Union Jack Oil said the UK's Planning Inspectorate has rejected an appeal against planning refusals for the Wressle oil discovery.
North Lincolnshire Council had refused to allow the project's operator, Egdon Energy, and its joint venture partners, to develop the discovery.
However, the Planning Inspectorate did uphold the operator's appeal against the decision to refuse the application to retain the existing planning for the well site, which is now retained until 28 April 2018.
"The Wressle joint venture partners will now take the opportunity to consider in detail the reasons for the refusals as contained in the decision notice and review the options available to us and will provide a further update in the next few days," Union Jack chairman David Bramhill said.
At 8:02am: (LON:UJO) Union Jack Oil Plc share price was -0.05p at 0.11p