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(Sharecast News) - Union Jack Oil announced a favourable decision from the Planning Inspectorate regarding its appeal for planning permission at the Biscathorpe-2 well site in Lincolnshire on Monday.
The AIM-traded firm said the decision overturned the earlier refusal by Lincolnshire County Council for a side-track drilling operation, associated testing, and long-term oil production.
It said the joint venture partnership at Biscathorpe, onshore UK licence PEDL253, would conduct a thorough review of the decision notice and associated planning conditions.
After that, the operator Egdon Resources would engage with the local community to ensure the activities had minimal impact on the local amenity.
Union Jack Oil holds a 45% economic interest in PEDL253.
"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," said executive chairman David Bramhill.
"While drilling the Biscathorpe-2 well, there were hydrocarbon shows, elevated gas readings and sample fluorescence observed over the entire interval from the top of the Dinantian to the total depth of the well, with 68 metres being interpreted as oil-bearing.
"Independent consultants Applied Petroleum Technology also conducted analyses, confirming a hydrocarbon column of 33-34 API gravity oil, comparable with the oil produced at the nearby Keddington oilfield where Union Jack holds a 55% economic interest."
Bramhill said the re-processing of 264 square kilometres of 3D seismic indicated a material and potentially commercially viable hydrocarbon resource remaining to be appraised.
"The operator has assessed, in accordance with the PRMS Standard, gross mean prospective resources of approximately 6.5 million barrels of oil.
"Commercial screening has indicated break-even full cycle economics to be $18.07 per barrel of oil.
"Union Jack's technical team believe that Biscathorpe remains one of the largest unappraised conventional onshore discoveries within the UK."
Reporting by Josh White for Sharecast.com.
