Europa Oil & Gas (Holdings) Plc (AIM:EOG, FRA:EGN) shares fell 8.3% to 1.33p after North Yorkshire Council refused planning permission for the Cloughton gas appraisal well in North Yorkshire.
The AIM-listed oil and gas group said the decision went against the recommendation of the council’s own planning officers, who had advised the local planning authority to approve the application following reviews by 13 independent experts.
Europa said those expert reports had all supported the proposal.
The company said it was “disappointed” with the outcome and strongly disagreed with the reasons for refusal.
Europa added that it is now assessing its options, including a possible appeal, and remains confident that planning permission would eventually be granted.
The Cloughton appraisal well is intended to test gas resources in the East Yorkshire area and forms part of Europa’s UK onshore portfolio.
The company announced in April that the planning application would be determined by North Yorkshire Council after a delay to the original timetable.
Planning approvals remain a key hurdle for onshore oil and gas projects in the UK, where operators often face opposition from local authorities and campaigners due to environmental concerns.