Union Jack Oil PLC (AIM:UJO) told investors that the Wressle project has received regulatory approval allowing higher volumes of fluid to be handled at surface and at nearby water disposal facilities.
It effectively opens upside to production flows, which have been pegged to an average of 550 barrels of oil per day (bopd).
Consequently, the company said that from 14 December the surface pump has been incrementally increased – first to 670 bopd, then to 674 bopd on 17 December.
On-site, upgrade initiatives are ongoing, Meanwhile, on the desktop a new competent person's report (CPR) is anticipated in January.
"The issue of the EA permit is welcome news and is instrumental in the optimisation of oil production rates at Wressle,” Union Jack chair David Bramhill said in a statement.
"I believe that the installation of the jet pump and additional surface facilities at Wressle provide significant scope for a material upgrade in oil and gas production, further supporting the company's strong balance sheet for many years to come.
“I look forward to updating shareholders and the market with the updated Wressle CPR in January 2024 and on future oil production rates in due course."
Union Jack noted that the jet pump is capable of handling up to 1,400 barrels of fluid per day.
The AIM-quoted company owns a 40% stake in the Wressle field in Lincolnshire.