TIDMEDR
RNS Number : 2745F
Egdon Resources PLC
19 February 2015
19 February 2015
EGDON RESOURCES PLC
("Egdon" or "the Company")
Update on Wressle-1 Well Testing - Results of Wingfield Flags
Flow Test
Egdon Resources plc (AIM:EDR) is pleased to provide a further
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 Wingfield Flags
reservoir, the second of three potentially hydrocarbon bearing
zones identified in the well. Oil production rates equivalent of up
to 182 barrels of oil per day ("bopd") of good quality 39-40 API
oil were achieved on free flow, along with up to 456 thousand cubic
feet of gas per day.
The final zone will now be tested, but it is already intended to
undertake a longer term pumped production test to determine how
best the field can be developed.
Details of the Testing
Test operations have now been completed on the Wingfield Flags
reservoir, the second of three potentially hydrocarbon bearing
zones identified in the well. An interval of three metres was
perforated (1,937 to 1,940 metres measured depth) and following an
initial "clean-up" oil and gas flow, two flow tests were carried
out using different choke sizes to attempt to optimise oil
flowrates - from what proved to be a high Gas Oil Ratio (GOR) oil
during the clean-up period:
-- During the initial free flowing test using a 16/64" choke,
oil production rates equivalent to 116 barrels of oil per day
("bopd") were achieved during a four hour main flow period along
with 341 thousand cubic feet of gas per day. No appreciable volumes
of water were observed.
-- During the second free flowing test using a wider 32/64"
choke, oil production rates equivalent to 182 barrels of oil per
day ("bopd") were achieved during a five hour main flow period
along with 456 thousand cubic feet of gas per day. Again 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 Wingfield Flags interval will now be isolated with a
bridge-plug and test operations will continue on the final zone,
the 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 this interval.
Given the encouraging free-flow test results from the Ashover
Grit and Wingfield Flags it is intended to undertake a longer term
pumped production test subsequent to the completion of current test
programme.
Commenting on the Wingfield Flags flow test results, Mark Abbott
Managing Director of Egdon Resources said;
"These are very encouraging results, with free-flowing rates of
up to 182 bopd from the Wingfield Flags and 80 bopd from the
Ashover Grit zone tested last week. We now look forward to flow
testing the final interval the Penistone Flags which could add
further substantial production potential to that achieved from the
Wingfield Flags and the Ashover Grit.
We are progressing with plans for an extended well test to
provide an assessment of longer term production performance under
pumped conditions, to confirm commerciality and provide the data
required in planning for the development of the Wressle oil and gas
discovery. As previously stated the low capital and operating cost
of UK onshore developments make developments such as Wressle
commercially attractive even in today's lower oil price
environment. We look forward to updating shareholders further
following the Penistone Flags test."
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)
-- Wingfield Flags - up to 6.1 metres measured thickness (5.8 metres vertical thickness)
On 9 February we updated shareholders on the initial successful
Ashover Grit Flow Test which recorded 80 barrels of oil per day
("bopd") and 47 thousand cubic feet of gas per day during a 16 hour
main flow period. No appreciable volumes of water were observed.
The oil is of good quality with a gravity of 39-40deg API.
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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