Europa Oil & Gas (Holdings) Plc (AIM:EOG, FRA:EGN) opened Monday's session on the back foot, before rallying, in the wake of the latest UK planning dispute for onshore oil and gas.
The AIM-listed oil and gas explorer, in a statement, said plans to appeal after North Yorkshire Council’s planning committee indicated it was minded not to approve the company’s proposed well at Burniston on the Cloughton prospect.
Europa noted that the committee’s position, taken at a meeting on 24 April, came despite a positive recommendation from the council’s own planning department that the operation should proceed.
A final recommendation remains pending a decision by the Secretary of State over whether an environmental screening assessment is needed for the proposal. Europa said it had already voluntarily completed and submitted such an assessment as part of the planning application.
The company said it was disappointed by the committee’s decision, which it said followed an exhaustive review process and directly contradicted the planning officers’ endorsement.
Chief executive William Holland said the application was underpinned by “13 expert reports and exhaustive preparatory work” and added that Europa remained of the view that the well “can be safely and efficiently delivered”.
Europa shares dropped to an intraday low of 1.38p in Monday's opening trades, before rallying - marking a 3% gain for the day, at 1.7p by around 9:00am.