Operations Update

RNS Number : 2883B

Silvermere Energy PLC

13 April 2012

 



13 April 2012

Silvermere Energy plc

("Silvermere" or the "Company")

Operations Update

Silvermere, the independent oil and gas company focusing principally on appraisal and production opportunities in the US, is pleased to provide the following update on preparations for production from the I-1 well in its Mustang Island 818-L Field. This is based on information provided by the Operator, Dominion Production Company LLC.

Load out of the platform, tripod and pilings commenced on Monday 9^th April, 2012.  The load out phase involves the tripod, platform and associated equipment being loaded and "tied down" onto the barges which are currently on location at Laredo's yard in Galveston. Once loaded, the barges will be towed by tugs to the designated well location.

The installation is a 3 phase programme. First, the tripod base structure is installed. This operation is conducted by pile driving large metal supports through the legs of the tripod into the seabed to ensure the stability of the structure. The pilings will be driven to 180' below the mud line or to the point of refusal. 

Phase 2 involves the main deck structure being raised by crane barge and lowered onto the tripod and welded in place.

Phase 3 is the pipeline hook up.

Operations are under the control of Laredo Construction, Inc. under a turnkey installation contract.  As such, Laredo will monitor the weather and determine when the conditions are conducive to safe operations.  Although we are now into April, the weather remains a factor, particularly for Phase I of the programme and operations may be affected.

The facility has been designed to allow for the production from 3 future wells and we view the installation of this platform as a major milestone in the development of the reserves in the Mustang Island 818 Leases.

Further updates will be provided as the installation programme continues.

--ENDS--

For further information please contact:

Silvermere Energy plc Andy Morrison, Chief Executive	[phone]
Merchant Securities Limited (Nominated Adviser and Broker) Lindsay Mair/Virginia Bull	+ 44(0)20 7628 2200
Rivington Street Corporate Finance Limited Jon Levinson	[phone]
Bishopsgate Communications Nick Rome/Shabnam Bashir	[phone]

About Silvermere Energy PLC

The Company acquired its interest in the Mustang Asset on 30 August 2011.  This comprises a 33.33 per cent. working interest and 20.83 per cent. net entitlement interest in the Mustang Licence Area, an area within the southern half of the north west quarter and northern half of the south west quarter of the Block 818-L field as defined in State of Texas Oil and Gas Lease numbers 108873 and 108874. The Mustang Island 818-L field, located in Kleberg County waters of the Gulf of Mexico, is a field re-habilitation project targeting bypassed or only partially produced gas-condensate.

Early in 2011 the Hercules Offshore 205 jack-up rig was contracted to re-enter the I-1 Well on the Mustang Licence Area which was considered to be the most likely of the historic well sites to provide 14 optimum re-entry conditions. The I-1Well re-entry and side-tracking operation was completed in March 2011 leaving it ready to complete in sand horizons I-1 to I-6. Production and flow testing was carried out during June 2011. The well re-entry programme was led by Dominion as the operator. Gas and oil produced from the I-1Well is proposed to be connected to pipeline infrastructure and tied in via a subsea assembly, constructed for the purpose and then transported to the Six Pigs gas facility.

Silvermere's strategy is to acquire a portfolio of US oil and gas licence interests onshore and in shallow offshore waters, characterised by relatively low risk and low cost with the potential for near term production.

Silvermere is quoted on the AIM Market of the London Stock Exchange plc (AIM: SLME) with its offices in London.

 

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