TIDMEDR
RNS Number : 6338I
Egdon Resources PLC
27 March 2015
EGDON RESOURCES PLC 27 March 2015
("Egdon" or "the Company")
Update on Wressle-1 Well Testing - Results of Second Penistone
Flags Flow Test and Forward Programme
Egdon Resources plc (AIM:EDR) is pleased to announce the results
of the second Penistone Flags flow test at the Wressle-1 oil and
gas discovery in licence PEDL180 located to the East of Scunthorpe,
where Egdon operates with a 25% interest.
Zone 3a in the Penistone Flags was perforated over a 7.5 metre
interval and has produced good quality oil with a gravity of 33(o)
API. A total of 98.5 barrels of oil were recovered during the test
(of which flow induced by swabbing operations produced 34.3 barrels
of oil). This equates to approximately 77 barrels of oil per day
(bopd).
To date, the Wressle-1 well has flowed oil and gas from three
separate reservoirs, the Ashover Grit, the Wingfield Flags and the
Penistone Flags. The flow test result from Zone 3a has confirmed
the presence of an oil column below the gas leg in Zone 3 of the
Penistone Flags.
The downhole pressure and oil sample data from all tests will
now be interpreted and integrated into an updated field model to
inform future development planning. The next steps in evaluating
the discovery will be to undertake a pumped extended well test
(EWT) of the Ashover Grit and Penistone Flags oil intervals to
quantify the production levels that could be attained during
production.
Commenting on the test results and the planned forward programme
at Wressle, Mark Abbott Managing Director of Egdon Resources
said;
"The results from Wressle continue to be very positive. The
latest test has confirmed the presence of an oil column below the
gas zone in the Penistone Flags, albeit in tighter sandstones. To
date the well has successfully flowed hydrocarbons from four
discrete intervals, with the Penistone Flags delivering a
facilities restricted gas flowrate of 1.7 mmcfd, plus an aggregate
89 bopd; free-flowing rates of up to 182 bopd and 0.46 mmcfd from
the Wingfield Flags and 80 bopd from the Ashover Grit. This totals
710 barrels of oil equivalent per day from all zones.
We are now planning a pumped EWT to validate the optimised
production potential that could be obtained from the Wressle
discovery. We will now focus on integration and interpretation of
the engineering and geotechnical data that will provide the
information needed to quantify the resource volumes and optimise
the field development and monetisation options. The EWT is planned
to commence in mid May with operations expected to continue for up
to two months."
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)
On 9 February we updated shareholders on the successful Ashover
Grit Flow Test which recorded 80 barrels of oil per day 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.
On 19 February we updated shareholders on the successful
Wingfield Flags Flow Test which recorded up to 182 barrels of oil
per day of good quality 39-40 API oil were achieved on free flow,
along with up to 456 thousand cubic feet of gas per day.
On 27 February we updated shareholders the initial successful
Penistone test which produced gas at restricted flowrates of up to
1.7 million cubic feet of gas per day with associated oil of up to
12 barrels of oil per day and no free water.
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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