Union Jack Oil plc has won its appeal before the Planning Inspectorate against the refusal of planning permission by the Lincolnshire County Council for a side-track drilling operation, associated testing and long-term oil production at the Biscathorpe-2 well site.
The United Kingdom-focused onshore hydrocarbon production, development and exploration company said in a media statement that, together with joint venture partners, it will review the decision notice and associated planning conditions in detail before providing an update on plans for progressing operations.
Furthermore, Union Jack said that the operator, Egdon Resources Ltd., will look to engage with the local community to ensure activities have minimal impact on local amenities.
The Biscathorpe project is covered by UK onshore license PEDL253. Union Jack holds a 45 percent economic interest in PEDL253, which, according to the company’s executive chairman, David Bramhill, is one of its highest-ranked projects.
“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 223 feet being interpreted as oil-bearing“, Bramhill said.
“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 percent economic interest“, added Bramhill.
He further noted that the re-processing of 101.9 square miles of 3D seismic data indicates 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“, said Bramhill, who stressed that Biscathorpe remains one of the largest unappraised conventional onshore discoveries in the UK.