As foreshadowed today in the Newcastle Herald, Prime Minister Scott Morrison travelled to Terrigal this morning for the announcement.

PEP-11 is an exploration area covering more than 8000 square kilometres, held by two companies: Advent Energy Ltd with 85 per cent, and Bounty Oil and Gas NL with 15 per cent. Advent, in turn, is an unlisted oil and gas exploration company whose major shareholders are BPH Energy, Grandbridge and MEC Resources.

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The public face of the project has been the Perth-based chairman of Advent, David Breeze, who referred the Herald to a statement lodged at about 4pm today, Thursday, on the stock exchange.

The statement from shareholder 15 per cent shareholder Bounty Oil and Gas said it and the 85 per cent shareholder Advent Energy Ltd had not been officially notified by the National Offshore Petroleum Title Authority (NOPTA) of the refusal.

Bounty chief executive Philip Kelso stated: "Bounty will review this decision with the PEP 11 Joint Venture operator when we receive notification from NOPA."

Mr Morrison had earlier confirmed that the National Offshore Petroleum Titles Administrator (NOPTA) would grant the the applicants 30 days to respond to the notice of intention to refuse the application.

The main target of a multimillion-dollar drilling campaign inside PEP-11 would have been to search for gas, but Mr Breeze had also positioned the project as having carbon, capture and storage (CCS) potential, suggesting waste CO2 could have been pumped into the undersea basin.

As it happened, Advent shareholder BPH Energy issued an investor statement to the stock exchange on Tuesday, promoting the PEP-11 project given what appear to be sustained rises in the price of gas, as well as its purported CCS potential.

PEP-11 has been the subject of a concerted protest campaign, including mass paddle-outs of surfers to raise awareness of the prospect of coastal drilling rigs, which Mr Breeze insisted would have all been "over the horizon".

Early comments on the decision came from the environmental lobby group the Institute for Energy Economics and Financial Analysis (IEEFA), with gas analyst Bruce Robertson said the location of the area meant the licence should never have been granted in the first place.

"The way the government dragged it out the way it did and put people through angst having to oppose it, is ridiculous and a waste of people's time," Mr Robertson said.

"It shouldn't have got past the first base, it's a waste of hundreds of billions of dollars and should have been killed off at the beginning."

Mr Morrison said the government had told NSW Deputy Premier Paul Toole, as the joint authority partner, and the National Offshore Petroleum Titles Administrator (NOPTA), of the Commonwealth's intention to refuse the application.

"This project will not proceed on our watch," Mr Morrison said.

"Gas is an important part of Australia's current and future energy mix but this is not the right project for these communities and pristine beaches and waters."

Opposition leader Anthony Albanese said the decision was more than 300 days overdue and could have been made in February "with the stroke of a pen" by federal Resources Minister Keith Pitt.

He and Shortland MP Pat Conroy, who is also the opposition spokesperson on climate change, said the announcement had been delayed to suit the PM's "short-term political prospects".

"He has surrendered to the massive campaign ran by the community and Labor to stop this awful project," the Labor pair said in a statement.

Environmental groups and activist surfers are playing major roles in fomenting opposition to any new offshore oil or gas exploration or production projects in Australia.

In February last year Norwegian company Equinor pulled the pin on its $200-million plan to drill for oil off the Great Australian Bight.

This time around they have combined with Independent Member for Warringah, Zali Steggall, to campaign against PEP-11.

Surfers For Climate co-director, the Newcastle-raised Belinda Baggs, thanked the federal government for "listening to our calls".

"After years of campaigning against this polluting project, my heart is full to know that the community's passion for the ocean and care for our climate has overcome the petroleum industry," Ms Baggs said.

"We have all stepped up and protected our shared aquatic backyard."

Surfrider Foundation national campaign director Damien Cole said the decision was "a historic win for coastal communities" and showed "the power we have when we come together for a common cause".

Liberal candidate for Paterson Brooke Vitnell, who appeared with Mr Morrison at the announcement, said the prime minister first expressed his opposition to PEP-11 during a visit to the Paterson electorate and had "put the people of the Hunter first".

"This is a decision I not only strongly support and one that reflects the broader view of the Port Stephens community," Ms Vitnell said.

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