Union Jack Oil PLC (AIM:UJO) said it has received approval from the East Riding Planning Committee for an expansion of drilling and production at the West Newton A site.
Separately, Union Jack added that an extension has been granted to allow further exploratory drilling at the West Newton B site.
The AIM-listed group added: “The current crisis has made even more clear the significant domestic oil and gas supply gap that will need to be filled either by further imports or new domestic production.
“The West Newton project is expected to support the security of supply, contribute to reducing the widening supply gap and bring meaningful local inward investment and employment to the East Riding, consistent with the government`s levelling-up agenda.”
Rathlin Energy, the operator at West Newton, had an application to add six more wells turned down last year but revised its plans to four wells, which has now been approved.
Opponents to the scheme cited the environmental impact and increased traffic, but Raithlin said it would address these concerns.
The approval comes just three days after an application to drill its North Kelsey-1 exploration well in Lincolnshire was refused by the county council.
Union Jack Oil, which has a 50% stake in North Kelsey, said it would appeal the decision.
Shares rose 25% to 26.5p.