‘Gatwick gusher’ wins drilling permits

THE Environment Agency has given the go-ahead for the developers behind the controversial Surrey oil project to start “oil flow” drilling tests in the area.

Permits were granted to Horse Hill Developments for the project, which was dubbed the “Gatwick gusher” following the consortium’s widely refuted claims that the Weald Basin near Gatwick Airport could hold billions of barrels of oil. London-listed UK Oil & Gas Investments (UKOG) holds a 49.9pc stake in Horse Hill after extending its share of the consortium last month. The driller holds over 64pc of the licences, to give UKOG a 32.4pc stake.

UKOG’S shares failed to hold early gains, ending down 0.3pc at 8.15p, after the company confirmed it had been given the necessary permits to carry out extended flow tests.

They jumped earlier this week following a visit from Surrey Council’s planning committee ahead of a crucial hearing next month in which Horse Hill is hoping to be granted permission for long-term production testing and further appraisal drilling.

The company’s value remains less than half what it was 10 years ago.