Tamboran Resources had sought permission for the borehole in Belcoo using permitted developer rights, but they will now have to seek full planning permission with an accompanying environment statement.
The Assembly passed a motion in December 2011 that Ms Lo proposed, which called for a moratorium until independent scientific research was carried out.
Anna Lo MLA said: “Given the level of public concern about the proposal for an exploratory borehole in Fermanagh, it is appropriate that the Environment Minister will now require Tamboran to apply for full planning permission if they wish to go ahead.
“It is of paramount importance that independent scientific research is carried out before any approval is granted for hydraulic fracturing to take place.
“It would be irresponsible for us to let this process take place without knowing the long term consequences. Any negative impact on the local environment could be irreversible.
“The Assembly passed a motion which I proposed in December 2011 that called for such a moratorium, so I hope that the Executive will respect this decision and not grant any application for hydraulic fracturing until proper independent scientific research is carried out.”