IGas Energy has secured the planning approval for the development of a new oil well in the village of Glentworth, in the West Lindsey district of Lincolnshire, England.
The Lincolnshire County Council has granted the planning approval.
The proposed new well site is located about 2.3km from Glentworth and less than 0.5km from the company’s existing Glentworth-K well site which has been operating since 2011.
The first phase of the development is estimated to add around 200 barrels per day and nearly 1.0mmstb 2P reserves and have a mid-case net present value (NPV) of £17.5m.
Based on the success of Phase 1, further development drilling is planned in subsequent years.
The UK-based oil and gas company intends to develop an initial appraisal well and up to six horizontal development wells, as part of the Phase 2 development.
The Phase 2 development has the potential to add about 500 barrels per day of production, along with nearly 2mmstb 2P reserves from 2C, said the company.
IGas has submitted environmental permit applications related to the project, along with permits required before the operations can commence, to the Environment Agency.
IGas interim executive chairman Chris Hopkinson said: “I am pleased that the Committee has made this positive determination following the recommendation by the Planning Officer.
“It is important to recognise the continuing role of fossil fuels in providing for UK energy needs during the transition to a low carbon economy and developing indigenous resources is an important part of the UK’s future energy security.”
According to a BBC news report, environmental campaign activists and a few local residents initially objected to the plans and raised concerns and fears regarding the increase in traffic.
Lincolnshire County Council highways officers initially objected to the plans but later withdrew after the developer agreed to improve the roads around the site.
The exploratory work would require more than 10 months and production testing will require additional 12 months, said the publication.
