Union Jack Oil PLC (LON:UJO) has noted an announcement from Egdon Resources PLC (LON:EDR) that planning permission to drill a conventional exploratory oil well at the North Kelsey-1 site in the PEDL241 licence has been approved by the Lincolnshire County Council Planning Committee.
AIM-listed Union Jack, which owns a 20% interest in PEDL241, also said the North Kelsey prospect has been mapped from 3-Dimensional seismic data and has potential for oil in up to four stacked conventional Carboniferous reservoir targets: the Chatsworth Grit, Beacon Hill Flags, Raventhorpe Sandstone and Santon Sandstone.
READ: Union Jack Oil notes partners at Biscathorpe end dispute as settlement is received
Egdon has also calculated that the prospective resources range from 4.66mln barrels up to 8.47mln barrels, with a mean resource volume of 6.47mln barrels.
"We are naturally pleased at this positive decision. Drilling plans can now be progressed for 2021, providing an additional potentially value adding project to our drilling and development portfolio", Union Jack Oil executive chairman David Bramhill said in a statement.
Shares in Union Jack were 5.3% lower at 0.22p in late-afternoon trading on Monday.