The target of the Lidsey oil field in West Sussex is not where it was previously predicted, the operator said today.
In a statement to investors, Angus Energy said the oil-bearing structure had been thought to extend to the west.
But directors now believe the structure culminates near the wellsite and extends to the east and north-east.
It may also extend out of the Angus licence area, PL241, the statement said. Talks were underway about working with the holder of the surrounding licence, it added.
The new location follows what Angus described as the “most comprehensive review of the Lidsey structure”. This involved reprocessing historical seismic lines, reviewing a newly acquired east-west seismic line and using data from local wells, the statement said.
It said the review findings explain “issues which were experienced” with the Lidsey-X2 well, drilled in October 2017.
This sidetrack well had a westerly path, in line with what was thought at the time.
But data from the Oil & Gas Authority (OGA) shows that production peaked at just 24 barrels per day (bopd) and averaged 11.5bopd in the 29 months it was producing. It was suspended in March 2020.
The other Lidsey well, Lidsey-X1, produced an average of 19.4 barrels per day between 2008 and 2016, when it was shut in.
In 2016, the company had predicted gross oil production at Lidsey of 279 barrels per day.
In February 2021, Angus said it intended to use Lidsey-X2 for reservoir support, rather than production. In August 2021, the company predicted it could drill a sidetrack at the Lidsey wellsite in 2022.
Today, the company said it was exploring “low-cost options for remediation of the field’s productivity centre around the reuse, work-over or side-tracking of the existing wells and these will be considered with our partners in the next stage of the work”.
The Lidsey licence, PL241, is surrounded by PEDL326. This was issued to IGas in July 2016 and has an initial exploration term that runs until July 2024.
Shares in Angus Energy fell at midday to 0.71p but at the time of writing had risen to 0.83p.