Lincolnshire oil field snapped up in £590k deal

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Lincolnshire’s Fiskerton Airfield oil field is being acquired by a Hampshire oil and gas exploration and production business.

Egdon Resources will acquire a 100% interest in – and operatorship – of the oil field from Cirque Energy for £590,000 million. The effective date of the acquisition will be 1st January 2017.

The Fiskerton Airfield oil field is located approximately 7 kilometres to the East of Lincoln. The field was discovered in 1997 and cumulative production has totalled around 440,000 barrels of oil from the most likely mapped Oil in Place estimated at 2.2 million barrels.

The oil is of good quality (35.2°API) and is exported by road tanker to Immingham, North East Lincolnshire.

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

The field is currently producing circa 19 barrels of oil per day from one of two production wells. The second producing well is currently shut-in awaiting a workover.

The field has suffered from a lack of investment in recent years.  Egdon plans 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 is 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.