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Planning officer recommends North Lincolnshire council approves planning consent for Wressle oil field

The original planning application was knocked back last year, but the officer said the concerns raised back then “have been overcome”
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The application will be considered next week

North Lincolnshire’s planning officer has recommended that local councillors approve planning consent for the development of the Wressle oil field, in which Union Jack Oil PLC (LON:UJO) and Europa Oil & Gas (Holdings) PLC (LON:EOG) have sizeable stakes.

Operator Egdon Resources Plc (LON:EDR) submitted a new planning application back in July, having had its original submission and subsequent appeals knocked back over the past year.

READ: New Wressle planning application submitted

The planning officer, supported by a team of external technical experts, has concluded that their earlier concerns “have been overcome”.

The latest application will be considered by the planning committee next Wednesday (November 28).

“The planning officer’s recommendation to the council to approve the application for planning consent for the development of Wressle is testament to the comprehensive work that has been undertaken to address all outstanding issues,” said Europa chief executive Hugh Mackay.

Egdon managing director Mark Abbott added: “We hope that the members of the planning committee will agree with the considered recommendation of their professional planning officer (supported in this case by specialist advisors), the various regulatory authorities and statutory consultees and approve the application at next week’s meeting.”

Egdon Resources has a 30% stake in Wressle, as does Europa, while Union Jack and Humber Oil & Gas have 27.5% and 12.5%, respectively.

Onstream as early as 2019

City broker SP Angel reckons Wressle could come onstream as early as 2019 if there are no further hiccups with the planning applications.

“We are reiterating our belief that Wressle will come onstream 2020,” said analysts at City broker SP Angel.

“However, we recognise that such is the current preparedness onsite, should the North Lincolnshire Council do their job, this could be brought forward 12 months to 2019.”

Europa shares dipped 2.7% to 2.9p on Thursday morning, while Union Jack slipped by a similar percentage to 0.11p. Egdon’s stock jumped 8.8% to 8.3p.

--Adds share price and broker comment--

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The core of the portfolio is in the East Midlands Basin, which includes the Wressle-1 oil discovery, a share of production from the Keddington oil field and a raft of drill-ready exploration and appraisal targets

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