An island company has been given the go-ahead to assess a sea area off Maughold for natural gas and oil deposits.

Depending on the results of the assessment, which will take place in the coming months, exploratory drilling could be carried out to find out the viability of producing natural gas.

Ballasalla-based company, Crogga, has been awarded the oil and gas exploration licence by the government and it is to conduct a seismic survey of the field. If this confirms gas is present, the company could start drilling within the 266 square kilometre area of Manx territorial waters, about 10 miles off the coast.

Crogga chief executive Diccen Sargent said his company was delighted to have the contract.

’As Manx professionals, the best interests of the island are at the heart of our business and will do everything in our power to ensure that opportunities are created for residents, businesses and marine stakeholders.

’We believe in a bright future for the Isle of Man as it transitions away from energy dependency on other nations.’

The announcement comes following a bidding process last autumn.

Just two bids were assessed by the Departments of Infrastructure, Environment, Food and Agriculture, and Enterprise with help from legal and technical advisers, including the British Geological Survey.

The initial seismic surveys will be subject to approval by the DEFA and progression to future stages, such as exploratory drilling, would require further approvals.

Environmental information would also be sought.

An on-line petition against ’fracking’ in the Irish Sea, initiated by the Isle of Man Friends of the Earth collected 1,844 signatures last year.

But Mr Sargent said: ’The Crogga Field reservoirs we are appraising are all conventional sandstones rather than shale.

’We will definitely not be carrying out shale gas fracturing, as this is not a shale gas development.’

The area was previously explored by BP in the 1980s and 90s but advances in technology may now make further exploration and extraction a more viable proposition.

Examiner comment, p18.