Additional Field Work to Accelerate Gas Production

RNS Number : 5226L

Curzon Energy PLC

20 April 2018

 

20 April 2018

Curzon Energy Plc

("Curzon Energy" or the "Company")

Operational Update

Additional Field Work to Accelerate Gas Production

Curzon Energy Plc, the 100% owner of the 45,000 acre Coos Bay Coalbed Methane (CBM) Project, is pleased to provide the following operational update.

Highlights

·     Operations to remove bridge plugs are scheduled to commence in the coming week

·   Well work will include approximately 335 ft of new perforations and re-perforation of select existing completions in order to open all identified gas bearing coal seams

·     In addition, the Company will perforate approximately 310 ft of gas bearing conventional reservoir sands in order to assess the productivity of these sands

·    Gas rates and wellhead pressures are increasing in line with expectations given the extent of the wells open to productive zones

·   In line with typical CBM wells, at start-up, the wells were producing mostly water with traces of gas. Individual wells are now exceeding gas production of 10 Mscf/day and are on increasing trend as expected

·   Added perforations in both coal seams and conventional reservoir sands are expected to accelerate production rates

·    Gas currently being produced is sufficient to power wellhead pumping equipment with excess gas being flared

Additional Field Work to Accelerate Gas Production

As previously announced, the removal of the bridge plugs will provide the Company with access to deeper productive coal seams that were previously isolated due to the location of the bridge plugs.

The Company believes that this additional well work, which will allow access to more than twice as many "pay zones," will shorten the time-frame to commercial gas production, and increase overall gas production volumes.

In addition, the Company is excited to test the productivity of interbedded conventional gas bearing reservoirs. Contribution from conventional reservoir sands may also accelerate early gas production and also contribute to overall gas production per well.

In parallel with this work, the Company continues to advance the implementation of the permitted water disposal system, together with gas sales contract negotiations and a pipeline interconnection agreement for future gas sales.

Stephen Schoepfer, Managing Director of Curzon Energy, said:

"We are pleased to see Coos Bay deliver both increasing gas rates and wellhead pressure in line with our expectations and we are now producing sufficient gas to power wellhead pumping equipment, which is a very positive step forward. Our next step is to accelerate gas flow and production volumes from Coos Bay by increasing perforations along our gas bearing coal seam zones. In addition, the new perforations we will also perform on gas bearing conventional sand zones will help open up the potential for increased production, and will also help us gain further technical understanding which we can then apply to our phase two development programme."

For further information please contact:

Curzon Energy PLC	c/o Camarco
Stephen Schoepfer / Thomas Wagenhofer	[phone]
www.curzonenergy.com
SP Angel Corporate Finance LLP	[phone]
Richard Hail / Richard Redmayne
Camarco (Financial PR)	[phone]
Georgia Edmonds / Owen Roberts / Monique Perks

Notes to Editors:

Curzon Energy Plc, is the 100% owner of the 45,000 acre Coos Bay Coalbed Methane (CBM) Project, located in Oregon USA. Coos Bay has 2C contingent gas resources of 273.5 BCF. 

The Company is implementing a cost effective staged development plan, targeting first gas and cash generation from Phase I in Q2 2018. The Phase I work programme consists of the low-cost workover of five existing, and drilling of two new wells.

The Company is led by an experienced Board and senior management team who have extensive industry and financial experience. Curzon Energy is listed on the LSE Main Market under the ticker CZN.

About Coalbed Methane (CBM):

Coalbed methane gas (CBM) (or coal seam gas (CSG) or coal-mine methane (CMM)), is a form of natural gas extracted from coal seams or coal deposits. CBM is generated during the process of coalification which is the transformation of plant material into coal and is contained in the coal microstructure. Typical CBM recovery entails initially pumping water out of the coal to allow the natural gas to escape. Methane is the principal component of the natural gas from CBM production, which is typically made up of ~95 per cent methane and normally does not contain hydrogen sulphide or other sulphur compounds. Natural gas produced from CBM can normally be added to natural gas pipelines without any special treatment.

The United States has the longest history and greatest volumes of CBM production, however, other countries such as Canada, China and Australia have increased production over recent decades.

Competent Person's Statement

The information contained in this announcement has been reviewed and approved by Thomas Wagenhofer, Technical Director of Curzon, who is a petroleum engineer and oil and gas executive with over 20 years' international industry experience. Mr. Wagenhofer holds a MS degree in Petroleum Engineering from the University of Texas at Austin (1995) and a BS degree in Petroleum Engineering from the University of Alaska Fairbanks (1994). He is a registered Professional Engineer with the Texas Board of Professional Engineers (current status inactive) in the State of Texas, USA.

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

 

END

 

 

UPDMMGMDKLKGRZM