20th Oct 2014 08:10
LONDON (Alliance News) - The companies involved in the PEDL 180 license in east Lincolnshire Monday said they have confirmed the presence of hydrocarbon bearing zones in three separate resevoirs at the Wressle-1 well, and plan to begin production testing.
Egdon Resources PLC is the operator of the well with a 25% interest, while Europa Oil and Gas PLC and Celtique Energie Petroleum Ltd have a 33.3% interest each, and Union Jack Oil has a 8.3% stake.
Egdon shares were up 7.6% to 14.26 pence per share Monday morning whilst Europa shares jumped 8.9% to 7.35 pence per share. Union Jack shares were untraded Monday morning, closing at 0.320 pence per share on Friday.
On September 2, Egdon released a statement stating that hydrocarbons had been found at the Wressle-1 well, and today said additional detailed work has confirmed the discovery. The company is currently finalising the design and logistics for a testing programme on the well.
Egdon originally planned to commence production testing during October, but now plans to begin testing in November using a work-over rig, it said in a statement.
Egdon, Europa and Union all released statements which also said that the Kiln Lane exploration well on the same license, operated by Europa, would be drilled by the end of the calendar year. The Kiln Lane prospect is targeting 2.9 million barrels of oil.
"Having identified over 30 metres of potential hydrocarbon pay in three main intervals we look forward to the commencement of testing operations on the Wressle 1 well in the next few weeks and to determine if we have made a commercial discovery. Testing Wressle will be closely followed by drilling the 2.9mmbo conventional Kiln Lane prospect. Combined Wressle and Kiln Lane have the potential to transform our existing UK onshore production profile," said Europa Chief Executive Hugh Mackay.
Egdon also said it has achieved an average daily production of 238 barrels of oil equivalent per day, higher than its target of 200 barrels of oil equivalent per day and 53 barrels of oil equivalent per day from liquid production ahead of its final results, which are due to be released on November 11.
By Joshua Warner; [email protected]; @JoshAlliance
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