Extended Well Test on Wressle Discovery Kicks Off

Europa Oil & Gas (Holdings) plc, confirmed the commencement of an Extended Well Test at the Wressle-1 oil and gas well (‘Wressle’) in East Lincolnshire (‘PEDL 180’).  This follows the successful testing earlier this year of four intervals at Wressle, which recovered a total of 710 barrels of oil equivalent per day from all four payzones.

The start of testing operations marks a significant milestone for AIM firms Europa has a 33.3% working interest in PEDL180, alongside Egdon (operator, 25%), Celtique Energie Petroleum Ltd (33.3%), Union Jack Oil (8.3%). 
 
During initial testing, the Wressle-1 well produced oil and gas from three discrete reservoir intervals, the Ashover Grit, the Wingfield Flags, and two zones within the Penistone Flags.

 * Following these test operations, a completion was installed in the well to accommodate a pumped EWT over the oil productive zones in the Ashover Grit and the Penistone Flags
 * Surface facilities and other equipment required for the EWT including a beam pump, down-hole pump, and pump rods have now been installed
  * The EWT will initially focus on the Ashover Grit interval, which will be tested for up to 28 days to determine production rates that can be achieved under pumped conditions

      # The Ashover Grit flowed 80 barrels of oil per day (‘bopd’) and 47 thousand cubic feet of gas per day during a 16 hour main flow period in February 2015
      # The oil is of good quality with a gravity of 39-40° API
 * The Ashover Grit will then be isolated and the oil leg in the Penistone Flags will undergo an EWT for up to 28 days to determine production rates under pumped conditions
      # Zone 3a of the Penistone Flags flowed 77 bopd, swabbed in March 2015

 * Further updates will be provided at key points during the EWT, with the first anticipated to be the results of the pumped testing of the Ashover Grit
 * Data gathered from EWT operations will be used to evaluate the Wressle discovery and allow an updated resource assessment to be included in a Competent Person’s Report covering Europa’s portfolio of onshore UK licences
 
Europa’s CEO, Hugh Mackay said, “This discovery has the potential to significantly increase our existing UK reserves, production and revenues. With a 33.34% interest in the PEDL 180 and PEDL 182 licences, Europa has material equity exposure to oil production from Wressle, both from future long term field production and from the EWT itself.  Any oil produced during the EWT test will be sold and therefore have an immediate positive impact on our cash flow.
 
“Europa operates the Crosby Warren field which is 5 km from and on structural trend with Wressle.  Crosby Warren has been producing oil since 1986 and from a similar stratigraphic level to the Ashover Grit at Wressle.  The EWT is a key first step towards commercialisation and monetisation and will inform the field development plan.  We have relevant reservoir engineering experience and look forward to the EWT results.”