Wressle 3rd Interval Test Results

Europa Oil & Gas (Holdings) plc, confirmed today from Egdon Resources that gas production rates of up to 1.7 million cubic feet per day (‘mmcfd’) and up to 12 barrels of oil per day (‘bopd’), following the completion of the first of two tests in the Penistone Flags reservoir at the Wressle-1 oil discovery (‘Wressle’) on Licence PEDL 180 in East Lincolnshire (‘PEDL 180’). 

The Penistone Flags is the third of three hydrocarbon bearing zones tested, the first of which, Ashover Grit, tested 80 bopd and 47mcf of gas per day, while the second, the Wingfield Flags tested up to 182 bopd.  Europa has a 33.3% working interest in PEDL 180, alongside Egdon (operator, 25%), Celtique Energie Petroleum Ltd (33.3%), Union Jack Oil (8.3%). 
 
•             First test of a 9 metre perforated interval in the upper part of the Penistone Flags reservoir has been completed, with free flowing gas production rates of up to 1.7 mmcfd and 12 bopd recorded
o             Gas flow rates were constrained by the equipment and flaring limits imposed by the environmental permit
•             No free water was encountered and the oil is of good quality with a gravity of 35o API
•             Down-hole pressure data, recorded during testing will be analysed to estimate the gas flow rates that could be achieved without flare and permit constraints
•             Second test to evaluate the gas-oil and oil-water contacts in the lower part of the Penistone Flags reservoir will commence shortly
•             Following completion of the second Penistone test the Wingfield Flags and Penistone Flags intervals will be isolated with a bridge-plug to enable a longer term pumped production test to determine potential pumped production rates from the Ashover Grit and to further ‘clean-up’ the formation
•             All data gathered from the test operations will be used to fully evaluate the Wressle discovery which will allow an updated resource assessment to be carried out and to inform field development options
 
Europa’s CEO, Hugh Mackay said, “We are delighted that all three payzones tested at Wressle have now produced hydrocarbons.  Operations are currently focused on identifying the expected oil leg of the Penistone Flags reservoir.  Once these have been completed and the Wressle model updated with all the data and results obtained, the Ashover Grit will be put on an Extended Well Test to determine what production rates can be achieved using a pump.  With drilling underway on the neighbouring licence targeting the conventional 2.9mmboe Kiln Lane prospect, this is an exciting period for Europa, one that will not be short of high impact news flow.  I look forward to providing further updates on our progress as we focus on monetising our asset base and in the process generating substantial value for our shareholders.”