Two of the companies behind controversial proposals to drill for gas near the North York Moors National Park are looking to raise more than £6.5m for the scheme.

Europa Oil & Gas and its partner Egdon Resources are seeking investors to pay for the proposed appraisal well in the village of Burniston and a 3D seismic survey of the area north of Scarborough.

In return, the companies are offering investors a stake in the project.

The local campaign group, Frack Free Coastal Communities, described the announcement as “worrying”. It said:

“if the project does go ahead, how can local residents be assured that Europa will have the funds to carry out the final phase of the project – restoring the site to its current condition?

“At the very least, a financial bond to cover restoration costs should be made a condition of any planning consent.”

Europa, the licence operator, has already applied for planning permission and an environmental permit for the Burniston scheme.

The proposals have been strongly opposed locally, particularly because they include a proppant squeeze – a form of fracking currently allowed under the moratorium in England. Many concerns centre on the risk of induced earthquakes and the threat to locally crumbling cliffs.

Four local councils have unanimously objected to the planning application and there have been about 1,500 public objections. A decision on the planning permission is expected to be made by North Yorkshire Council by the end of this year.

Funding details

The funding offer, known in the industry as a farmout, was announced by the acquisitions advisor, Envoi.

It suggested that Europa and Egdon were looking for about £6.56m. The appraisal well is estimated to cost £6.4m and the seismic survey £800,000, Envoi said.

In return for the funding, the two companies are jointly offering up to a 40% interest in the project. They jointly hold 80% of the exploration and development licence, PEDL343, issued by the government in 2026. (The remaining 20% is held by Petrichor, part of the same group as Egdon).

Envoi said:

“Access to the key data on this opportunity can be made available online after execution of a Confidentiality Agreement.”

It added:

“Serious parties will be invited for a presentation followed by access to the full data set.”

Seismic survey

In September 2024, Europa told investors it expected to carry out the 20km2 3D seismic survey of what it calls the Cloughton gasfield around Burniston in the final quarter of 2024.

FFCC said the survey had since been “postponed several times”.

In the farmout details, Envoi said Europa was still “awaiting the approvals” to acquire the survey. The work is now scheduled for “towards the end of 2025 or early in 2026”, Envoi said.

The seismic survey is a work condition of PEDL343. Europa has until February 2026 to complete it, according to Envoi.

The survey is also required by the hydraulic fracturing plan (HFP) that must be submitted and approved before a proppant squeeze can go ahead. The HFP outlines how risks of earthquakes or tremors induced by fracking would be reduced and how they would be monitored.

Additionally, the North Yorkshire Mineral Plan requires fracking planning applications to include “compelling evidence which demonstrates that induced seismicity can be managed and mitigated to an acceptable level”. This should include information on known faults and an assessment of the potential for induced seismicity.

The planning application contained no seismicity mitigation plan and the accompanying planning statement, had just one reference to seismicity.

FFCC said:

“Europa have submitted both a planning application to North Yorkshire Council and an Environmental Permitting application to the Environment Agency without the detailed geological data that would allow an assessment of the potential risk of earthquakes – data that will only come from the delayed 3D seismic survey. Local farmers and landowners have now been told that the survey may not happen until early next year.

“The news that Europa are now looking for a partner to provide the £800,000 needed for the survey suggests that one reason for the delay is that they do not have the funds to pay for it.

“If they are so short of cash that they can’t carry out an essential prerequisite for submitting a Hydraulic Fracture Plan to the North Sea Transition Authority, nor to drill a well, how can any of the regulators – including North Yorkshire’s planners – be satisfied that Europa have the finances in place for their proposed project?”

Appraisal well

The PEDL343 licence also included a ‘drill or drop’ commitment. This is where the operator either drills a well or gives up (drops) the licence.

Envoi said the seismic survey results would “allow a ‘drill or drop’ decision” to be made before the initial phase of the licence expired in March 2026.

Drilling the Burniston appraisal well is scheduled for the final quarter of 2026 to early 2027, Envoi said.

Steve Mason, of the campaign network Frack Free United, added;

“And here it is: the real reason that planning was submitted [for Burniston]. The industry framework consists of: Submit planning; Raise awareness for the project; Beg for money to pay for it.

“We have seen this before in energy projects time and time again.

“There should really be a proof of affordability before a company can subject communities to even the threat of fracking.”