By Houston Business Journal

Shares of BP Plc soared in Monday trading as the London oil giant said its plan for installing a new containment cap of the leaking pipeline in the Gulf of Mexico was proceeding as expected.

Shares were up as high as $37 during trading mid-day, or 8.7 percent from the $34.05 per share close on July 9. By close of Monday's trading, the stock had traded in heavy volume â¿¿ 69 million shares â¿¿ at $36.77, or 7.9 percent.

During the past two weeks, BP (NYSE: BP) share prices have begun to recover after dipping as low as $27 since the April 20 Deepwater Horizon rig explosion and subsequent oil spill.

Following the oil spill, share prices had at one time lost over half their value.

On Monday, the company said that over the weekend, it began replacing the existing lower marine riser package containment cap over the Deepwater Horizonâ¿¿s failed blow-out preventer with a new sealing cap assembly.

Reuters reported that BPâ¿¿s Chief Operating Officer Doug Suttles said that the company plans to have the cap in place over the next 24 hours. BP would then test the integrity of the well before making a decision on whether or not to fully shut off the leak.

The Houston Business Journal is providing continuous coverage of the Gulf oil spill.

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Copyright 2010