The Wressle oil field has produced at its targeted rate of 500 barrels in testing, boosting the prospects for AIM-quoted stakeholders () and Europa Oil & Gas (Holdings) PLC ().
Union Jack, in a statement, noted that the rate was achieved in the tests which followed a ‘proppant squeeze’ operation that stimulated the Wressle-1 well.
Clean-up continues and Union Jack highlighted that the well has not yet reached its optimum potential. It expects a further announcement will come once a stabilised oil flow rate is established in the coming weeks.
“I am, of course, delighted with the outcome of the proppant squeeze operation which has enabled the Wressle-1 discovery to deliver the expected production rate of 500 barrels of oil per day from the Ashover Grit reservoir, the lowest reservoir interval in the original discovery well,” said David Bramhill, Union Jack executive chairman.
“At a full production rate of 500 barrels of oil per day, Wressle, at current oil prices would transform the economics of the company with a materially positive impact on our revenues and operating cashflow.”
Bramhill added: “Union Jack Management are of the opinion that Wressle is still at a very early stage in its development and that considerable upside potential remains given the higher Wingfield Flags and Penistone Flags reservoirs, that are not part of this test programme, have both already demonstrated their ability to flow oil to surface during testing of the original discovery well, as well as other opportunities within the licence areas.”
Union Jack is the largest stakeholder in the joint venture project, alongside operator Egdon Resources which owns 30% and Europa which has the other 30%.
Europa chief executive Simon Oddie separately commented: “Achieving the targeted 500 barrels of oil per day production rate at Wressle is an excellent outcome.”
“While oil production will be optimised in the coming weeks as the reservoir continues to clean-up, a gross rate of 500 bopd at Wressle more than doubles Europa’s existing UK onshore production to over 200 bopd.
“At current oil prices of over US$65 per barrel, this step-up in net production will transform Europa’s financial profile and in turn provide a strong platform from which to grow the company further.”