(Alliance News) - Oil & gas companies Europa Oil & Gas Holdings PLC, Union Jack Oil PLC and Egdon Resources PLC on Monday noted that the Wressle Oil Field Development is on track for first oil by the end of January.
Europa is a UK, Ireland and Morocco-focused oil firm, while Egdon and Union Jack Oil are focused on the UK.
Wressle is an onshore oil well located six miles to the east of Scunthorpe in North Lincolnshire, England.
Union Jack holds a 40% interest in the asset, while Egdon and Europa each hold 30%.
Union Jack said that the workover rig and associated services and equipment were successfully mobilised to Wressle last week, and operations to recomplete and reperforate the well have commenced.
Wressle is expected to commence production from the Ashover Grit reservoir at the end of January, according to the three companies.
The well will start producing at a constrained gross rate of 500 barrels of oil per day.
Egdon's and Europa's production will increase by 150 barrels of oil per day, and Union Jack's will increase by an additional 200 barrels of oil per day, once Wressle is fully on stream.
Europa noted that this would more-than-double its existing UK onshore production to over 200 barrels of oil per day.
Europa Chief Executive Simon Oddie said: "With oil prices trading above USD50 per barrel, far above the USD17.6 per barrel required for the field to break even, we are keen to bring Wressle into production at the earliest opportunity, so the commencement of operations at the site is most welcome. I look forward to providing further updates on progress made at the field as we target first oil by the end of the month."
Brent crude was trading at USD55.23 per barrel on Monday morning in London.
On Monday morning in London, Europa shares were up 8.6% at 9.50 pence each; Egdon shares were up 8.4% at 1.74p each; while Union Jack Oil shares down 7.4% at 0.18p each.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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Europa Oil & Gas (EOG)
Union Jack (UJO)