Update on Timing of Wressle-1 Well Testing

RNS Number : 7924Y

Egdon Resources PLC

04 December 2014

 



                                                                                                                     4 December 2014

EGDON RESOURCES PLC

("Egdon" or "the Company")

Update on Timing of Wressle-1 Well Testing

Egdon Resources plc (AIM:EDR) provides an update on the timing of the testing programme for the  Wressle-1 well located in licence PEDL180 to the East of Scunthorpe in Lincolnshire. 

We are pleased to advise that the Environment Agency permit variation for testing operations was issued on 1st December 2014.  The permit includes additional monitoring requirements to those originally envisaged under Egdon's own risk assessment process and a requirement for a notice period of four weeks for the EA to approve the proposed monitoring methodology to meet these additional requirements.  We will submit the revised method statement this week and as such we now expect to begin mobilisation to the Wressle-1 site during the week beginning 5^th January 2015 with testing operations to start shortly thereafter.

As previously reported petrophysical evaluation of log data acquired in the Wressle-1 well and elevated gas readings recorded whilst drilling indicate the presence of potential hydrocarbon pay in three main intervals, and the well has been completed with a 4 ½" liner to enable selective and sequential testing of these intervals. The test operations are designed to determine the hydrocarbon type and potential flow rates and hence commerciality of the Wressle-1 discovery.

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 update Mark Abbott, Managing Director of Egdon said;

"We are pleased to have the EA permit in place and can look forward with a clear timeline now for the commencement of testing of up to three potentially hydrocarbon bearing zones at Wressle-1 with mobilisation planned to start immediately in the New Year."

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 Structure

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, are estimated to be 2.1 million barrels of oil.

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 six 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).

 

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