Partners seeking to produce oil in the protected Lincolnshire Wolds have abandoned their challenge to the refusal of planning permission, a formal statement announced this morning.

Union Jack Oil, a partner in the Biscathorpe scheme near Louth, told shareholders it had “made the decision to withdraw” from the planning appeal, due to be heard in April 2026.

It said continued investment in the development could no longer be justified.

Union Jack said plans for a new sidetrack well and long-term oil production at the Biscathorpe site would now be shelved.

The statement also said the site operator, Egdon Resources, intended to give up the licence, PEDL253, “in due course”.

At the time of writing, Egdon, owned by the US-based Heyco group, has not commented publicly on the decision.

Opponents of the Biscathorpe plans said they were “relieved and delighted” that drilling would now not go ahead. But they said they were disappointed that evidence they had assembled to put to next year’s inquiry would now not be heard in public.

This is the second time Egdon Resources has pulled out of a planning appeal for an oil site. In June 2023, the company withdrew its challenge to refusal of permission at North Kelsey, also in Lincolnshire, days before the start of a hearing.

10+ year planning battle

Today’s announcement ends a planning dispute lasting more than a decade in the Wolds former area of outstanding natural beauty, now known as a national landscape.

Lincolnshire County Council refused planning permission for the Biscathorpe development in 2021, on the opening day of the Glasgow international climate summit.

Egdon appealed and overturned the decision in 2023. But a year later, the High Court ruled that the planning inspectorate must redetermine the appeal.

The decision followed a landmark judgement at the Supreme Court in the Sarah Finch case. This said decisionmakers must take into account carbon emissions from the burning of oil, as well as from the production process.

The companies’ decision to withdraw from the appeal comes a week after the closing date for submissions of evidence to the Biscathorpe inquiry.

Amanda Suddaby, of SOS Biscathorpe, which has been campaigning against Egdon’s plans, said:

“It has come as a surprise to learn today that Egdon have chosen to withdraw from the Appeal.

“After more than a decade of campaigning, we are of course relieved and delighted that drilling at Biscathorpe will not now go ahead and the licence will be relinquished. This outcome is a testament to the dedication, persistence and hard work of everyone who has contributed over the years – all of whom we want to thank.

“It is striking that Egdon and their partners have withdrawn just one week after receiving our Statement of Case and supporting evidence. While they claim that their decision is unrelated to the evidence, the timing strongly suggests otherwise.

“We are disappointed that the substantial body of evidence we had assembled, and the wider arguments concerning fossil fuel extraction in the context of the climate crisis, will not now be examined in full and in public at the Inquiry.

“We are confident that, had they been tested, the outcome would have been the same for Biscathorpe.  Egdon’s decision to withdraw appears to be an attempt to avoid that scrutiny.

“Our evidence clearly demonstrates that new oil extraction is indefensible in a climate emergency — a conclusion Egdon and their partners now seem to share.

“We will, of course, continue our efforts until the site is fully restored and will be looking to Lincs County Council to ensure that it happens as soon as possible.”

Union Jack Oil, which has the largest stake in the Biscathorpe licence (45%) said:

“Having considered the commercial aspects, prevailing tax regime and the continued lack of clear case law in respect of oil and gas projects in the UK post-Finch, the PEDL253 joint venture partnership has concluded that it could no longer justify its continued investment in the Biscathorpe project, and that it should therefore withdraw its appeal.

“This collective decision was augmented by a strengthened legislative duty applying to National Landscapes (formerly AONBs) introduced in late 2024.”

David Bramhill, executive chairman of Union Jack Oil, added:

“With a backdrop of a changing macro-economic environment, along with the continued regulatory uncertainty in relation to how downstream emissions will be considered, we have concluded that this is the correct decision for the Company’s wider objectives, which includes the future development of Wressle and the planned drilling programme in Oklahoma.”

Opponents of oil and gas operations in East Yorkshire suggested Mr Bramhill’s comments may cast doubt over further development at West Newton, where Union Jack Oil is also a partner.