Egdon buys Fiskerton field for £0.6m

Egdon Resources announced the acquisition of the producing Fiskerton Airfield oil field in Lincolnshire licence EXL294 on Monday, confirming it would acquire a 100% interest in, and operatorship of the Fiskerton Airfield oil field from Cirque Energy for a cash consideration of $0.75m (£0.58m), payable from existing cash resources upon completion.

The AIM-traded firm said the effective date of the acquisition would be 1 January.

It said the Fiskerton Airfield oil field is located around seven kilometres to the east of the City of Lincoln.

The field was discovered in 1997, and cumulative production had totalled around 440,000 barrels of oil from the most likely mapped oil in place estimated at 2.2 million barrels.

It said the oil is of good quality - 35.2°API - and is exported by road tanker to Immingham, North East Lincolnshire.

Egdon estimated that in excess of 100,000 barrels of oil remained recoverable from the existing wells.

“The field is currently producing circa 19 barrels of oil per day from one of two production wells (FA-3),” the board explained.

“The second producing well (FA-1) is currently shut-in awaiting a workover.

“The field also has a dedicated water disposal well to reinject produced water into the reservoir for pressure support (FA-2).”

Egdon said the field suffered from a lack of investment in recent years, and it planned to “enhance” the cash flows and profitability of the operation by increasing production initially to between 30 and 40 bopd via low cost well interventions.

It was also planned to workover both the currently producing FA-3 and the shut-in FA-1 wells during 2017 by installing new tubing, pumps and isolating water producing zones.

“We are pleased to acquire the Fiskerton Airfield oil field for a modest cash outlay,” said Egdon managing director Mark Abbott.

“The field has suffered from a lack of investment over recent years and we plan to undertake simple low-cost workovers to enhance production and profitability in the short-term, adding valuable near-term cash-flow to Egdon's portfolio.

“In the longer term, we will investigate the potential to enhance productivity through in-fill drilling.”