LONDON (Alliance News) - The companies involved in the Wressle-1 well on the PEDL180 license in the UK on Thursday said they have received "encouraging results" from the flow tests being carried out on the Wingfield flags reservoir, and said they will start a production test afterwards.
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 in the operator of the license and said test operations have now been completed on the Wingfield Flags reservoir, the second of three potentially hydrocarbon bearing zones identified in the well.
Oil production rates for the Wressle-1 well reached 182 barrels of oil per day of "good quality" oil, along with 456,000 cubic feet of gas per day.
Initially, the well was producing 116 barrels of oil per day and 341,000 feet of gas, and then achieved the higher flow rate once the company fitted a wider choke onto the well.
A choke is a device incorporating an orifice that is used to control fluid flow rate or downstream system pressure on a well.
The Wingfield Flags interval will now be isolated with a bridge-plug, and test operations will continue on the final zone, the Penistone Flags, where hydrocarbons are indicated from log data and gas chromatograph analysis, said Egdon.
"Given the encouraging free-flow test results from the Ashover Grit and Wingfield Flags it is intended to undertake a longer term pumped production test subsequent to the completion of current test programme," said Egdon.
"We are progressing with plans for an extended well test to provide an assessment of longer-term production performance under pumped conditions, to confirm commerciality and provide the data required in planning for the development of the Wressle oil and gas discovery. As previously stated the low capital and operating cost of UK onshore developments make developments such as Wressle commercially attractive even in today's lower oil price environment," said Mark Abbott, managing director of Egdon.
Egdon shares rose by 3.4% to 9.44 pence per share on Thursday morning while Europa shares were up 12% to 6.45 pence per share. Union Jack shares however were down 0.7% to 0.243 pence per share.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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Europa Oil & Gas (EOG)
Union Jack (UJO)