LONDON--3Legs Resources PLC (3LEG.LN) an oil and gas company,
said it concluded talks with ConocoPhillips (COP) over the
company's 2014 exploration program, with the two parties committing
to a new $63 million work program for 2013 to 2014.
MAIN FACTS:
- Data gathered from vertical wells to date enabled a detailed
understanding of well stimulation effectiveness and of reservoir
properties in target shale horizons
-Parties agreed that the best way to assess flow-rate potential
will be to drill, stimulate and test a long lateral well in the
Sasino shale horizon
-3-well 2013-14 program to achieve this will start in 4Q2013
with 2 vertical pilot wells to be drilled in 3Legs' high-graded
area
-Program will culminate in a long lateral well probably in the
Sasino formation by way of side-track from one of the two planned
vertical wells, completed with a multi-stage stimulation and tested
from 2Q-3Q 2014
-Cost of the committed work program is estimated at $63 million
gross ($19 million net to 3Legs)
-3Legs forecasts a cash position of GBP17 million at end of the
third quarter of 2014
-3Legs shares at 0907 GMT down 1 pence or 2.6% at 23 pence
valuing the company at GBP20 million.
-Write to Ed Ballard at ed.ballard@wsj.com
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