The Wressle oil field in Lincolnshire has been confirmed as commercially viable by a new third party assessment.
Wressle is being fast-tracked to production following a successful exploration well which delivered excellent flow testing results last summer.
Project operator Egdon Resources (LON:EDR) in a statement highlighted that the new estimate - 14.18mln barrels of oil initially in place, of which 2.15mln barrels is considered discovered - had exceeded its expectations.
“The CPR has independently confirmed the commercial viability of the Wressle field development with overall oil and gas Reserves and Contingent Resources exceeding our original pre-drill estimates,” said Mark Abbott, Egdon Resources managing director.
Egdon Resources owns 25% of Wressle, whilst AIM quoted peers Europa Oil & Gas Plc (LON:EOG) and Union Jack Oil PLC (LON:UJO) have 33.34% and 8.33% respectively. Privately owned Celtique Energie has the other 33.3% of the project.
Wressle oil is found across three reservoirs; the Ashover Grit, Wingfield Flags and Penistone Flags.
Some 620,000 barrels of oil are classified as proved and probably (2P) reserves, and that oil is the basis of the initial field development plan. The reserves are from the Ashover Grit and Wingfield Flags, whereas 1.53mln barrels of contingent resources as estimated in the Penistone Flags reservoir interval.
Production is expected to focus on the Ashover Grit, and it is expected to include the monetisation of gas flows into pipeline infrastructure.
Ashover Grit is expected to deliver gross production rates of around 500 barrels per day by early 2017.
Egdon added that the nearby Broughton North field, located immediately to the north-west in a fault block, is now see as a relatively low risk - 40-49% chance of success – near term drill target.
Broughton North has also been evaluated and it is estimated to host some 3.43mln barrels of oil in the Ashover Grit and Penistone Flags reservoir sands.