Decision had been expected by end of July
The Department of Infrastructure says it's continuing to assess the application by gas exploration company Crogga Limited to vary the terms of its licence by bringing forward the drilling of an appraisal well.
The company has been granted a short period of additional time to provide information relating to the variation request.
The three-month extension is aimed at allowing time for a variation of the so-called' Seaward Production Innovative Licence' to be fully considered.
At February's Tynwald sitting DoI Minister, Tim Crookall said a decision on Crogga's variation of licence request would be made by the end of June at the absolute latest, and more recently said a decision was expected by the end of July.
The licence currently requires the company to undertake a work programme as part of Phase B, which includes a 3D seismic survey, prior to moving to exploratory drilling in Phase C. The variation request would allow drilling on the basis of a 2D survey.
An appraisal well is drilled to assess the scale and economic viability of a gas deposit.