19th Jun 2014 11:25
LONDON (Alliance News) - Shares in Europa Oil & Gas holdings PLC rose Thursday after the company said the Court of Appeal ruled in its favour over an appeal from the Leith Hill Action Group that was trying to prevent the drilling of an exploratory well at the Holmwood prospect in Surrey.
The AIM quoted oil and gas exploration and development has a 40% interest in the PEDL 143 licence in the Weald Basin in Surrey that contains the Holmwood prospect, a potential conventional oil prospect, near the Leith Hill beauty spot. Egdon Resources PLC has a 38.4% interest, Altwood Petroleum a 1.6% interest and Warwick Energy a 20% interest.
The Leith Hill Action Group says exploration will damage an "irreplacebale ecological habitat", while the related heavy goods vehicle movements will damage ancient lanes and raises safety concerns for other road users. It says the proposed development is in an Area of Outstanding Natural Beauty and in the so-called Green Belt, which is subject to tighter planning rules than Brown Belt land.
The High Court had last year ruled in favour of the companies who were appealing a decision by the Surrey County Council planning inspector to block exploratory drilling. The Leith Hill Action Group then appealed that decision to the Court of Appeal.
The companies will now take their plans back to the Surrey Country Council planning department.
"Europa's appeal against Surrey County Council's refusal to grant planning permission to drill one exploratory borehole and undertake a short term test for conventional hydrocarbons at the Holmwood prospect will therefore be remitted to the Planning Inspectorate for redetermination. This may involve a further planning inquiry," Europa said Thursday.
"With mean gross un-risked prospective resources of 5.6 million barrels of oil, as estimated in a (competent person's report) published in June 2012, and a one in three chance of success, we view Holmwood as being one of the best undrilled conventional prospects onshore in the UK. Holmwood not only has the potential to materially add to Europa's existing production from three UK fields, but also to generate significant tax receipts for the UK government over the life of a well," it added.
Europa Oil & Gas shares were up 5.1% at 7.75 pence Thursday, while Egdon Resources was down 2.7% at 27.50 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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