UKOG Appeals Council Ruling on Loxley Gas Find
UK junior UK Oil & Gas (UKOG) has lodged an appeal with the government's Planning Inspectorate against a decision by the Surrey county council in England to refuse planning consent for the Loxley gas appraisal project, the company said on February 10.
Assuming there are no pandemic disruptions, UKOG expects a public inquiry to be held in the autumn, and a decision to be taken before the end of the year. The company said its lawyers believe "there are strong grounds to expect a positive appeal outcome, as the council's cited grounds for refusal are in direct conflict with the advice of its professional planning and highway officers and their respective recommendations for approval."
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Loxley, which is 100% owned by UKOG, is thought to be one of the largest gas accumulations ever discovered and flow-tested onshore in the UK, with the company estimating it could provide energy to power around 200,000 homes/year. A study by consultancy Xodus Group last year estimated Loxley's mean-case initially in-place gas resources at 49bn ft3.
UKOG has also suggested the field's gas could be reformed to produce hydrogen, helping the UK deliver on its net-zero emissions goal.
Onshore operators in the UK often face an uphill struggle in obtaining permission from local authorities. The Surrey council refused to consent to the Loxley plan, which included the drilling of an appraisal well, twice last year.