Shares in Egdon and Europa pop as Lincolnshire field produces first oil
Shares in UK onshore oil firms Egdon and Europa jumped today as the companies announced the first production from their Wressle site in Lincolnshire.
The site, which was meant to produce its first oil last year, is one of few onshore oil developments in the UK.
AIM-listed Europa saw its stock soar 15 per cent on the back of the announcement, settling at 1.84p.
Egdon, better known for its involvement in fracking, also saw shares jump 5.7 per cent to 2.20p.
Both firms own 30 per cent of the project. Senior partner Union Jack Oil, which owns 40 per cent, saw its stock slip 3.5 per cent.
Europa chief executive Simon Oddie said: “The successful and safe completion of operations to recomplete and reperforate the Wressle-1 well on schedule, in spite of the ongoing pandemic and associated lockdown, is testament to the professionalism and expertise of the team on the ground.
“With Wressle-1 currently on continuous 24-hour test production, I look forward to providing further updates once it has cleaned up and flow rates have stabilised.”
On the back of the start of production, broker FinnCap have given Europa a 6.3p target price and said “This will be a highly profitable, cash generative project, more than doubling production and providing a platform to allow Europa to keep maturing its major offshore exploration opportunities in Ireland and Morocco.”
Union Jack said in a brief statement: “Wressle oilfield plays a key role in meeting the UK’s energy needs as locally sourced and produced oil can significantly reduce the industry’s carbon emissions by cutting transport and decreasing the need for imported energy sources.”
Today’s news is the latest in a number of recent UK onshore oil developments.
Back in December Reabold Resources announced that it had found the largest onshore oil field discovered in the UK since 1973, sending its shares soaring.