Page 21 - EurOil Week 01 2021

EurOil PROJECTS & COMPANIES EurOil

Judge rejects challenges against

Horse Hill planning permission

UK A legal challenge against planning permission end-product oil in its environmental assessment.
to develop the Horse Hill oilfield in the south- Had the challenge been successful, the judge
UKOG is also in court ern English county of Surrey has been rejected, said it would have had far-reaching implications
over the planning project operator UK Oil & Gas (UKOG) has regarding the need to assess all indirect carbon
permission for the said. emissions, not just for oil production but for the
Loxley gas project. The London-listed junior secured approval development of many other end-products.
from Surrey County Council to produce oil from “This is a victory for law and common sense.
the deposit near London’s Gatwick Airport ear- Justice Holgate made it abundantly clear in his
lier this year, but the decision was contested by judgement that the courts are not responsible for
UK environmentalist organisation Weald Action making political, social or economic choices,”
Group. Weald argued that the council had failed UKOG CEO Stephen Sanderson said. “To our
to take into account the impact of greenhouse opponents, many of whom fail to see the irony of
gas (GHG) emissions from the combustion of burning oil to drive to our site to protest, I bring
any oil produced. In a statement on December to their attention last week’s Energy White Paper,
22, though, UKOG said the Honourable Justice in which indigenous oil and gas is a part of the
Holgate had dismissed the challenge. UK’s energy transition to net zero.”
“The written judgement rejects the challenge’s UKOG is also in court over planning permis-
three grounds and, therefore, the company’s pro- sion for its Loxley gas appraisal project, also in
duction planning consents remain in full force,” Surrey. The local council gave its consent in the
UKOG said. summer but then opted to rerun the decision
Horse Hill was dubbed the “Gatwick Gusher” after receiving external advice and over 100 other
in 2016 after a well flowed at a stable rate of 1,528 formal complaints. It voted again in mid-De-
barrels per day (bpd) – the highest flow rate of cember, this time refusing to give permission.
any onshore wildcat in the UK. UKOG estimates UKOG has appealed against the decision, and
the find to hold 21mn barrels of oil in place (OIP) expects there to be a public hearing or inquiry in
under a best-case scenario. the next six-to-nine months.
Production at Horse Hill was due to start Loxley is situated in UKOG’s 100%-con-
earlier but was delayed because of the challenge. trolled PEDL234 licence, estimated to comprise
UKOG intends to start extracting crude from the 960mn cubic metres in mean-case and 1.53bn
Portland sandstone at the site first, followed by cubic metres in high-case reserves. This makes
the Kimmeridge limestone later. the field the second-biggest gas accumula-
UKOG has an 86% interest in the field, while tion ever discovered and flow tested in the UK
Alba Mineral Resources holds a 12% stake. onshore.
Shares in OKOG were up 8.6% on the day it “Although not ideal in terms of speed, the
announced the challenge’s dismissal at GBP0.14 appeal process at least ensures Loxley’s case will
($0.19) apiece, while stock in Alba was 5.7% be assessed by a competent and independent
higher at GBP0.37. inspector who will deliver an evidence-based
Weald had also argued that the council’s deci- decision that is not unduly swayed by unsubstan-
sion did not comply with environmental impact tiated and emotive local argument,” Sanderson
assessment rules under the governing EU and said. “We trust that any future decision will also
Town and County Planning Act. But Justice Hol- consider the needs of the many who could ben-
gate said the council had not violated this reg- efit from a successful Loxley project’s affordable,
ulation. Furthermore, the council did not need low-impact, low-carbon energy, as well as those
to consider emissions from consumers using the of the privileged few.” ™

Week 01 07•January•2021 www. NEWSBASE .com P21