SHARES in oil firm Egdon Resources went up by 1.43 per cent yesterday after it revealed it had measured free flowing oil production rates equivalent to 80 barrels of oil per day during tests on the Ashover Grit reservoir at its Wressle-1 operation.
Egdon, which has a 25 per cent interest in the Lincolnshire site, said that given the encouraging free-flow test results, it now intends to perform a longer term pumped production test.
Mark Abbott, Egdon’s managing director, commented on the test results: “During this period of reduced oil prices, the low development and operating costs of onshore UK production means that discoveries such as Wressle remain commercially attractive.”
Abbott added that the firm is looking forward to progressing plans for a longer term pumped production test on the Ashover Grit site and “any of the other zones which show potential”.
Meanwhile, Europa Oil & Gas, which has a 33.3 per cent interest in the Wressle-1 discovery, saw shares go up by 2.27 per cent on the news yesterday, closing at 5.62p in London.