21st Jul 2015 07:07
LONDON (Alliance News) - Egdon Resources PLC on Tuesday said it has received encouraging results from the pumped test carried out at the Penistone Flags Zone 3A as part of the Wressle-1 oil and gas discovery located east of Scunthorpe.
The Penistone Flags interval was pumped for a period of time and achieved average rates over a three day period of 131 barrels of oil per day and 222,000 cubic feet of gas per day, together totalling 168 barrels of oil equivalent per day with an average producing gas oil ratio of approximately 1,700 cubic feet of gas per barrel of oil, Egdon said.
The gas production rate has increased to the point where it is approaching the limits allowed under the environmental permit and as such production from the interval has now been halted, Egdon added. The well is now being killed ready for the next operation to be conducted, an injection test over the Penistone Flags zone 3A interval, which will provide further reservoir data.
"I am pleased to report the continuing encouraging results from the Wressle-1 test programme. The hydrocarbon production rate of over 180 barrels of oil equivalent per day attained from the Penistone Flags oil zone has exceeded pre-test expectations. The production performance together with the planned injection test will provide valuable reservoir engineering data that will be used to plan for a commercial development of the Penistone Flags," said Egdon Managing Director Mark Abbott.
Egdon shares were up 5.8% to 13.75 pence on the news.
Egdon is the operator of the licence, with a 25% interest. Fellow UK-listed oil and gas companies Europa Oil & Gas (Holdings) PLC and Union Jack Oil PLC also hold interests in the licence, with Europa holding a 33.3% working interest and Union Jack holding an 8.3% stake.
Europa shares were up 5.8% on the news in early trade, up to 6.35 pence, while Union Jack shares were down 3.7% to 0.207 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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