The operator of the Wressle oil field in North Lincolnshire reported a 500% increase in oil and gas revenues in its latest interim accounts today.
Egdon Resources said increased production and higher prices resulted in a £1.222m profit for the six months to the end of January 2022, compared with a similar loss for the same period a year before.
Production rose by 116% to 200 barrels of oil equivalent (boe) per day, up from 92 boepd in the same period a year before, the company said. See update note at the end of this article
The Wressle site, still in a test phase, has reached instantaneous flow rates of 1,000 bopd following upgrades to production facilities, Egdon said. This “significantly exceeded” the original estimates of 500 bopd.
Production at Wressle is currently restricted to 760-800bopd by a limit on gas flaring of 10 tonnes a day in the environmental permit. The company said it expected to increase oil production by piping gas into the local grid, rather than burning it. This would need both planning and permit permissions.
Cumulative production at Wressle had exceeded 150,000 barrels of oil since January 2021, with no formation water, the company added.
A revised field development plan was submitted to the regulator, the North Sea Transition Authority, during April 2022.
Egdon’s chairman, Philip Stephens said:
“The period has been an exceptional one for the Company. Revenues have increased fivefold and this has resulted in a return to profit after the challenges of recent years. Significantly increased commodity prices and increased production have made this possible. The Wressle field continues to exceed our expectations.”
Other onshore fields
Egdon said there were prospects for increased oil production at Keddington, Keddington South and Louth, all in Lincolnshire.
Avington, Hampshire: Refusal of permission for reinstated production overturned on appeal. Plans underway for one or more wells.
Dukes Wood: Plans to convert Dukes Wood-1 oil well to geothermal production.
Fiskerton Airfield, Lincolnshire: Production continued but Egdon said the site could be used for disposal of produced water and to generate geothermal water.
Kirkleatham Cleveland: Currently shut in but discussions for a farm-out and sidetrack well to access gas.
Waddock Cross, Dorset: Currently shut in but Egdon said applications were expected by the end of 2022 for permission to drill for oil in 2023.
Egdon also reported it had taken over operation of PEDL343 in North Yorkshire, from Third Energy, and increased its stake to 40%. It has agreed an extension to the exploration phase of the licence to March 2024.
Egdon also said it was increasing its interest in PEDL209 in North Lincolnshire to 100% following the withdrawal of Blackland Park and Stelinmatvic Industries.
It has relinquished its interest in PEDLs 202, 258, 259 and 339.
Oil and gas revenue: £2.551m (H1 2021: £0.424m)
Total cost of sales: £0.785m (H1 2021: £0.998m)
Profit before impairments and write backs: £0.715m (H1 2021: loss of £0.763m)
Overall profit: £1.222m (H1 2021: loss of £1.039m)
Admin expenses: £0.477m (H1 2021: £0.469m)
Cash and cash equivalents: £2.084m (H1 2021: £2.422m)
Net current assets at 31 January 2022: £1.165m (31 January 2021: net current liability of £0.126m)
Total current liabilities: £2.307m (H1 2021: £3.267m)
Updated 27/4/22: Egdon corrected the increase in production from 156% to 116% after initially including February 2022 figures in its interim results to January 2022.