Angus Energy Plc (LON:ANGS) told investors that Surrey County Council (SCC) has asked it to make an application for planning permission for the Brockham field, where a government sanctioned programme is already underway.
Brockham was already a producing oil field prior to this year’s programme and on Monday, the national regulator Oil & Gas Authority gave its approval for Angus to start production from the Kimmeridge zone in a new side-track well.
READ: Angus Energy approved to start production from Kimmeridge at Brockham field
In a stock market statement, Angus notes that the latest communication from the SCC represents the first formal request or formal notice for new planning permission.
“After a careful and considered review, the management team and board of directors of Angus Energy will, as operator of the licence, submit a normalisation application for the continued surface activities of the production plant required for well BR-X4 and notably, its inclusive sidetrack BR-X4Z,” the company said.
Angus described this as a “prudent and pragmatic step”.
It added: “The company reiterates it has all the required permissions from all of its regulators to continue production at the Brockham Oil Field including the Kimmeridge layers.
“In taking this intermediate step, the company has not relinquished any rights or further options at its disposal to protect shareholders.
READ: Angus Energy completes Lidsey-X2 drill programme near Bognor Regis
“The company has worked with the SCC throughout this process and will continue to do so without exception. Both parties continue to maintain a professional relationship and on-going communications.”
Additionally, the company said: “The board of Angus Energy does not take any decision concerning our shareholders lightly.
“We are confident our actions today have been given thoughtful consideration and fully expect this intermediate step to have minimal impact on our current business plan.
“We look forward to continued communication and cooperation between Angus Energy and the Surrey County Council."
Shares were down 16.9% to 27.44p late on Wednesday.
--Updates for share price--