The onshore UK company - alongside London-listed partners Europa Oil & Gas Plc (LON:EOG) and Union Jack Oil PLC (LON:UJO) - told investors that it will now make a new planning application to the North Lincolnshire council seeking consent for the Wressle field development.
It comes after the planning inspectorate earlier this month rejected appeals made by Egdon and its partners following prior planning refusals by the council.
Egdon said it has taken legal and planning advice, and has fully considered the specific reasons for rejection of the appeals.
The new application will be made before the current expiry of the current planning consent for Wressle (accordingly the deadline is April 28), though it also intends make a new application to extend the current consent period to allow the council sufficient time to consider the new application.
Still committed to Wressle
"Egdon and its joint venture partners remain fully committed to the Wressle project and the proposed new application will address the limited reasons for refusal highlighted by the inspector,” said Mark Abbott, chief executive of Egdon, which owns 25% of the project.
Elsewhere, Europa Oil & Gas and Upland Resources Ltd (LON:UPL) have cancelled a proposed deal which would have seen the latter take a 10% stake in the Wressle field, subject to planning approval, and accordingly the former will retain a 30% interest in the project.
Europa chief executive Hugh Mackay, in a statement, said: “Wressle is a proven oil discovery with proven reserves, significant upside and capable of flowing at 500 bopd gross on production startup. It remains an excellent opportunity to significantly increase our net production.
“Along with all the partners, we therefore support Egdon’s plans to submit new applications that address the issues raised by the inspector.
“We are confident these issues are not insurmountable and that Wressle will finally be brought online.”
David Bramhill, chairman of 15% project stakeholder Union Jack Oil, meanwhile, added: “We share the frustration of our shareholders given the UK planning obstacles we have encountered at Wressle, so we fully endorse the decisions of the Wressle joint venture partners to pursue all credible avenues to be able to bring this significant conventional oil discovery into production.
“In addition to the Wressle forward plan, I would like to reassure shareholders that as Union Jack possesses an attractive onshore portfolio of other producing assets and drill-ready exploration and appraisal targets that, in today's oil price environment, the board has been alert to generating improved shareholder value by refining its forward strategy.”