Union Jack Oil PLC (AIM:UJO) has cheered a new expert report which upgraded the resource estimates for the Wressle field, in Lincolnshire, which is a result that the company described as “vindication” of the joint venture partners’ focus on maximising production and recoverable volumes.
A new competent person's report (CPR) for the Wressle project has upgraded the field’s estimated reserves by some 263% - with around 1.8 million barrels added to its inventory which now stands at 2.3 million barrels proved and probable.
Plus ‘ultimate recoverable reserves’ rose by 59% thanks to improved estimates of the Ashover Grit and Wingfield Flags reservoirs at Wressle.
Meanwhile, the review of resources for the Broughton North (an exploration prospect) saw prospective resource estimates boosted by some 23% to 608,000 barrels oil equivalent in the ‘best estimate’.
"The increase in Wressle's Reserves vindicates the focus by the JV partners management of the field's production to maximise recoverable volumes,” Union Jack chair David Bramhill said in a statement.
“This provides further support to the development approach we have undertaken to date.
"The installation of artificial lift on the Wressle-1 well marked the start of the next phase of Wressle's development, which will also focus on the export of gas production to the UK National Transmission System, recently approved by the joint venture.”
The report was produced by ERC Equipoise Limited (ERCE), commissioned by operator Egdon Resources, and it included the adoption of the 2018 ‘standard’ Petroleum Resources Management System for the classification and reporting of reserves and resources. It included the reclassification of inventory in the Penistone Flags reservoir into Proved and Probable (2P) reserves.
Estimates of recovery factors were prepared, based on consideration of the results of production performance analysis, reservoir simulation models, classical reservoir engineering calculations and the performances of analogue fields, the statement noted.
Production profiles were generated by ERCE for both reserves and contingent resources. Forecasts generated for reserves were used as input to an economic model to undertake an economic limit test and assess commerciality.
Bramhill added: “Following the identification of the material increase in reserves and resources, we look forward to 2024 with enthusiasm, where we expect to be able to continue to crystallise the potential additional value of Wressle for the benefit of UJO's shareholders."
Union Jack holds a 40% economic interest in Wressle alongside partners Egdon and Europa which each own 30%.