Union Jack Oil PLC (LON:UJO) told investors that project operator Egdon Resources Ltd (LON:ED) has received an environmental permit for the Biscathorpe-2 conventional exploration well, in Lincolnshire.
UJO has a 12% stake in the Biscathorpe well, located between the towns of Lincoln and Louth. Operations are expected to start in late 2017.
The Biscathorpe-2 well is targeting a prospect ‘down-dip’ from a 1987 well which encountered oil in a 1.2 metre thick sandstone zone. The idea is that in the Biscathorpe-2 location the sandstone will be thicker and deeper – this view is supported by analysis of modern 3D seismic data.
The well will be drilled down to a depth of 2,100 metres, the target has been estimated in the order of 14mln barrels and the chance of success is set at 40%.
Egdon’s exploration ambitions for Biscathorpe come at the same time as the group’s most recent Lincolnshire discovery is stalling in the planning phase – with the North Lincolnshire Council twice denying the group planning permission for an oil field on the Wressle discovery.
Egdon to appeal second Lincolnshire planning refusal for Wressle
The planning refusals, decided by the council’s planning committee, came despite recommendations from planning officers in the company’s favour.
Earlier on Thursday, Egdon announced that it intended to appeal the second planning refusal.
UJO has a 15% stake in the project, which could be brought into production following exploration and testing successes. Egdon is the operator, owning 25% of the project, and the other partners include Europa Oil & Gas (LON:EOG) with 30% presently and Celtique Energie Petroleum with 30%.
An existing appeal, against the first planning refusal, is due for early November and Egdon is expected to request that the second appeal is co-joined to the first appeal.
In a statement, UJO chairman David Bramhill said: “The first Planning Application submitted by Egdon met the information thresholds of both the planning officer and the statutory consultees.
“The second application, which we believe addresses all the planning concerns raised by the planning committee in their initial refusal, post-dated the issue of the Environment Agency permit and satisfied all the conditions of the planning officer and statutory consultees."