IGas Energy Plc (LON:IGAS) told investors it is advancing an enhanced oil recovery venture to boost production from conventional reservoirs at the Welton project in the East Midlands.
The company, in a statement, said it would be following on from a previous success using waterflooding techniques at the Welton field it has identified an opportunity in the southern portion of the project.
It plans to use a suspended production well as a water injector in order to deliver an increase in ‘reservoir sweep’ and increase field production.
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IGas anticipates it can add 340mln barrels of contingent resources with the programme and that peak incremental production rates could measure up to 120 barrels of oil per day. It estimates ‘mid-case’ project economics that deliver IRR above 100% and value the project at around £7mln.
"We continue to mature projects across the portfolio as we seek to maximise returns on our existing operations and infrastructure, and in this case are pleased to be moving forward with another low-risk opportunity with an estimated mid-case IRR of over 100%,” said Stephen Bowler, IGas chief executive.
He added: “This is part of the wider Welton full field development and as well as increasing production, will aid in de-risking further injection projects into other areas of the field and provide critical infrastructure to assist with water disposal and support future rationalisation work across Welton sites."