9th Oct 2014 07:42
LONDON (Alliance News) - Enegi Oil PLC Thursday said its license partner, Azinor Petroleum Ltd, has isolated oil bearing sands at its Phoenix Discovery project in the UK central North Sea, increasing the potential resource at the site.
Enegi shares were up 9.5% to 2.60 pence per share Thursday morning.
The volume of oil in the reservoir, prior to production, for Phoenix is likely to be in excess of 16 million barrels of oil following the information from Azinor, it said. The company said that the Phoenix project is now ready to move ahead to the next stage, and that there is limited necessity for further appraisal activity.
Previous Enegi estimates showed around 15 million barrels of oil in place at Phoenix.
The company "continues in determining the most appropriate development solution for Phoenix...Initial solution screening and economic studies suggest that Phoenix could be developed feasibly with a single horizontal producer," it said in a statement.
"The work to date indicates that Phoenix is a suitable development project...to fit neatly within our existing portfolio. We look forward to providing further updates as we progress Phoenix and add further projects to the portfolio," said Chief Executive Alan Minty.
By Joshua Warner; [email protected]; @JoshAlliance
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