Oil company keen to start drilling near Broughton
DRILLING for oil and gas in North Lincolnshire is to be stepped up following a successful geophysical seismic survey by prospectors.
Mark Abbott, managing director of Egdon Resources UK, confirmed a planning application was being submitted to start drilling on a site to the north of Broughton.
It is expected if drilling in the Broughton area is a success, the new well could produce 14,600 barrels of oil in its first year – although no figures have been revealed on how much this might equate to in cash.
Last year, Egdon reported revenue from oil and gas sales had increased by 9.9 per cent to £2.61 million, but the company revealed a trading loss of £2.89 million.
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Mr Abbott said: "We have concluded our technical work and are planning to submit an application to drill a prospect called Wressle in the near future."
The Hampshire-based Egdon boss said at this stage he was unable to disclose further details until talks with interested parties had been completed.
But last November, the prospectors announced the terms for site leases had been agreed, with a view to start the drilling in the second quarter of 2013.
Mr Abbott said: "Our proposal is to drill a conventional exploratory borehole like the many hundreds previously drilled throughout the region.
"I would like to reassure people that we have no plans to carry out hydraulic fracking.
"Interested parties will of course have the chance to comment on our detailed proposals as part of the normal consultation process once the application is submitted."
Drilling on other sites at North Kelsey and two other locations in the wider region will form part of a second programme planned to start later this year or early next.
The Scunthorpe Telegraph first revealed the search for potential oil and gas reserves in eight village and town locations across North Lincolnshire a year ago.
Egdon representatives are to explain the plans at a meeting of Broughton Town Council on Monday (January 28).
Councillor Arthur Bunyan, who also represents Broughton and Appleby on North Lincolnshire Council, said: "I am fairly open to the idea if it is something that will help the economy.
"I don't think the area where it is planned to take place will disturb residents and it seems suitable as it is out the way.
"There is certainly a need for it if it helps the economy.
"I am open minded to it at the moment with the current information I have."