Oil and gas firms have hailed the extension of a controversial site which has won planning approval from the local council.
North Lincolnshire council has approved planning consent for the extension of the Wressle site, near Scunthorpe.
The decision has raised fears that the project will be subject to challenge in the courts.
Environmental campaigners celebrated a win following the Finch ruling by the UK Supreme Court which require oil and gas projects to take account of all pollution expected from production – known as “scope three” – in environmental impact assessments (EIAs).
The case centred on a challenge to a development consent for an onshore oil and gas project in Surrey.
The UK government recently confirmed it won’t challenge judicial reviews brought against development consent for oil and gas projects.
Panmure Liberium analyst Ashley Kelty warned the deal could face legal challenge. He said: “This is great news and makes sense for the UK as it needs more domestic gas . However, we fear that the eco-lobby – emboldened by recent court judgments – will seek to block this through the courts.”
Works will include two wells, construction of gas processing facilities and an underground gas pipeline to connect the field to the local distribution network.
Partners Union Jack Oil (AIM: UJO) and Europa Oil & Gas (AIM: EOG) both confirmed the win in updates to the stock exchange this morning.
Union Jack chairman David Bramhill said the approval means the project will “increase oil production and monetise the associated gas from the field, resulting in zero routine flaring at site”.
He added: “This positive decision represents to Union Jack a significant domestic production growth opportunity at our robust and reliable flagship Wressle project and for the UK provides economic and environmental benefits compared to imports on which the UK is becoming increasingly reliant.
“I look forward to updating the market further as the Wressle partners progress the field development.”
Europa chief executive Will Holland said: “Domestic production accounts for less than 50% of demand in the UK, yet this provides economic and environmental benefits when compared to imports.
“The UK is increasingly reliant on imports as domestic production continues to decline and I believe that domestic production has a vital role to play in the UK as we progress towards the Net Zero 2050 target. I look forward to updating the market further as the Wressle partners continue to progress the field development.”
The Wressle field is located in onshore licences PEDL180 and PEDL182, situated on the western margin of the Humber Basin, North Lincolnshire.
The site is operated by Egdon Resources (30%) while Union Jack holds a 40% interest and Europa another 30%.
Egdon was acquired by US-based Heyco Energy Group in 2023.
First oil at the site, in an area dubbed the “heart of the East Midlands petroleum province”, was produced in 2021 after several years of planning delay.
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