What caused APA share prices to hit 52-week high on ASX? - Kalkine Media

March 28, 2022 07:34 PM AEDT | By Aditi Saha
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Highlights

  • APA Group’s (ASX:APA) share price skyrocketed on Monday, reaching a new 52-week high of AU$10.62 at the day's peak. 
  • The strong performance of the S&P/ASX 200 Utilities Index on Monday may have contributed to the rise in the APA share price.
  • Pilot Energy Limited has declared the completion of hydrogen technology and renewable energy feasibility studies.

The share price of APA Group (ASX:APA) skyrocketed on Monday, reaching a new 52-week high of AU$10.62 at the day's peak. 

The rise coincides with a ‘good news’ about a hydrogen feasibility study financed by a consortium comprising utility firm APA Group and 2 ASX-listed energy manufacturers, Pilot Energy Limited (ASX:PGY) and Warrego Energy Limited (ASX:WGO). Pilot Energy has declared today that the feasibility studies have been completed in the mid-West region. 

Meanwhile, riding high on the announcement, the company's stock, APA, closed today's session at AU$10.470 per share, stronger by 1.061%. 

On the other hand, despite a positive update, the stock prices of PGY and WGO, two energy firms, slumped by 18% and 3%, respectively. 

In addition, while APA has had a decent growth of 4% in one year, the other two energy firms, PGY and WGO, have had a bearish year, with the share prices declining by 35% and 34%, respectively.

 

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It is worth mentioning that today the utility sector has beaten the overall market. The S&P/ASX 200 Utilities Index (ASX:XUA) ended 0.42% higher at 7,524.30 points. The strong performance of the S&P/ASX 200 Utilities Index on Monday may have contributed to the rise in the APA share price. On the other hand, S&P/ASX 200 Energy (AXEJ) ended 0.07% lower at 10,123.30 points. 

Good read: APA Group (ASX:APA) expands $150M solar project in Mount Isa 

About the companies

APA Group operates and owns electricity assets and natural gas, making it Australia's biggest natural gas infrastructure firm. 

Pilot Energy is a firm that focuses on gas and oil production and exploration. Pilot owns a 50% stake in the Cliff Head Oil field Operator and 100% stakes in EP416/480 and WA-481-P exploration licences. 

Warrego Energy Limited is a petroleum production, development, and exploration business with holdings in Uruguay, Spain and Australia. 

Also watch: The Sectoral Pulse || Where do Australian energy & banking stocks stand today? 

Completion of hydrogen feasibility studies

Pilot Energy Limited has declared the completion of hydrogen technology and renewable energy feasibility studies. The firm validates the Mid-Western area's feasibility in producing internationally competitive clean hydrogen, as well as a multi-staged development plan. 

According to a press release published by the ASX on 12 August 2021, Pilot Energy has begun critical studies to evaluate the feasibility and economics of a large-scale clean hydrogen production project using its existing gas and oil operations. 

The mid-West integrated renewable energy project's feasibility studies are listed below - 

Image source: © 2022 Kalkine Media®

Feasibility studies result

These feasibility studies have demonstrated the great potential to create a largescale clean hydrogen production project that integrates renewable energy generation and CCS to generate power and hydrogen for both export and domestic markets. 

Management remark 

Brad Lingo, Chairman, Pilot Energy, stated:

Management Remark 

What's next 

Following the execution of the WA-31L CCS feasibility study, the firm anticipates that the WA-31L Joint Venture will seek the regulatory clearance from the NOPTA (National Offshore Petroleum Titles Administrator) to declare the Cliff Head Oil Field reservoir a greenhouse gas storage formation. 

Good read: From APA Group to Crown Resorts: Why these five stocks are on the move today


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