2nd Jan 2024 11:05
(Alliance News) - Union Jack Oil PLC and Europa Oil & Gas Holdings PLC on Tuesday said an independent assessment has increased the oil reserves of their licences at the Wressle field onshore in Lincolnshire, England.
Union Jack has a 40% economic interest in the two licence areas, PEDL 180 and PEDL 182, while Europa Oil has a 30% interest. The operator is Egdon Resources UK Ltd.
A competent person's report prepared by ERC Equipoise Ltd showed 1P reserves of 906,000 barrels of oil equivalent, up from 303,000 at the last CPR report in 2016 and despite production of 519,000 barrels in the interim. The estimate of 2P reserves multiplied to 2.4 million barrels from 655,000 barrels, and 3P reserves to 4.9 million barrels from 1.4 million.
1P reserves are proved reserves, 2P are proved and probable, and 3P are proved, probable and possible. The new report reclassified 1.9 million barrels of contingent resources in the Penistone Flags to 2P reserves.
"The increase in Wressle's Reserves vindicates the focus by the [joint venture] partners management of the field's production to maximise recoverable volumes. This provides further support to the development approach we have undertaken to date," said Union Jack Executive Chair David Bramhill.
"The installation of artificial lift on the Wressle-1 well marked the start of the next phase of Wressle's development, which will also focus on the export of gas production to the UK National Transmission System, recently approved by the JV."
Union Jack shares were up 2.8% to 20.30 pence early Tuesday in London. Europa shares were down 8.3% at 1.10p, but had climbed 17% to 1.40p earlier on Tuesday morning.
By Tom Waite, Alliance News editor
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