of writing 

The S&P/ASX 200 Energy Index (ASX: XEJ) is 0.09% in the red today, but this ASX energy share is storming ahead.

The Berkeley Energia Ltd (ASX: BKY) just soared 28% from 39 cents to 50 cents before slightly retreating. The company's share price is now up 20.51% and fetching 47 cents.

Let's take a look at what is going on with this ASX energy share today.

What's the deal?

Berkeley Energy shares are rising after the company's European listing charged higher overnight.

Berkeley Energia Ltd (FRA: B5R) soared 25% to 0.30 Euros on the European market.

News that Spain will be holding an election on July 23 appeared to provide this share with a boost. Spanish PM Pedro Sanchez has called a snap election following "heavy losses" in local and regional polls.

Spanish news outlet El Pais said investors believe a potential change in Government in Spain could unlock Berkeley's uranium mine project in the province of Salamanca, Spain.

Spanish authorities have so far refused to allow Berkeley to construct the uranium mine despite court challenges.

According to Berkeley, the application has been rejected "without following a legally established procedure".

Berkeley, a clean energy company, aims to bring this uranium project to production and provide more than four million pounds of uranium a year to the European market. This would be equivalent to a third of all energy produced in Spain.

Commenting on the uranium market as part of a quarterly report in April, Berkeley said:

The outlook for nuclear power and the uranium market continued to strengthen during the quarter.
Demand for nuclear power is stable to growing through life extensions and new construction…

The company reported it has $78 million in cash reserves and had no debt at 31 March.

Berkeley Energia share price snapshot

The Berkeley Energia share price has rocketed 31% higher in the last year.

This ASX energy share has a market cap of about $209.52 million based on the latest share price.

Motley Fool contributor Monica O'Shea has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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