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The Wressle well, in Lincolnshire, has again exceeded expectations as production testing yielded rates in excess of 180 barrels oil equivalent per day (bopd).
It is more good news for Egdon Resources (LON:EDR), the operator, as well as partners Europa Oil & Gas (LON:EOG) and Union Jack Oil (LON:UJO).
The well discovered a series of reservoirs and short initial tests earlier this year showed aggregated rates of around 700 barrels of oil equivalent per day (boepd).
Now, a longer production test on one zone, the Penistone Flags, confirms the project’s commercial potential.
At first the test yielded around 168 boepd - comprising 131 barrels of oil and 222,000 cubic feet of gas – while the reservoir was pumped over a period of three days; that equates to a gas-to-oil ratio (GOR) of 1,7000 cubic feet per barrel. Thereafter the gas rate increased, which led to the pump being stopped.
Without pumping the rate increased over a two day period to 182 boepd, comprising 105 bopd, 465,000 feet of gas.
Gas volumes actually began to reach the limits allowed by the site’s environmental permit, and consequently production testing from the Penistone Flags zone was halted.
At no point was any formation water produced from the well, it was confirmed.
Next, the partners will conduct an injection test for the Penistone Flags 3A interval.
It was initially planned that Penistone Flags would be the second test zone; however, problems with down-hole equipment meant the testing of the Ashover Grit zone was set back.
Ashover Grit will be the focus of work after the injection test, when the team will try to resolve the mechanical problems and proceed with pumped testing.
Hugh Mackay, Europa’s chief executive, said: “Based on the results seen to date and our 33.3% interest in the licence, Wressle has the potential to significantly increase our existing UK reserves, production and revenues and I look forward to providing further updates on our progress at the well.”
Mark Abbott, Egdon's managing director, meanwhile, said: “The hydrocarbon production rate of over 180 barrels of oil equivalent per day attained from the Penistone Flags oil zone has exceeded pre-test expectations.
“The production performance together with the planned injection test will provide valuable reservoir engineering data that will be used to plan for a commercial development of the Penistone Flags.”
Egdon has a 25% stake in the Wressle well and is the project operator, whereas Europa owns a 33% stake and Union Jack Oil has 8.3%. Privately owned Celtique Energie owns the other 33% of the project.
Europa’s house broker finnCAp described the results from the first stage of the extended well test as “excellent”.
“Stabilised flow rates of circa 182boe/d with no formation water being produced is much better than initially hoped. In addition, increasing rates of gas production now mean that the pump is no longer required and this will have positive cost implications later on,” noted finnCap’s Dougie Youngson.
Shares in Europa, which closed at 6.00p last night, were trading at 6.02p during the lunchtime session.