Operations Update

RNS Number : 3152K

Silvermere Energy PLC

20 August 2012

 



20th August 2012

Silvermere Energy plc

("Silvermere" or the "Company")

Operations Update

Silvermere, the independent oil and gas company focused principally on appraisal and production opportunities in the US, is pleased to announce further progress with the tie-in of the I-1 well in its Mustang Island 818-L Field. This is based on information provided by the Operator, Dominion Production Company LLC ("Dominion").

The pipeline installation was completed on 10th August 2012 and the sub-sea tie-in was completed and tested on 15th August. All sub-sea valves have been opened ready for flow and the overall installation project was substantially completed on 18th August. The contractors' installation equipment and barges were demobilized on the same day. Hook-up at the platform end is awaiting a replacement flange assembly which is expected to be installed in the next day or so. Once opened to initial flow, it is expected that it will take approximately one week to charge the pipeline with gas and condensate and for the hydrocarbons to reach the shore receiving facilities.

 Andy Morrison, Chief Executive of Silvermere said: "We are pleased to note the safe and generally smooth installation operation of the platform and we look forward to seeing the first gas and condensate come ashore in the next few days".

Further updates will be provided as the work progresses.

--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/Catherine Miles	+ 44(0)20 7628 2200
Peterhouse Corporate Finance Limited Jon Levinson	[phone]
Bishopsgate Communications Nick Rome/ Anna Michniewicz/ Ivana Petkova	[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.

 

END

 

 

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