Court Challenge for UK Development Refusal

British energy company Europa Oil & Gas is launching a legal battle to develop the Holmwood prospect in Surrey.

The company has gone to the UK High Court, challenging a government decision to refuse mining.

Surrey County Council initially refused permission to develop the area last year. Europa and its partners in the project, Egdon Resources, Warwick Energy and Altwood Petroleum, appealed that decision. The case then went to the Secretary of State for Communities and Local Government, Eric Pickles. Last month Mr Pickles' department announced that the appeal had failed.

The Holmwood site is in the Weald Basin, south of the town of Dorking and east of Guildford.

Europa's chief executive, Hugh Mackay, said that the Holmwood prospect had a one-in-three chance of success, and could make a considerable contribution to the British economy.

"During a time of challenging macroeconomic conditions, hydrocarbon exploration can provide the UK with much needed inward investment, job creation and tax revenues,” he said.

Europa, the major partner in the project, currently produces oil from three UK onshore fields, and is carrying out appraisal work in Romania and France.

Further reading on this story - Europa, partners, suffer setback