Proactive Investors - Europa Oil & Gas Holdings (LON:EOG) expects to progress field development and realise value at Wressle as a new report upgrades resources estimates at the field in Lincolnshire.
A new competent person's report (CPR) for the Wressle project has upgraded the field’s estimated reserves by some 263% - with around 1.8 million barrels added to its inventory which now stands at 2.3 million barrels proved and probable.
Plus ‘ultimate recoverable reserves’ rose by 59% thanks to improved estimates of the Ashover Grit and Wingfield Flags reservoirs at Wressle.
Meanwhile, the review of resources for the Broughton North (an exploration prospect) saw prospective resource estimates boosted by some 23% to 608,000 barrels oil equivalent in the ‘best estimate’.
"I'm very pleased to announce the material 263% upgrade in 2P reserves at Wressle, which marks the completion of an extensive and detailed independent technical evaluation of Wressle and the surrounding prospectivity," chief executive Will Holland said in a statement.
“The ERCE evaluation included the reprocessed 3D seismic and the historical production performance at Wressle, which has refined the original 2016 CPR and has led to the significant upgrades in the recoverable reserves of the Ashover Grit, Wingfield Flags and Penistone Flags, and the increase in Broughton North's Prospective Resources.”
The report was produced by ERC Equipoise Limited (ERCE), commissioned by operator Egdon Resources, and it included the adoption of the 2018 ‘standard’ Petroleum Resources Management System for the classification and reporting of reserves and resources. It included the reclassification of inventory in the Penistone Flags reservoir into Proved and Probable (2P) reserves.
Estimates of recovery factors were prepared, based on consideration of the results of production performance analysis, reservoir simulation models, classical reservoir engineering calculations and the performances of analogue fields, the statement noted.
Production profiles were generated by ERCE for both reserves and contingent resources. Forecasts generated for reserves were used as input to an economic model to undertake an economic limit test and assess commerciality.
“I look forward to updating the market during 2024 as we seek to progress the field development and continue to realise the value of the field," Holland added.
Europa has a 30% interest in Wressle alongside partners Egdon and Union Jack which have 30% and 40% respectively.