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UK Oil & Gas (LON: UKOG) shares have reacted negatively to the news that the Isle of Wight Council's Planning Committee has refused consent for the appraisal and testing of the Arreton oil and gas discovery.
UKOG said it was disappointed by the decision, which it said goes against last week's recommendation by the council's planning officers to approve the project.
The Arreton discovery lies within the 200 km² PEDL331 licence in which UKOG holds a 95% operated interest.
“The company took considerable care and undertook much research to minimise the potential impacts of the A-3 site, choosing a location 300m distant from the A3056 and adjacent to land with existing non-agricultural commercial uses, namely the Wight Farm Anaerobic Digestion Energy Power Station and the Blackwater Quarry for aggregates,” said UKOG.
The company said it will now examine its position and decide whether to lodge an appeal with the Planning Inspectorate.
Stephen Sanderson, CEO of UKOG, commented: “This decision underscores UKOG's change of focus over the past year towards the international arena for oil and gas, plus its new direction into geothermal and hydrogen-based energy in the UK.
“In accordance with the Company's stated growth strategy, plans and evaluations are reasonably advanced in several new projects designed to grow the Company in these new areas.”
UKOG shares are currently down 7.14% at 0.13p after initially plummeting to a low of 0.10p.
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