Egdon Resources Plc (LON:EDR) and Union Jack Oil PLC (LON:UJO) expressed surprise and disappointment as planning permission for the Wressle oilfield was turned down by North Lincolnshire County Council.
Mark Abbott, Egdon Resources’ managing director, said: "We are very disappointed by the decision of the Committee that goes against the positive recommendation of their Planning Officer which was determined after an extensive and thorough review of our proposals.”
He added the company had been operating exploration and production sites in a safe and environmentally sensitive manner across the region for many years.
“We will now take time to consider our options including our right to bring forward an appeal."
Egdon shares fell 15% to 13.45p while UJ Oil dropped 0.04p to 0.14p.
Egdon is the operator with a 33% stake while Union Jack holds an 11.67% interest in both licences.
Other investors include Europa Oil (LON:EOG) with a 30% working interest and Celtique Energie Petroleum (33.3%).
Hugh Mackay, Europa's chief executive, also expressed his disappointment.
"Lying just 5km away from the Europa-operated Crosby Warren field, Wressle is located in the heart of the East Midlands petroleum province, a region with a long heritage of conventional oil and gas production.
"Furthermore, at an anticipated gross rate of 500 bopd, Wressle has the potential to generate meaningful revenues not just for the participating companies, but also for the government in the form of tax receipts."
-- adds Europa CEO comment--