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Energy supplier drills for new oil reserve in Lincolnshire - 17/11/2009

Consumers could find they are able to compare energy rates from more sources if an oil exploration project in Lincolnshire yields results.

Europa Oil and Gas believes it has identified a potential new oilfield in Lincolnshire only 100 yards from a wildlife reserve and is expected to produce initial test results on the site in the next few weeks, reports the Telegraph.

A range of safeguards have been put in place to protect the nearby Whisby nature reserve, with no drilling to take place during the bird-breeding season and earth banks to be built once the project is complete.

Paul Barrett, Europa managing director, told the paper: "We should be able to recover up to five million barrels at first, with the well capable of flowing a couple of hundred barrels a day initially."

It is thought the new reserve could produce 20 million barrels of oil altogether, worth about £1 billion.

The North Sea has been the source of much of the UK's oil supply for many years.

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