Tests at the Wressle oil site in North Lincolnshire have exceeded flow rates of 500 barrels of oil per day, the operator, Egdon Resources said this morning.
The result matched the company’s forecast following the proppant squeeze, a small-scale fracking operation, carried out last month.
The flow from the Ashover Grit formation had “not yet reached its full potential”, the company added.
Egdon’s managing director, Mark Abbott, said in a statement:
“I am delighted to advise that the proppant squeeze operation has been successful in enabling the Wressle well to deliver the target production rate of 500 barrels of oil per day. Oil production will be optimised whilst the Ashover Grit reservoir continues to clean-up.”
Egdon has a 30% interested in the Wressle licence. The other major shareholder is Union Jack Oil with 40%.
Union Jack’s executive chairman, David Bramhill, said:
“I am, of course, delighted with the outcome of the proppant squeeze operation which has enabled the Wressle-1 discovery to deliver the expected production rate of 500 barrels of oil per day from the Ashover Grit reservoir, the lowest reservoir interval in the original discovery well.”
Both companies said a full production rate of 500 barrels of oil per day, at current prices, would transform their business.
They also said there remained potential in other Wressle oil reservoirs in the Wingfield Flags and Penistone Flags, that were not part of the recent test programme.
At the time of writing, Egdon Resources shares were up 5.6% at 1.4p. Union Jack was up 1.47% at 34.50p.
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