IGas Energy plc has received permission for an initial oil appraisal well followed by up to six horizontal development wells at its new site near Glentworth, Lincolnshire.
PHASE I
The county council approved the plans, submitted at the end of 2022, for phase I and phase II of operations.
IGas’ proposals faced opposition from the local parish council and some residents of Glentworth village which lies mid-way between Lincoln and Scunthorpe.
The company said that phase I had the potential to add c.200 bbls/d and development of c.1.0 mmstb 2P reserves (currently 2P undeveloped).
“If phase I is successful, this will be followed by further development drilling in subsequent years with the subsequent development having the potential to add an additional 500bbls/d and the addition of c.2mmstb 2P reserves from 2C.
“Phase I of the project has a mid-case NPV of £17.5 million.”
IGas has submitted environmental permit applications to the Environment Agency.
TRANSITION
“It is important to recognise the continuing role of fossil fuels in providing for UK energy needs during the transition to a low carbon economy and developing indigenous resources is an important part of the UK’s future energy security,” added interim executive chairman Chris Hopkinson
“This will help us deliver on our strategy of pursuing lower risk, infill opportunities, bolstering our oil production whilst we invest in growing our market leading geothermal business.”