Europa Oil & Gas (Holdings) (AIM:EOG) shares fell 5.2% to 1.4p after North Yorkshire Council refused planning permission for the Cloughton gas appraisal well.
The refusal runs counter to the recommendation from the council's planning officers who, after rigorously analysing the planning application and the 13 independent expert reports that supported it, advised the LPA to approve the application.
The company said it is disappointed and strongly disagrees with the basis of the refusal and is assessing its options with a view to appealing the decision.
Europa said it is confident that on appeal the planning permission will be approved.
