Upland Resources has terminated its agreement to buy a 10% stake in the Wressle project after Lincolnshire authorities refused planning applications to develop the discovery.
Upland, registered in the British Virgin Islands, entered into the agreement in November 2016.
A £160,000 deposit is due to be returned to Upland by Europa Oil and Gas, one of the project partners.
Upland will have no further financial obligations under the Wressle Farm-in Agreement.
Steve Staley, CEO of Upland, said: “Whilst we are obviously disappointed that we will not be continuing with the Wressle opportunity, we have no shortage of good assets to pursue and develop, as recently highlighted through our farm-in to the highly prospective Wick prospect in the UK North Sea, and will be updating investors in due course as to the other active discussions we are currently in.”
Meanwhile, project operator Egdon said it was preparing to submit a new planning application to North Lincolnshire Council seeking consent for the development.
The company thinks the new application will address issues raised in the recent decision to turn down its appeals against earlier rejections.
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