Egdon Resources plc (AIM:EDR) provides an update on plans to progress the development of the Wressle oil field following the recent decision of North Lincolnshire Council’s Planning Committee to refuse planning permission for hydrocarbon production.
Having consulted with Joint Venture partners and taken further detailed advice, we can advise that we will submit a formal appeal against the refusal of planning consent at the earliest opportunity.
We can also advise that we will in parallel submit a new Planning Application for the Wressle development which will include even more detailed information to address the specific concerns outlined by North Lincolnshire Council in their refusal.
We will look to progress both the new application and the appeal through the Planning system as quickly as possible. We believe that this dual track approach will provide the best opportunity for a successful outcome with the minimum delay.
In view of the planning refusal and the expected timeframe for the appeal and/or re-determination, the Company has revised its guidance for average production for the financial year ending 31 July 2017 to 100-110 barrels of oil equivalent per day (“boepd”) against our previous guidance of 165 boepd. As a result of the delay in both capital investment and generated income, the impact on the Company’s net cash-flow for the current period will be negligible.