Proactive Investors - Union Jack Oil (LON:UJO) has noted partner Egdon Resources' withdrawal of its appeal over the North Kelsey development in Lincolnshire, with a new application to be submitted instead.
In a statement, Egdon said that the Planning Inspector had indicated a lateral borehole included in the appeal was outside of the original boundary of the 2014 planning consent and could not be considered as part of the application.
Egdon and Lincolnshire County Council had believed the borehole was valid under the Section 73 application.
As the borehole is a fundamental aspect of the exploratory well at North Kelsey, Egdon said that to ensure clarity it is applying again to Lincolnshire County Council for planning consent.
“As part of this process, we will undertake fresh consultation with the local community prior to submitting the application.
"This will provide the opportunity for members of the public and parish councils to inspect the proposals at North Kelsey,” said the statement.
Mark Abbott, Egdon’s managing director, added: "Whilst it is disappointing to have to withdraw the appeals at this late stage and with the strong belief that our case for approval was compelling, we and our advisors unfortunately saw little option given that a lateral borehole is key to the exploratory drilling, and to ensure clarity and robustness in any decision made.
"We will now focus on finalising a new application supported by recently completed updated technical assessments."
Egdon and Union Jack Oil are 50% partners at North Kelsey.