Proactive Investors - Union Jack Oil PLC (LON:UJO) cheered a positive result for the Biscathorpe project, with the planning inspectorate upholding a previous successful appeal against the refusal of planning permission by Lincolnshire County Council.
The application was for a side-track drilling operation, associated testing and long-term oil production at the Biscathorpe-2 wellsite.
"I am delighted to report this highly positive news in respect of Biscathorpe, one of our highest ranked projects, in which Union Jack holds a material 45% economic interest,” executive chair David Bramhill said in a statement.
He added: "Union Jack`s technical team believe that Biscathorpe remains one of the largest unappraised conventional onshore discoveries within the UK.
“I thank shareholders for their patience and remain confident that both investors and the company will be well rewarded in due course."
Bramhill detailed meanwhile that the Biscathorpe-2 well encountered hydrocarbon shows and elevated gas readings, with some 68 metres of oil-bearing interval identified – whilst consultants confirmed an oil column comparable to that seen at Union Jack’s 55%-owned Keddington oilfield which is nearby.
Further analysis, meanwhile, indicated “a material and potentially commercially viable hydrocarbon resource remaining to be appraised”, Bramhill added.
He noted that around 6.5 million barrels of potential resources are so far estimated, with the project potentially having a break-even oil price of merely $18.07 per barrel.
Following the inspectorate decision, the project’s joint venture partners will now review the decision notice and associated planning conditions in detail before providing an update on plans for progressing operations.
Project operator Egdon Resources intends to engage with the local community to ensure activities have minimal impact on local amenity, Union Jack noted.