(Alliance News) - UK Oil & Gas PLC on Thursday said the Avington joint operating committee has formally agreed to restart oil production at the field in Hampshire, England.
Prior to its 2017 shut-in, the London-based exploration and production company focused on UK and Turkey said the Avingtin field produced 276,000 barrels with an estimated mid-case of 59 million barrels of original oil in place.
This would represent a recovery factor of just 0.5%, UK Oil & Gas said, adding: "As the three closest similar producing fields to Avington exhibit oil recoveries of around 6-13% of the assessed oil in place, potentially significant remaining recoverable oil resources lie within Avington for future exploitation."
The Avington field was granted new planning consent in December 2021, UK Oil & Gas said. It holds a 5% non-operated interest in the field and surrounding licence.
UK Oil & Gas said Avington operations will restart via a workover of its best performing well Avington-3z, which came on stream in 2007 and accounts for 81% of produced oil. A precise timeline on restarting operations was not disclosed.
"Given the five-year shut-in period, which potentially has permitted reservoir pressure around the well to build up, some element of 'flush' production (i.e. higher than the flow rate prior to shut-in) is expected upon production restart," the company added.
In late June, UK Oil & Gas said it secured a GBP3 million funding facility with RiverFort Global Opportunities PCC Ltd and YA II PN Ltd. At the time, it said the proceeds will fully fund working capital necessary to progress key planned activities over the next 12 months.
Shares in UK Oil & Gas were up 4.6% to 0.058 pence each in London on Thursday morning.
By Greg Rosenvinge, Alliance News reporter
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Uk Oil & Gas (UKOG)