(Alliance News) - Europa Oil & Gas Holdings PLC and Union Jack Oil PLC on Tuesday said that production had increased at the UK onshore Wressle-1 well.
Europa Oil & Gas, an Ireland-focused oil and gas exploration company, holds a 30% stake in the well, whereas Union Jack Oil, a Bath-based gas and oil development company, holds a 40% stake.
The two companies received approval from an environmental agency, permitting higher volumes of fluid to be handled at surface and nearby water disposal facilities.
Till now, production rates at the onshore UK Wressle oilfield were capped at 550 barrels of oil per day due to constrained surface jet pump rates.
Following environmental agency approval, however, the surface pump rate has been increased since December 14, with a 24-hour production rate on December 18 of 680 bopd.
The jet pump is capable of handling up to 1,440 barrels of fluid per day, and is being carefully monitored to determine the ideal pump rate for oil production. It is expected that a few weeks will pass before the well stabilises and an optimal production rate is achieved.
Europa Chief Executive Officer Will Holland said: "With the necessary environmental agency permit now in place to allow us to utilise the capability of the jet pump, it is good to see the well responding so well to the increased pump rate. I believe that the [Wressle] well has the potential to deliver stable production at materially higher levels than the 550 bopd level we were producing at and the current rate of 680 bopd is very encouraging."
Union Jack Oil Executive Chair David Bramhill said: "I believe that the installation of the jet pump and additional surface facilities at Wressle provide significant scope for a material upgrade in oil and gas production, further supporting the company's strong balance sheet for many years to come."
In London on Tuesday morning shares in Europa Oil & Gas were down 1.4% at 1.09 pence each, while Union Jack Oil shares were up 1.0% at 19.19 pence each.
By Hugh Cameron, Alliance News reporter
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Europa Oil & Gas (EOG)
Union Jack (UJO)