County councillors have been recommended to approve drilling for oil and gas in North Kelsey.
Egdon Resources has applied to extend its time at land off Smithfield Road in the region.
Members of Lincolnshire County Council’s planning committee will discuss the application on April 9.
The firm was handed permission to explore for hydrocarbons at the site in December 2014 for three years.
But the company blamed low oil prices and transferring of petroleum licences for its failure to complete work at the site.
Now Egdon is looking to extend its operations in North Kelsey until December 2020 in order to carry on the development.
Mark Abbott, managing director at Egdon, said: “Now that the oil price has returned to $60-70 a barrel it is, once more, a viable proposition.
“If permission is granted we intend to drill around the turn of the year and will work hard with neighbours and local landowners to minimise any disruption during our time on site.
“For clarity, this is a conventional exploration operation, like many that have taken place before in Lincolnshire, and which will not include any hydraulic fracturing either now or in the future.”
The council’s planning officer has recommended that councillors grant permission for the application.
Egdon is also expected to resubmit an application to drill for oil and gas in Wressle, North Lincolnshire.
It comes after North Lincolnshire Council’s planning committee twice rejected proposals for drilling in the region.
The government’s planning inspectorate also turned down the plans on appeal but upheld a decision for the firm to retain the well at Wressle.