Energy firm abandons East Yorkshire gas well

Rathlin Energy said their decision was based on technical and commercial grounds and against the background of the continuing depression in world energy prices.

However they will continue work at a second well at West Newton in Holderness where they have had “very encouraging” test results.

In a statement the company said: “After thorough analysis, Rathlin has concluded that the costs associated with testing the Crawberry Hill well cannot be justified, relative to probability of commercial success.

“We continue to believe in the overall prospectivity of the geology in the Crawberry Hill area, but the current well site is not a preferred location for further drilling or completion investment and, as a result, the well will be abandoned and the site restored.”

A spokesman said campaigners had not influenced their decision “in any shape or form.”

But protestor Jon Mager said: “In October protestors’ presence was given as one of the reasons they have been delayed.

“David Montagu-Smith (the company’s chairman) has done everything he can to get rid of protestors and we are still there.

“There aren’t enough inspectors and regulators to keep an eye on the industry, and having people there, being observant is a problem for them which they don’t have in Australia or America.”

It comes after the Government announced moves which could see decisions on fracking applications taken out of local hands.

Ministers will be given the power to decide individual planning applications for fracking sites even before the local council has taken a view.

The Government will also take over responsibility for all fracking applications from councils which repeatedly delay decisions.

Ministers are worried efforts to start a shale gas mining industry in the UK are being undermined by councils’ delaying decisions but critics claim the Government is trying to bypass legitimate local opposition.