Preliminary Results of the Wressle-1 Well

RNS Number : 5626Q

Egdon Resources PLC

02 September 2014

 



                                                                                                                     2 September 2014

EGDON RESOURCES PLC

("Egdon" or "the Company")

Preliminary Results of the Wressle-1 Exploration Well

Egdon Resources plc (AIM:EDR) is pleased to announce the preliminary results from drilling of the Wressle-1 conventional exploration well located to the East of Scunthorpe. 

The Wressle-1 well was spudded on 18 July 2014 and on 23 August 2014 reached a total depth (TD) of 2240 metres measured depth (MD) (1814 metres true vertical depth below OS datum (TVDSS)).  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.  Preliminary 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)

The well is currently being completed with a 4 ½" liner to enable selective and sequential testing of these intervals as part of an extended well test, for which planning consent has already been received.  These test operations, which will be designed to determine the flow rates, hydrocarbon type and hence commerciality of the Wressle-1 well, will be undertaken using a work-over rig and are expected to commence during October 2014.  

Further updates will be given as these operations progress.

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%

Commenting on the results Mark Abbott, Managing Director of Egdon said:

"We are very encouraged by the preliminary evaluation of Wressle-1- our first exploration well in the East Midlands Basin - with interpretation of potential hydrocarbon pay of over 30 metres thickness (measured) in three discrete reservoir intervals. Our attention now moves to designing and delivering a testing programme for these intervals to determine the potential for a commercial discovery and we look forward to updating shareholders once these operations commence."

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:

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 holds interests in thirty seven 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.

The Wressle Prospect

The Wressle Prospect is defined on proprietary 3D seismic data, which was acquired by Egdon in February 2012.  The Prospect 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, are estimated to be 2.1 million barrels of oil.

Operations at this site will not - either now or in the future - involve the process of hydraulic 'fracking' for shale gas.

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).

 

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