LONDON - British oil and gas exploration company IGas Energy said on Monday it has been granted planning consent to develop a new oil well site in Lincolnshire.
The site is close to IGas' existing Glentworth-K site which has been producing oil for 60 years.
Lincolnshire county council has granted planning permission for an initial appraisal well and up to six horizontal development wells in the second phase of the development.
The first phase has the potential to add around 200 barrels a day (bbl/d) of oil and the second phase could add a further 500 bbl/d, IGas said in a statement.
The first phase has a mid-case net present value of 17.5 million pounds ($21.7 million), it added.
The oil produced at the site will be sold to a domestic refinery. The new well site could produce oil for up for 21 years, the company said on its website.
($1 = 0.8058 pounds)
(Reporting by Nina Chestney; Editing by Susan Fenton)