Europa Oil & Gas (Holdings) PLC (AIM:EOG) chief executive Simon Oddie eyes a significant opportunity to generate further value from the Wressle field as partners plan work programmes to ensure the onshore Lincolnshire oil field reaches its full potential.
Wressle has had cumulative production of 341,000 barrels (as of 12 January 2023), Europa highlighted in a statement, and it is presently yielding between 825 and 850 barrels of oil per day, which remains significantly higher than the original expectations for the well.
"The Wressle oilfield continues to outperform expectations, generating high levels of production and revenues,” Oddie said in a statement.
“Europa remains committed to advancing the development plan and consenting process alongside partners Egdon and Union Jack Oil to enable production from the Penistone Flags reservoir, whilst planned gas monetisation solutions will not only enhance production from Wressle and substantially increase revenues, but also eliminate flaring.”
In parallel statements, Wressle partners Egdon Resources PLC (AIM:EDR) and Union Jack Oil PLC (AIM:UJO) similarly highlighted active plans to upgrade Wressle in 2023.
The installation of microturbines to monetise gas flows will add to revenues but also support better oil production as it will take care of constraints related to gas-flaring, which will no longer be necessary. It is expected that this alone could boost oil production by around 20%.
At the same time, the Wressle partners are progressing plans to drill a new well at the field with the Penistone Flags development well slated for the second half of 2023 subject to regulatory and planning consents.
Also underway is a new competent persons report, which will incorporate the data from a successful 2022, including “the new field interpretation and exceptional production performance”, Europa said.