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(Alliance News) - Oil companies Egdon Resources PLC, Union Jack Oil PLC and Europa Oil & Gas Holdings PLC noted that the Wressle oil field in Lincolnshire has hit previously forecast production levels, with the field set to boost the financials of all three firms.
Union Jack Oil holds a 40% stake in Wressle while Europa Oil holds a 30% stake. Egdon holds the remaining 30% stake and is the operator of the field.
Egdon said that the coiled tubing operation, mentioned in a release by the company towards the end of July, has now been completed "safely and successfully" and the Ashover Grit reservoir has been returned to flow, under extended well testing operations.
Measured flow rates have exceeded 500 barrels of oil per day under a restricted choke setting, which was the forecast rate.
Egdon shares rose 9.4% to 1.45 pence each in London on Tuesday morning. Union Jack's stock added 2.7% to 34.92p each, while Europa rose 0.7% to 1.51p each.
Egdon Managing Director Mark Abbott said: "Oil production will be optimised whilst the Ashover Grit reservoir continues to clean-up. With this additional 150 barrels of oil per day net to Egdon and the current strong oil price, Wressle will have a transformational impact on Egdon's near-term cash flow."
A barrel of Brent crude oil fetched USD69.52 on Tuesday morning in London, up 34% from USD51.80 at December 31, 2020.
Union Jack Chair David Bramhill as well Europa Chief Executive Simon Oddie similarly said that Wressle will "transform" the economics of both companies for the better.
Bramhil said it will have "a materially positive impact" on Union Jack's revenues, while Europa's Oddie said the field will "provide a strong platform from which to grow the company further".
By Greg Roxburgh; gregroxburgh@alliancenews.com
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