Councillors will now go on a site visit after concerns were raised about the impact of operations on local residents.
Egdon had originally been granted permission to explore for hydrocarbons at the site in 2014.
But the firm blamed low petrol prices and changing of licences for its failure to complete work at the site.
Paul Foster, speaking on behalf of Egdon, said that the low prices affected plans for construction.
“Oil prices have been on a rollercoaster since 2014,” he said.
“That means that the appetite for exploration has wained.
“The company requires a further three years to complete the works and if we find oil then we would need to submit a separate application.”
But Councillor David Brailsford raised concern about the state of Smithfield Road following a further three years.
“I do share the concerns of local residents,” he said.
“There’s no guarantee that if we grant permission that in three years time there will not be another application.
“I just wonder at what state will the road be in?”
The council’s planning officer had recommended granting 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
The Lincolnite welcomes your views. All comments are reactively-moderated and must obey the house rules. Please stay on topic and be respectful of other readers.
A Lincoln resident is frustrated with vehicles parking on single yellow lines on Lincoln High Street, while the county council says the current regulation order means it’s unable to enforce the area properly, despite signage saying cars cannot park there.
Richard Bridgen has been living off Riverside Drive in Lincoln for around five years now, and over recent months he has noticed a particular trend around parking on a section of the High Street, which can impede his view as he tries to turn from Gaunt Street.
Lincoln residents in the Boultham area have become increasingly hesitant to report crime, citing concerns that the shortage in police staffing will lead to a lack of response.
Lincolnshire County Councillor Kevin Clarke (Labour) reports being contacted by multiple residents in the last few months who have suffered break-ins at their homes or gardens. Despite these incidents, they claim to have received minimal support from Lincolnshire Police.