The exploration permit was revoked by the New Zealand Government’s Crown Minerals agency on the grounds that the Bounty-led consortium had not begun drilling in the agreed three-year timeframe.

But Bounty argued that its non-compliance was outside its control.

The ruling opens the way for Crown Minerals to grant the permit to international giants such as ExxonMobil, which has expressed interest in the frontier permit.

Bounty is currently consulting with its lawyers as to what further steps may be taken in connection with PEP 38215, but said at this stage the company was unlikely to pursue the matter further and the project would be written off.