Union Jack Oil PLC (AIM:UJO, OTCQB:UJOGF) has announced the withdrawal of its planning appeal for the proposed side-track drilling and oilfield development at Biscathorpe, within licence PEDL253.
The joint venture, in which Union Jack holds a 45% interest, had previously secured planning consent in 2023. However, that consent was quashed in 2024 following a High Court ruling relating to downstream emissions.
Following the setback, the operator Egdon Resources submitted updated environmental documentation, including a Climate Change Assessment. The Planning Inspectorate later directed the appeal to be heard via a multi-day public inquiry instead of written representations.
Union Jack stated the joint venture concluded the project was no longer commercially viable due to legal and legislative uncertainties, changes in the tax regime, and a new duty concerning National Landscapes.
Executive Chairman David Bramhill said: “With a backdrop of a changing macro-economic environment, along with the continued regulatory uncertainty in relation to how downstream emissions will be considered, we have concluded that this is the correct decision for the Company's wider objectives, which includes the future development of Wressle and the planned drilling programme in Oklahoma”.
According to broker Zeus Capital, Biscathorpe had attractive potential, but delays in the planning process made continued investment difficult to justify. Zeus expects Union Jack to increase focus on the Wressle field and its upcoming wells in Oklahoma.