In a blow to Sable Offshore's Santa Ynez project, a judge upholds the California Coastal Commission's order, prompting a 26.4% stock drop and investigations into potential investor claims by Faruqi & Faruqi, LLP.


NEW YORK, NY, October 27, 2025 /24-7PressRelease/ -- Sable Offshore Corp. faces significant setbacks following a recent California court ruling that blocks the company's efforts to resume operations on a key onshore pipeline linked to its Santa Ynez oil project. The decision, coupled with a sharp decline in the company's stock value, has sparked investor concerns, leading to an investigation by prominent securities law firm Faruqi & Faruqi, LLP.

According to a Reuters report dated October 15, 2025 (https://www.reuters.com/business/energy/california-judge-blocks-efforts-restart-santa-ynez-oil-pipeline-2025-10-14/), Judge Thomas Anderle of the Santa Barbara County Superior Court issued a tentative ruling denying Sable Offshore's request to overturn the California Coastal Commission's cease and desist order. This order halts repairs on the Las Flores Pipeline System, which is essential for transporting crude oil from the offshore Santa Ynez platforms to onshore refiners. The ruling emphasizes that Sable failed to prove the Commission abused its discretion, despite the company's arguments that the agency lacked authority to issue the order.

The Reuters article (https://www.reuters.com/business/energy/california-judge-blocks-efforts-restart-santa-ynez-oil-pipeline-2025-10-14/), highlights that Sable's shares plummeted 26.4% in premarket trading following the decision, underscoring the financial impact on the Houston-based firm, whose operations are solely centered on the Santa Ynez project. Originally shut down nearly a decade ago due to an oil spill under previous owner Exxon Mobil, the project saw partial restart in May 2025 with production from one platform. However, ongoing disputes with the Coastal Commission—stemming from unpermitted repairs since last year—have derailed full resumption. The Commission issued multiple cease and desist orders, including in November 2024, February 2025, and April 2025 after a public hearing.

Compounding these challenges, a BusinessWire release from Faruqi & Faruqi, LLP (https://www.businesswire.com/news/home/20250909476010/en/INVESTOR-ALERT-Faruqi-Faruqi-LLP-Investigates-Claims-on-Behalf-of-Investors-of-Sable-Offshore) announces an investigation into potential claims on behalf of Sable Offshore investors. The firm, known for recovering hundreds of millions for shareholders, is probing issues related to a May 28, 2025, court injunction aligning with the Coastal Act's regulations. This injunction, as detailed in an Investing.com article (https://www.investing.com/news/stock-market-news/sable-offshore-corp-stock-sinks-following-court-injunction-93CH-4068662) cited in the release, led to concerns over project delays and costs, causing Sable's stock to drop $5.04 per share—or 15.3%—closing at $27.89.

Faruqi & Faruqi, LLP (http://www.faruqilaw.com/) is a leading national securities law firm founded in 1995, dedicated to protecting investor rights. James (Josh) Wilson, Securities Litigation Partner at Faruqi & Faruqi, encourages affected investors to contact the firm directly. With offices across the U.S., the firm urges those with significant losses to explore options promptly.

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