The company behind the project has announced that exploratory work for drilling for natural gas in Manx waters will not happen this year.
In October, Crogga intended to begin drilling an appraisal well after receiving permission to search for gas in the island's territorial waters.
Delays in developing regulations to grant consent for that have been attributed by the company to "political indecision.".
A request to modify the license was being evaluated, according to the government.
On behalf of the government, the Department of Infrastructure (DOI) issued the permit for the exploration.
The government's goal of achieving net-zero climate emissions by 2050, according to the project's detractors, is incompatible with allowing fossil fuel extraction.
The company revealed in January that Three60 Energy had been hired to drill an appraisal well 17 km (10 point 5 miles) off Maughold Head to determine how much gas is submerged there.
The company also started a subscription procedure to pay for the drilling, enabling the general public to invest in the undertaking.
However, it stated that it had "made the decision to return subscriptions to Independence Well Raise subscribers" in its June shareholder newsletter.
Although the fund raising had demonstrated "widespread" support from the Manx people, according to the company's chief executive officer Richard Hubbard, this "does not seem to be the case" within government ranks.
He added that some politicians and civil servants "appear reluctant to associate with drilling a gas well and without firm leadership.".
"In DOI, which is in charge of overseeing the Crogga licence, very little progress has been made. ".
The DOI stated that the implications of a proposal to modify the license's terms by delaying the drilling of an appraisal well and Crogga's ability to carry out this activity under the terms of the licence were being fully considered.
