Angus Energy Plc (LON:ANGS) has told investors that production has begun from the Lidsey oil field.
Initial rates from the Great Oolite reservoir, the first of three reservoirs that are deemed ‘potentially viable’, were reported at 40 barrels per day.
READ: Angus Energy analysis of Lidsey delivers a ‘pleasant surprise’
The company said that the well’s output is below the expectations set out in its November 2016 competent persons report, though work is continuing to clean up the well.
“This project was delivered on time and on budget,” said Paul Vonk, Angus Energy managing director.
“Even with these initial flow rates, Lidsey-X2 provides commercial production and cash flow. We will continue to optimise production from the Great Oolite reservoir at Lidsey as we work to increase flow rates and we look forward to developing its additional reservoirs to enhance long run value for our shareholders."
Angus is now examining evidence which suggests part of the lower flow could be due to a hole in production tubing, and if proven there’s the possibility that remedial action could result in improved oil yield from the Great Oolite reservoir.
READ: Angus Energy asked to apply for planning permission for Brockham well
Similarly, the company is also going to conduct a thorough study which will aim to optimise and enhance production levels from the Great Oolite.
Angus will also file an addendum to its field development plan to the Oil and Gas Authority to start production appraisal of the Kimmeridge and Oxford layers at the Lidsey field.