(Alliance News) - Small cap oil minors Egdon Resources PLC, Union Jack Oil PLC and Europa Oil & Gas Holdings PLC all noted Wednesday positive downhole pressure data from Wressle-1 well, which is located in North Lincolnshire on the east coast of England.
Egdon and Europa each hold a 30% interest in the well, while Union holds a 40% stake.
The study by ERCE, an independent energy consultancy, showed that higher rates than are currently possible could be realised if various constraints on gas production are alleviated.
The study estimated that a rate of 1,216 barrels of oil per day could be reached, while maintaining a flowing bottom hole pressure above the oil saturation pressure, or bubble point.
Meanwhile, at 300 pounds per square inch in gauge flowing tubing head pressure, the study estimates the well could flow at a rate of 1,543 bopd whilst at the oil bubble point.
In mid-December, the well was producing at around 666 bopd.
Europa Chief Executive Simon Oddie said: "The operator is now advancing plans to allow production of the well to meet its full potential as soon as possible."
Egdon Managing Director Mark Abbott said: "We continue to work to realise the full commercial potential of the Wressle field. This will be achieved through optimising the production facilities, progressing options for gas monetisation and advancing the development plan for production from the Wingfield Flags and Penistone Flags reservoirs. In the meantime, the asset continues to generate material cash flow that has transformed the company's financial outlook."
Egdon shares leapt 17% to 1.82 pence each in London on Wednesday around midday. Europa was up 11% to 1.67p each, while Union Jack was flat at 15.50p.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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Europa Oil & Gas (EOG)
Union Jack (UJO)