Union Jack Oil PLC’s (LON:UJO) 40%-owned Wressle oil field development project has been given the greenlight for a ‘proppant squeeze’ operation, which is expected to yield higher production volumes.
The company, in a statement, said that the squeeze is intended to optimise production from the Ashover Grit reservoir up to a constrained rate of 500 barrels of gross oil production per day, which would equate to 200 bopd net to Union Jack Oil.
It is expected that the programme will take place in June, and the improved rate is anticipated straight away.
Ashover Grit is one of three producing reservoirs in the Wressle-1 well which has been on production test since January, and, subsequently the well was reperforated in the reservoir to improve ‘communication with the formation’.
"The proppant squeeze operation is the final phase of achieving our targeted oil production level and generating optimum cash-flows from the Ashover Grit reservoir,” said David Bramhill, Union Jack executive chairman.
"Revenues, post-proppant squeeze, especially in this now strong oil price environment will have a dramatic effect on the cash-generating capabilities of Union Jack going forward."