After years of attempting to extract oil in Surrey, the company behind a high-profile drilling project that was rejected in a landmark Supreme Court ruling has sold the site for a fraction of its original investment and has rebranded as a clean energy company. UK Oil and Gas (UKOG) spent over a decade trying to develop the Horse Hill oilfields, where it claimed to have discovered up to 100 billion barrels of oil. However, in 2024, the Supreme Court, in a ruling now referred to as the Finch Ruling, determined that planning authorities must consider the indirect greenhouse gas emissions from oil and gas projects when assessing their environmental impact. This decision overturned a local council’s approval for the project’s expansion. The Guardian reports that the value of the Horse Hill licence area peaked at £46 million in September 2018 after UKOG agreed to buy a 14.3% economic stake for £6.6 million. Industry estimates at the time suggested the site could contain around 9.24 billion barrels of oil in various rock formations. Public records show that UKOG invested more than £25 million in the site. Before selling the site for £1 million, the company had written down the value of its interests to just £55,360 on its balance sheet. UKOG has since rebranded as UK Energy Group and is now focusing on clean energy projects, including hydrogen storage and salt-cavern energy storage. Stephen Sanderson, CEO of the newly rebranded company, said the sale was a “timely and attractive opportunity” to exit the UK onshore oil and gas sector. UK Energy Group reportedly raised £1 million in 2025 to develop hydrogen-storage projects and an additional £500,000 for a proposed salt-cavern site in East Yorkshire. Guy Prince, from the energy transition thinktank Carbon Tracker, described the situation as an example of “regulatory stranding,” where climate-related legal actions and policy changes can drastically reduce the value of fossil fuel assets. He noted that such risks can have major financial consequences, especially for smaller companies focused on a single project. The new owner, Energy B, has taken over UKOG’s application to drill for oil in Surrey. Horse Hill Developments Ltd, now controlled by Energy B, submitted a renewed planning application in May for four production wells, a processing area, and other infrastructure. The proposal would allow nearly 700,000 tonnes of oil to be extracted over 20 years. Sarah Finch, the campaigner who successfully challenged the original planning decision in the Supreme Court, said the new environmental assessment in the application had “serious shortcomings.” She argued that the developer failed to consider the cumulative impact of all fossil fuel projects, despite available data. The application estimates that the development would result in about 2.3 million tonnes of greenhouse gas emissions over its lifetime, including from burning the extracted oil. However, the proposal claims this would be “insignificant,” as it would account for only 0.05% of the UK’s projected carbon budget. Finch dismissed this argument, stating that even small emissions are significant given the global goal to limit warming to 1.5°C. She also challenged the idea that the project would improve energy security, noting that domestically produced oil is typically sold on international markets rather than used by UK consumers. Surrey County Council is currently reviewing the application, with a formal consultation period ending on 13 July. Finch said the council’s decision would be a key test of whether climate risks are being properly assessed following the Supreme Court ruling. The Weald Action Group, which supported the legal challenge, has warned it may seek another judicial review if the council approves the development. UK Energy Group has not commented on the situation.