Wressle oil project ‘economically robust’ against low oil prices

Europa Oil & Gas Holdings (EOG), Union Jack Oil (UJO) and other partners have described the Wressle oil field development project in the UK as `economically robust` in the current low oil price environment.

The Wressle oil field development project lies onshore UK in North Lincolnshire Licences PEDL180 and PEDL182. It was discovered by the Wressle-1 well on the PEDL180 licence in Lincolnshire in 2014.

Europa holds a 30% working interest in the licences. Other partners include Egdon (30%), Union Jack Oil (27.5%) and Humber Oil & Gas (12.5%), with Egdon serving as the operator of the project.

The partners cited the findings of Egdon Resources’ updated model, which estimated a $17.62 a barrel break-even oil price for the project.

According to the companies, the forward plan for the Wressle development includes finalising detailed designs, tendering and procurement of materials.

Site reconfiguration, installation and commissioning of surface facilities, installation of the groundwater monitoring boreholes and establishment of baseline conditions through monitoring, and other sub-surface operations are part of further plans for the project.

The companies have targeted first oil for the second half (H2) of this year.

EOG chairman Simon Oddie said: “The results of the updated economic model for Wressle confirm what we have long believed, that the project represents a low-cost opportunity to more than double Europa’s production to over 200 barrels of oil per day (bopd).

“With first oil targeted for H2 2020, I look forward to providing further updates on progress made towards bringing this UK onshore field into production.”

In June 2016, the Oil & Gas Authority granted a two-year extension to Europa Oil & Gas for the PEDL 143 licence in the UK’s onshore Weald basin, Surrey.