The Wressle field is expected to double Europa Oil & Gas Plc’s (LON:EOG) net production when it comes online in early 2017.
Wressle is being fast-tracked to production following a successful exploration well which delivered excellent flow rates in testing last summer.
A new third party assessment has now rubber stamped the field’s commerciality.
“Based on the results of this independent CPR, not only is Wressle expected to more than double our net production when it comes on stream in early 2017 at a gross rate of 500bopd, but it also substantially increases Europa’s asset backing,” said Hugh Mackay, Europa chief executive.
“In addition to the immediate boost to our proven reserves, the CPR highlights significant contingent resources in the Penistone Flags at Wressle and work will shortly commence on drawing up a development plan to monetise this reservoir.”
Project operator Egdon Resources Plc (LON:EDR) in a separate 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.
Egdon managing director Mark Abbott said: “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. ”
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.