28th Oct 2015 08:18
LONDON (Alliance News) - EnQuest PLC Wednesday said it has produced its first oil from the Alma/Galia development in the central UK North Sea.
The company's production is through the EnQuest Producer floating production, storage and offloading vessel, but the company, which operates the project, did not release how much oil is being produced or expected to be produced going forward.
At the start of 2015, EnQuest's 65% stake in the development project was estimated to amount to around 26.0 million barrels of oil equivalent in net 2P reserves.
"We are pleased to confirm first oil from Alma/Galia. A further summary will be provided in EnQuest's next operations update. We will continue to open up additional wells, with full production rates expected from early 2016," said Chief Executive Amjad Bseisu.
The Alma field was formerly known as the Argyll field and was the first oilfield in the UK Continental Shelf ever to be turned into a commercial operation. The field was last producing in the 1990s, but the company believes new technology can revitalise the field and extend its life.
The FPSO vessel being used at the project has a production capacity of 120,000 barrels of oil per day - suggesting the company is hoping for a substantial project once it is up and running.
EnQuest believes only 30% of the stock-tank-oil-in-place at the field has been recovered, roughly equating to 307.0 million barrels.
EnQuest shares were up 3.0% to 28.83 pence per share on Wednesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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