David Lenigas, the chairman of UK Oil & Gas Investments who claimed there may be “multiple billion barrels” of oil in an area near Gatwick airport, is stepping down from the board.

The Aim-listed resources group, which earned the nickname “Gatwick gusher” after Mr Lenigas’s comments, said on Wednesday that the Australian businessman was retiring to “focus on other business interests”.

Steve Sanderson, chief executive, will take on the role of executive chairman.

Mr Lenigas will stay on as a consultant for “at least four months to assist with this transition,” the company said in a stock exchange announcement.

UKOG’s penny shares rose by more than 200 per cent following Mr Lenigas’s comments about the possibility of vast oil resources in the Weald Basin in Horse Hill in Surrey, to 3p. They have since fallen significantly, and declined a further 2.3 per cent on Wednesday morning to 2.1p.

UKOG said in an April 9 stock exchange announcement that it had discovered “a possible world class potential resource” at Horse Hill, which it estimated at 158m barrels of oil per square mile.

Six days later, the company issued a clarifying statement — after an instruction from the London Stock Exchange to give further details — that the oil in place “should not be considered as either contingent or prospective resources or reserves”.

A “contingent” resource is an oil or gas asset where work is ongoing, and which is not yet considered ready for commercial development.

In Wednesday’s statement, Mr Lenigas said he was leaving UKOG because “it is my policy to step down from the boards of companies once I believe that they have reached a state of maturity where they require sector-experienced executive management to take over.”

He added “the progress the company has made is a source of great satisfaction and I feel confident that this is the right time to hand over the reins to a respected oil executive with high credentials who I believe will continue to drive the company forward.”

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