North Lincolnshire Council has granted approval for further development at the Wressle oil and gas exploration site in the UK. The project, situated in the northern region of the country, will see an expansion of the current site, allowing for the drilling of two additional wells. This announcement came through an official statement from the company on Monday.
The development also involves the installation of gas processing facilities and an underground gas pipeline that will connect Wressle to the local gas distribution network. The Wressle field, discovered in 2014, is located in onshore licences PEDL180 and PEDL182, positioned on the western edge of the Humber Basin in North Lincolnshire. The ownership of the field is divided among Europa Oil and Gas and Egdon Resources, each holding a 30% share, while Union Jack Oil owns 40%.
Europa Oil and Gas’s financial report for the first half of 2024 revealed a 57% decline in Wressle’s net production, dropping to 88 barrels of oil per day (bopd) from 207 bopd in the first half of 2023. The reduction was attributed to a three-month shutdown, necessary to install a jet pump for an artificial lift on the Wressle-1 well.
Despite these challenges, Wressle is projected to reach a production rate of 950 barrels per day, contributing to a slight reduction in the UK’s dependency on oil and gas imports. The field has already recovered over half of its total reserves, with peak production recorded in 2023 and an economic forecast extending until 2029.
The leaders of the companies involved, including Will Holland, CEO of Europa, and David Bramhill, executive chairman of Union Jack Oil, expressed optimism about the future of the field. They highlighted that the ongoing development will enhance oil production and monetise the associated gas, resulting in zero routine flaring at the site.
This progress has come amidst a backdrop of the Labour Government’s stricter regulations on the oil and gas industry, including a windfall tax and reductions in investment allowances. In response, Holland emphasised the importance of domestic production as the UK works towards achieving its net-zero emissions target by 2050.
On a related note, Europa announced on 10 September its intention to submit a planning application for a gas drilling rig at Burniston Mill in Scarborough before the end of November. This project has faced local opposition, but the company is committed to designing the site in a way that addresses concerns and mitigates any potential impacts during the construction and drilling phases.
Any activities at Burniston will still require planning permission from the North Yorkshire Council’s mineral planning authority before proceeding.
Union Jack Oil plc (LON:UJO) is an oil and gas company with a focus on onshore production, development, exploration and investment opportunities within the United Kingdom and the United States of America hydrocarbon sector.
