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Europa Oil & Gas says drilling of Wressle-1 well a prelude to exciting period for company

Europa Oil & Gas said the drilling of the Egdon Resources-operated (LON:EGD) Wressle-1 well in Lincolnshire began on Saturday.
Europa Oil & Gas says drilling of Wressle-1 well a prelude to exciting period for company

Europa Oil & Gas (LON:EOG) said the drilling of the Egdon Resources-operated (LON:EGD) Wressle-1 well in Lincolnshire began on Saturday.

Targeting 2.1mln barrels of oil, it will go to a depth of 2,300 metres and should be completed in 38 days.

With a one-in-three chance of success, Wressle has the potential to add materially to Egdon’s inventory.

The AIM-listed group has a 33.3% stake, Egdon 25%, Celtique Petroleum 33.3% and Union Jack Oil & Gas 8.3%.

Chief executive Hugh Mackay told investors: “Thanks to the progress made across our portfolio in recent months, Wressle is the first of what we believe will be a multi-well drilling programme over the course of the next eighteen months. 

“Wressle will be followed by the 2.9mln-barrel Kiln Lane prospect on the neighbouring licence, which remains on track to spud in the fourth quarter this year. 

“Work undertaken to date includes the submission of the relevant planning application, negotiations completed and a lease signed for a suitable well site, engagement with the Environment Agency to secure a mining waste permit and procurement of long lead items of drilling equipment.”

In a wide-ranging update, Europa said had been “encouraged by what they have seen” on the 3D seismic acquired on the two licences in the South Porcupine Basin, offshore Ireland, operated by exploration giant Kosmos.

Mackay said success in Ireland would be “a company maker”. 

A new prospect inventory will be delivered in the fourth quarter, while the first well could be spudded either next year or the year after. 

Europa said it is currently looking at what it describes as a pipeline of new ventures, while it confirmed it has completed the sale of its Romanian subsidiary.

 

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