Northern Petroleum (GB) Ltd has been granted permission to start excavating for oil in ancient woodland at Markwells Wood in West Sussex, just five miles from Havant and two miles from Rowlands Castle, despite fierce objections from wildlife groups.
The site, which could yield five million barrels of oil, lies within an Area of Outstanding Natural Beauty.
Today conservationists and local campaigners condemned the decision, which will see the loss of about two-and-a-half acres of ancient forest, home to wildlife including badgers, weasels and bats.
Steve Marsh, from the Woodland Trust, said: 'This is basically vandalism of the natural world.
'These ancient woodlands are the equivalent of rainforests in Britain and the habitat has taken more than 400 years to evolve.'
West Sussex County Council has given a temporary three-year licence for the exploration site, including a drilling rig and an exploration well.
If the site goes into full production, the company is hoping to produce between one million and five million barrels of oil. The total for a North Sea rig can be up to 500m.
Although the site is 650 yards from the nearest home, local Forestside Councillor Julie Tassell had grave concerns.
Cllr Tassell said: 'I think the disruption to local people is going to be quite large. I can't imagine what it is going to be like when you have these great big lorries coming up and down.'
The decision is subject to a series of conditions, including restrictions on hours of working, noise, traffic and lighting.
County council planning officers recommended approval and said in a report there was a 'clear and overriding need' for oil exploration.
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