TIDMEDR
RNS Number : 3408E
Egdon Resources PLC
09 February 2015
9 February 2014
EGDON RESOURCES PLC
("Egdon" or "the Company")
Update on Wressle-1 Well Testing - Results of Ashover Grit Flow
Test
Egdon Resources plc (AIM:EDR) is pleased to provide an update on
the ongoing well test operations at the Wressle-1 oil discovery in
licence PEDL180 located to the East of Scunthorpe, where Egdon
operates with a 25% interest.
Test operations have now been completed on the Ashover Grit
reservoir, the first of three potentially hydrocarbon bearing zones
identified in the well. An interval of 9.5 metres was perforated
(2006.1 to 2015.6 metres measured depth) and following an initial
"clean-up" flow, free flowing oil production rates equivalent to 80
barrels of oil per day ("bopd") were achieved during a 16 hour main
flow period along with 47 thousand cubic feet of gas per day. No
appreciable volumes of water were observed. The oil is of good
quality with a gravity of 39-40(o) API.
Down-hole pressure data, recorded during the main flow and
subsequent shut-in build-up period, will now be analysed to
evaluate the nature of the reservoir permeability to determine the
increased production rates that could be achieved during pumped
production.
The Ashover Grit interval will now be isolated with a
bridge-plug and test operations will continue on two further
discrete zones, the Wingfield Flags and Penistone Flags, where
hydrocarbons are indicated from log data and gas chromatograph
analysis. We will provide further updates as and when results are
known from these intervals.
Given the encouraging free-flow test results from the Ashover
Grit it is intended to undertake a longer term pumped production
test subsequent to the current test programme being completed.
Commenting on the Ashover Grit flow test results, Mark Abbott
Managing Director of Egdon Resources said;
"These are very encouraging results, with free-flowing rates of
80 bopd of good quality oil from the first zone tested. We now look
forward to the results from two further intervals which could add
further substantial production potential to that demonstrated from
the Ashover Grit.
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 and we look forward
to progressing plans for a longer term pumped production test on
the Ashover Grit and any of the other zones which show
potential."
For further information please contact:
Egdon Resources plc
Mark Abbott, Jerry Field 01256 702 292
Buchanan
Richard Darby, Anna Michniewicz 020 7466 5000
Nominated Adviser and Broker - Cantor Fitzgerald Europe
David Porter, Sarah Wharry (Corporate Finance) 020 7894 7000
Richard Redmayne (Corporate Broking)
Joint Broker - VSA Capital Limited
Andrew Monk (Corporate Broking) 020 3005 5000
Andrew Raca (Corporate Finance)
Notes to Editors:
The Wressle Oil Discovery
The Wressle Prospect was defined on proprietary 3D seismic data,
which was acquired by Egdon in February 2012. The structure is
located on trend with the producing Crosby Warren oil field and the
Broughton-B1 oil discovery, both to the immediate northwest, and
the Brigg-1 oil discovery to the immediate southeast. All contain
oil in various different sandstone reservoirs within the Upper
Carboniferous succession. The pre-drill gross mean Prospective
Resources at Wressle, as calculated by Egdon, were estimated to be
2.1 million barrels of oil. This will be updated following the
results of the current test operations.
The Wressle-1 well reached a total depth (TD) of 2240 metres
measured depth (MD) (1814 metres true vertical depth below OS datum
(TVDSS)) on 23 August 2014. Elevated mud gas readings were observed
over large parts of the interval from the top of the Penistone
Flags reservoir target (1831.5 metres MD) to TD.
The well was logged using measurement whilst drilling (MWD)
logging tools run on the drill string. Petrophysical evaluation of
the log data has indicated the presence of potential hydrocarbon
pay in three main intervals;
-- Penistone Flags - up to 19.8 metres measured thickness (15.9 metres vertical thickness)
-- Wingfield Flags - up to 5.64 metres measured thickness (5.1 metres vertical thickness)
-- Ashover Grit - up to 6.1 metres measured thickness (5.8 metres vertical thickness)
The interests in the Wressle-1 well are:
Egdon Resources U.K. Limited 25.00% (Operator)
Celtique Energie Petroleum Limited 33.33%
Europa Oil & Gas Limited 33.34%
Union Jack Oil plc 8.33%
Operations at this site will not involve the process of
hydraulic 'fracking' for shale gas.
Egdon Resources plc
Egdon Resources plc (LSE: EDR) is an established UK-based
exploration and production company primarily focused on onshore
exploration and production in the hydrocarbon-producing basins of
the UK and France.
Egdon currently holds interests in thirty four licences in the
UK and France and has an active programme of exploration, appraisal
and development within its balanced portfolio of oil and gas
assets. Egdon is an approved operator in both the UK and
France.
Egdon was formed in 1997 and listed on AIM in December 2004.
In accordance with the AIM Rules - Note for Mining and Oil and
Gas Companies, the information contained in this announcement has
been reviewed and signed off by the Managing Director of Egdon
Resources plc Mark Abbott, a Geoscientist with over 26 years'
experience.
Evaluation of potential recoverable hydrocarbons has been
assessed in accordance with 2007 Petroleum Resources Management
System prepared by the Oil and Gas Reserves Committee of the
Society of Petroleum Engineers (SPE) and reviewed and jointly
sponsored by the World Petroleum Council (WPC), the American
Association of Petroleum Geologists (AAPG) and the Society of
Petroleum Evaluation Engineers (SPEE).
This information is provided by RNS
The company news service from the London Stock Exchange
END
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