The permit in the offshore Sydney Basin is held by Advent Energy (85%) and Bounty Oil and Gas (15%). Advent is held by BPH Energy, MEC Resources and Grandbridge. All share director Dave Breeze.
The permit expired in February with the joint venture waiting on state and federal authorities to approve its extension so it could begin exploration.
BPH told the market today that while the PM made the announcement, it has not at this point received official notification of refusal from the National Offshore Petroleum Title Authority.
"BPH will review this decision with PEP11 JV participant, Bounty, when we receive official notification from NOPTA," Breeze said.
According to the PM's statement NOPTA will grant the JV 30 days to respond to the notice of intention to refuse the applicaiton.
APPEA CEO Andrew McConville said he was disappointed the government did not approve the application to extend the permit.
"Exploration plays a vital role in identifying and developing new energy resources that can create jobs and additional reliable supply that can keep gas prices at affordable levels. The best gas is the gas closest to customers, he said.
"Australia has an abundance of natural gas resources and operates under a comprehensive regulatory regime for titles administration, safety and environmental protection.
"Decisions regarding exploration permits should always be made in accordance and within the framework of that regulatory regime."
McConville referred to an independent audit of the offshore regulator, NOPSEMA, by Australia's chief scientist Alan Finkel, which found "NOPSEMA to be a highly skilled, professional and competent regulator. NOPSEMA has appropriate processes, guidance material and practices to ensure environment plans are assessed against relevant, sufficient and complete scientific and technical information referenced by titleholders".
"We support the established regulatory process for tenure administration, environmental and safety approvals," McConville said.
The project, which would have seen gas wildcat Seablue-1 drilled, had not got to the point where NOPSEMA was assessing its environmental plan, although Xodus had been contracted for some of that work.
Gas analyst at pro-renewables group Institute for Energy Economic and Financial Analysis Bruce Robertson however said the license should never have been granted.
"It is actually one of the best examples of failure of the planning system. To grant a petroleum license is ridiculous - what's next, will they want to drill off the Opera House? - it's absurd.
The permit's joint venture has been bullish all year over its development, however it lost the support of several Liberal and one National MP fearing voter backlash in the affluent beachside area.
In March, Morrison said it was "pretty clear" he did not support the planned gas development. Liberal MPs Jason Falnisky, Trent Zimmerman and Dave Sharma have also expressed their opposition to it as well as former deputy premier John Barilaro.
"We said this would happen and now it has," Falinksy said today.
"This is a welcome first step to ending this project once and for all. The beaches and habitats on the northern beaches are too important to put at any risk and I have been pushing hard in Canberra to see PEP-11 stopped."
A petition protesting the development has garnered 60,000 signatures and was delivered to parliament last year by independent MP Zali Steggall, who holds the NSW Warringah electorate.
Steggall told Energy News she welcomed today's announcement.
"The coastal communities have worked hard to keep this on the agenda, and they have prevailed," she said.
"This win will protect our coastline from oil and gas drilling - including the wildlife, beaches and surf breaks it would endanger."
