British shale pioneer Cuadrilla Resources said it was "perplexed" by a regional council's decision to deny a planning application for pioneer well developments.

The company said it was denied a planning application to conduct seismic operations to get a better understanding of the resource potential at its Grange Hill site in Lancashire County, home to substantial potential reserves of shale natural gas.

"We are perplexed and disappointed by the decision," the company said in a statement.

There was no statement on the decision from Lancashire County itself on the permit application. Cuadrilla said the well operations did not involve any actual drilling or hydraulic fracturing operations. It received federal permits to move forward in Lancashire from the British Environment Agency earlier this month.

Donna Hume, a campaigner with the British Friends of the Earth advocacy group, said the council's decision is a blow to the fledgling shale campaign in the country.

"Refusing the application was the right decision by Lancashire County council, as it is clear that the people of Lancashire do not support shale gas extraction," she said in a statement. "The council must say no to fracking anywhere in Lancashire."

The British government said shale natural gas could be a low-carbon option that helps reduce the dependence on foreign suppliers.

Cuadrilla estimates there may be as much as 200 trillion cubic feet of shale natural gas in Lancashire.