Work on the oil site at Wressle, near Scunthorpe, is now underway, the operator, Egdon Resources, said this morning.
In a statement to investors, the company said:
“The site civils contractor has mobilised and the works to reconfigure the Wressle production site have commenced.”
Egdon was granted planning permission in January 2020 for long-term oil production at Wressle. The company estimates that the site will increase its oil production by 150 barrels of oil per day.
Today’s statement said the first phase of site work comprised the installation of a:
- New high density polyethelene impermeable membrane
- French drain system
- Surface water interceptor
- Purpose-built bund area for storage tanks
- Tanker loading plinth
- Internal roadway
The statement said Egdon remained on track to produce the first oil from Wressle during the second half of 2020.
The company’s managing director, Mark Abbott, said:
“We continue to make good progress with the Wressle development, in line with the expected timeline, despite the challenges of the current operating environment.
“The commencement of the site reconfiguration works represents an important step in the progress to first oil which will increase Egdon’s production by 150 barrels of oil per day. Wressle is economically robust with an estimated project break-even oil price of $17.62 per barrel.”
The statement said key planning conditions had been discharged and tendering, procurement and health and safety procedures were progressing.
A company spokesperson told DrillOrDrop:
“I can confirm that all of the pre-start conditions (4, 16 and 17) related to the site reconfiguration works have been discharged and agreed by the council.”
A further condition, which requires Egdon to give details of the drilling rig specifications (condition 5), is still outstanding.
Last week, North Lincolnshire Council told DrillOrDrop that it had discharged one pre-work planning condition. It was also considering details that had been submitted for three other conditions on noise, load bearing testing and quality assurance.
Four groundwater monitoring boreholes have been installed and two rounds of sampling have been undertaken, Egdon said.
Union Jack Oil plc confirmed today that the Oil & Gas Authority had approved its increased stake in the Wressle project.
The deal makes Union Jack the biggest individual player in the Wressle licences, PEDL180 and 182.
DrillOrDrop reported in June 2020 that Union Jack had paid £500,000 to buy out Humber Oil & Gas, taking its stake from 27.5% to 40%.