Proactive Investors - Union Jack Oil PLC (LON:UJO) told investors that plans for the West Newton project have been approved by the UK Environment Agency and detailed planning is now underway for a well in 2024.
The company, in a statement, said the Environment Agency has issued the variation of the permit for the West Newton B well site, which allows for the use of oil-based fluids within the Permian formations during drilling and testing operations.
It added that independent technical studies have clearly demonstrated that the use of oil-based drilling fluids will be a key factor in enhancing flow rates from wells drilled in the West Newton field.
The partners in the project are now working on plans for a proposed horizontal well from the West Newton B site, with the programme slated for the first half of 2024.
"A future West Newton development will benefit from being located in an area that provides access to substantial regional infrastructure and could deliver significant volumes of on-shore low-carbon sales gas into the UK's energy market,” said Union Jack executive chair David Bramhill.
"Domestically produced natural gas will remain a much-needed part of the energy mix, as the UK seeks to reduce its reliance on imported products.
"Union Jack looks forward to the drilling of a 1,500-metre horizontal well and unlocking the significant potential of the West Newton project."
West Newton was estimated in a 2022 report to host some 197.6 billion cubic feet of technically recoverable gas resources and the project was estimated to have an 86% "geological chance of success".