Europa Oil & Gas Plc (LON:EOG) has told investors that the UK Environment Agency has indicated in a draft decision advertisement that it is inclined to award a bespoke environmental permit for drilling and testing for the Holmwood exploration well.
There will now be a four week public consultation process, taking place between February 15 to March 15.
"We are pleased to have reached this important stage in the environmental permitting process,” said Hugh Mackay, Europa chief executive.
“Whilst we are still in the determination process and a final decision has not been made, it is nonetheless positive that the Environmental Agency is inclined to approve.
“We look forward to the outcome of the consultation process and will keep shareholders updated."
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Europa is the operator at Holmwood, holding a 20% stake in the project alongside a number of exploration partners – including UK Oil and Gas Investments Plc (LON:UKOG) with 30%, Union Jack Oil PLC (LON:UJO) and Angus Energy Plc (LON:ANGS).