(Alliance News) - Europa Oil & Gas Holdings PLC and Union Jack Oil PLC said on Friday they expect planning consent for further development of the Wressle field in Lincolnshire to be quashed, following a legal challenge to their application.
Europa Oil & Gas is an Ireland and West Africa-focused oil and gas exploration, development and production company that holds a 30% interest in the producing Wressle site in North Lincolnshire. Union Jack Oil is focused on onshore UK and US assets, and owns a 40% interest in the Wressle development. The operator of the Wressle field is Egdon Resources UK Ltd.
The Wressle partners said Egdon has been informed that North Lincolnshire Council will not seek to resist a proposed legal challenge against the Wressle planning permission granted in September. The oil companies also have sought legal advice and concluded they are not in the position to defend the claim.
The planning permission was to further develop the existing hydrocarbon development site within the PEDL180 and PEDL182 licences on the western margin of the Humber Basin. Plans involved extending the site to accommodate the drilling of two new wells, the construction of gas processing facilities, and an underground gas pipeline to connect Wressle to the local gas distribution network.
The legal challenge to the work is based on the council's failure to request data from the two companies about the likely scope 3 greenhouse gas emissions involved in the Wressle development, during the planning approval process.
It follows the Finch Supreme Court decision in June this year that downstream emissions must be taken into account in environmental impact assessments for fossil fuel production schemes.
The two companies will now seek a new screening opinion from North Lincolnshire Council, with the additional data on greenhouse gas emissions. Depending on the outcome from this, either the council will redetermine the existing application for planning permission, or an environmental impact assessment will be submitted.
The decision has no effect on the ongoing operations and production at Wressle, which the companies noted remain "profitable".
Shares in Europa Oil & Gas were up 2.6% at 1.00 pence each in London on Friday morning. Union Jack Oil shares were down 7.5% at 10.87 pence each.
By Emily Parsons, Alliance News reporter
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Europa Oil & Gas (EOG)
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