Union Jack Oil plc an onshore oil and gas production and exploration company has highlighted to DirectorsTalk that Egdon Resources PLC has released a positive update in respect of the Wressle oil and gas discovery in licence PEDL180, located to the east of Scunthorpe.
Union Jack holds an 8.33% interest in PEDL180.
Highlights
· Plan to progress to an agreed Field Development Plan with a view for readiness to submit to the Oil and Gas Authority during Q1 2016;
· Focus on delivering the required consents to enable commercial production from the Ashover Grit in H2 2016; and
· Reservoir engineering analysis of the well test pressure and production data indicates that initial production rates from the Ashover Grit in excess of 500 barrels of oil per day could be anticipated by successfully countering skin effects.
Egdon’s RNS contained the following information:
As announced previously, it had been the PEDL180 joint venture (JV) partners’ intention to undertake further well test operations on both the Ashover Grit and Penistone Flags intervals. However, since completion of the Extended Well Test (“EWT”) operations in early September 2015, the group has completed a detailed review of the data gathered to date and are now sufficiently comfortable to continue working towards compiling a field development plan (“FDP”) without requiring further time-consuming and costly testing operations.
As previously reported, flow rates from the Ashover Grit measured in the initial testing phase (80 barrels of oil per day (“bopd”)) were affected by localised near well bore formation damage (high “Skin” factor) and so are not representative of the flow rates that could be attained from this interval. Reservoir engineering analyses of the well test pressure and production data indicates that initial production rates in excess of 500bopd could be anticipated if the effects of the “Skin” can be successfully countered. It is therefore the JV’s intention that plans for the development of Wressle will include a comprehensive suite of operations and procedures, designed to mitigate the impact of the “Skin” on production rates, which form part of the initial workover programme for the well to prepare it for long-term production.
Egdon and the PEDL180 partners now plan to progress to an agreed FDP for Wressle with a view to it being ready in Q1 2016 for submission to the Oil and Gas Authority (“OGA”) for approval. The FDP will be compiled using drilling and test data from the well together with reprocessed 3D seismic data to quantify the developable resource volumes attributable to Wressle. In addition, planning and permitting applications will also be required to be submitted to North Lincolnshire Council and the Environment Agency.
Production from Wressle is currently expected to be phased, with initial development focused on the Ashover Grit oil reservoir.
Commenting on the update, Mark Abbott, Managing Director of Egdon Resources said: “We are delighted that the petroleum engineering and geotechnical work conducted to date has given the PEDL180 joint venture sufficient confidence to move directly towards FDP preparation for Wressle, without further costly and time-consuming testing. We are now focussed on delivering the required consents to enable us to commence commercial oil production from the Ashover Grit in H2 2016.”
