LONDON (Alliance News) - The companies involved in the Wressle-1 well on the PEDL180 license in the UK on Monday said the well has achieved a flow rate of 80 barrels of oil per day and 47,000 cubic feet of gas per day after testing the first of three potentially hydrocarbon-bearing zones at the Wressle-1 oil discovery in East Lincolnshire.
The PEDL180 license is a partnership between four companies. Europa Oil and Gas (Holdings) PLC and Celtique Energie Petroleum Ltd hold 33.3% interests each. Union Jack Oil PLC holds a 8.3% stake in the license, and Egdon Resources PLC holds the remaining 25% interest.
Egdon is the operator of the license. It said it has completed operations on the Ashover Grit reservoir and said the oil encountered is "of good quality", with a gravity of 39 to 40 API. API Gravity is the oil industry standard used to determine and classify the density of oil.
Egdon will now analyse down-hole pressure data from the well to evaluate the permeability of the reservoir to determine the increased production rates that could be achieved during pumped production, it said in a statement.
Based on the free-flow test results from the Ashover Grit reservoir, Egdon will conduct a longer-term pumped production test once the on-going test programme has been completed, it said.
"Free flowing rates of 80 barrels of oil per day is a great start to testing operations at the Wressle discovery and indeed to our 2015 operations in the East Midlands," said High Mackay, chief executive of Europa.
"During this period of reduced oil prices, the low development and operating costs of onshore UK production means that discoveries such as Wressle remain commercially attractive," said Mark Abbott, managing director of Egdon.
Egdon shares rose by 5.2% to 9.20 pence per share on Monday morning, while Europa shares rose by 4.6% to 5.75 pence per share. Union Jack shares were down 1.7% to 0.244 pence per share.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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Europa Oil & Gas (EOG)
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