North Lincolnshire Council has paid costs of £403,000 after losing an appeal on plans for oil production at Wressle, the site operator has confirmed.
In a statement to investors this morning, Egdon said:
“we can advise that the gross sum of c. £403,000 has now been received from North Lincolnshire Council as settlement in full of these costs.”
The company’s managing director, Mark Abbott, said:
“We are … pleased to have received the costs in full from North Lincolnshire Council which strengthens our finances.”
Four months before the inquiry, North Lincolnshire Council decided to withdraw its case against Egdon. It called no witnesses and opposition to the scheme was left to local people. DrillOrDrop invited the council to comment on the cost awards. This article will be updated with any response.
Egdon Resources has a 30% stake in the Wressle project. The statement said Egdon would share the costs with the other partners: Europa Oil & Gas Limited (30%), Union Jack Oil plc (27.5%) and Humber Oil & Gas Limited (12.5%).
Egdon’s statement also said the company had installed four groundwater monitoring boreholes on the Wressle site.
Egdon said the boreholes would be monitored and the results analysed during the life of the site. The initial three months of sampling would determine the baseline groundwater quality, the company said.
Previous statements from the company have predicted that the first oil from Wressle would be produced in the second half of 2020, increasing Egdon’s total oil production by 150 barrels a day. The company has said Wressle would remain “economically robust” with an estimated break-even oil price of $17.62 per barrel.
Managing director, Mark Abbott, said today:
“We continue to make good progress with the Wressle development despite the current challenging operating environment.
“The successful installation of the groundwater monitoring boreholes represents an important step in the progress to first oil.
The planning permission was subject to 20 conditions, some of which must be discharged before work can start on reconfiguring the site, installing new equipment and operations underground.
Earlier this week, DrillOrDrop asked North Lincolnshire Council which planning conditions had already been discharged at the Wressle site and which remained to be approved. We will update this post with the council’s response.