Proactive Investors - Run By Investors For Investors

City analyst blasts council decision to block Wressle field development

The rejection goes against the recommendation of the council's own planning officer, and City broker SP Angel suggests that councillors have overstepped their remit.
oil workers
Wressle was supposed to deliver 500 barrels of daily production starting in early 2017

Local government officials that have blocked the start-up of the Wressle oil field, in Lincolnshire, have overstepped their remit, so says City broker SP Angel.

It was announced on Wednesday that North Lincolnshire County Council turned down an application for planning permission.

Europa Oil & Gas (Holdings) PLC (LON:EOG), a key stakeholder in the Wressle project, says the council’s planning decision goes against a positive recommendation by the council’s own planning officer which followed an extensive and thorough review of the field development plan.

Hugh Mackay, Europa chief executive, on Wednesday told investors that the company is disappointed with the decision and the partners in the project will consider options including the right to appeal.

SP Angel oil and gas analyst Zac Phillips, in a note, said: “If the public record of the statements made at the planning meeting are correct the rejection of the Wressle development planning application was not based on the merits of the application, but in reaction to the Environment Agency's handling of the flood response in the recent past.

“On this basis, the councillors have overstepped their remit and while they may have a point about the Environment Agency, they have opened themselves up to legal challenge.”

Phillips added: “The planning approval process must only be concerned with planning matters and, with no respect any concerned, they should do their jobs, not grandstand.”

Europa Oil & Gas has a 30% stake (albeit it has recently agreed to divest down to 20%) in Wressle, alongside AIM quoted partners Egdon Resources (LON:EDR) and Union Jack Oil (LON:UJO) which own 25% and 11.67% respectively.

Why Invest In Europa Oil & Gas (Holdings) Plc? Read More Here

Register here to be notified of future EOG Company articles
View full EOG profile

Europa Oil & Gas (Holdings) Plc Timeline

December 08 2016
November 24 2016

Related Articles

One of Iofina's plants in Oklahoma where it produces iodine from brine water taken as by product from oil fields
December 12 2016
A new debt deal and the prospect of improving markets bode well for the AIM group's continuing recovery.
oil barrels and an oil rig
August 18 2016
The oil and gas firm says it is “delighted” after having received its first payment for the gas supplied to the Tanzania Petroleum Development Corporation
February 15 2017
Citing figures produced by Origin Energy, its partner in and operator of 16,000-square kilometres of licences, the gross best estimate of gas in place is put at a world-class 496 trillion cubic feet. Converting that to oil equivalent, it stacks up to 82bn barrels of the black sticky stuff.

© Proactive Investors 2017

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.