An oil and gas company is waiting to clear another regulatory hurdle so it can drill an exploration well in West Lake Ainslie, Nova Scotia.

PetroWorth Resources Inc. was granted environmental approval last month, but it still needs approval to drill from the Nova Scotia Department of Energy.

A spokesperson for the department said Friday the company's application is still under review.

Toronto-based PetroWorth wants to drill a 1,200-metre vertical test well for oil near West Lake Ainslie in Cape Breton.

Some people who live in the area are worried the company plans to carry out hydraulic fracturing — known as fracking — a process where water, sand and chemicals are pumped into the ground, creating cracks in shale rock formations.

Karen White, a spokeswoman for the Department of Environment, said the approval granted July 29 only covers a conventional test well.

She said the company will have to develop a plan to deal with wastewater, sound restrictions and air quality levels.

"They're required to demonstrate that they do have measures in place to protect drinking water and the environment," she told CBC News on Friday.

PetroWorth's initial application is for a conventional well, but the company has not ruled out fracking.