Europa Oil & Gas (Holdings) PLC (AIM:EOG) chief executive Will Holland told investors the company expects Wressle oil field recoveries to ultimately be at the top end of estimates.
The assertion comes as the field showed the "long awaited" start of water coming into its oil flows.
Europa noted that the beginning of water flow has come significantly later than originally anticipated at Wressle, which it said is further evidence that the expected recoverable volumes from the Ashover Grit will be at the higher end of the estimates (540,000 to 1.12 million barrels, according to 2016 estimates).
Cumulative production from Wressle reached 492,876 barrels of oil by the end of July, Europa noted in a statement.
"The contribution of formation water has been long expected at the W1 well and we are prepared to handle the water,” Holland said.
He added: “The size of the oil accumulation within the Ashover Grit formation is still expected to be at the top end of the original CPR estimate and I look forward to updating the market with the updated reserves once the new production data has been incorporated into the dynamic reservoir model.
“This will ensure that the second development well is drilled in the optimal location and that the recovery rate is maximised."