Share Price Movement

RNS Number : 2872O

Silvermere Energy PLC

09 October 2012

 



9 October 2012

Silvermere Energy plc

("Silvermere")

Share Price Movement

Silvermere, the independent oil and gas company focused principally on appraisal and production opportunities in the US, notes the upwards movement in its share price this morning.  Silvermere also notes the following announcement released on 8 October 2012 by Worthington Energy, Inc on the OTC QB market regarding its interest in the I-1 Well (in the Gulf of Mexico, in which Silvermere also owns a working interest.

'Worthington Energy, Inc. (WGAS) ("Worthington" or the "Company"), an energy company engaged in the acquisition, exploration, development and drilling of oil and natural gas properties, today reports the results of the October 3, 2012 "4 Point Test" on the Company's I-1 Well. The 4 point test, which is required by the Railroad Commission of Texas (RRC), the state regulatory agency for the oil and gas industry, measures the deliverability of a well as defined by the well's capacity to produce, and is used by the RRC to allocate production quotas.

"We brought the I-1 Well on line in order to complete the 4 point test. The well was opened on a 7 choke and was allowed to stabilize for three (3) hours," stated Worthington Energy, Inc. President & CEO, Mr. Tony Mason. "We flowed well on both a 6 choke and a 7 choke, and the extrapolated oil rate flow ranged between approximately 200 to 400 BOEPD (barrels of oil equivalent per day)." Choke valves are used to control high pressure flow, especially in flow from oil and gas wells; the larger the opening, the greater the flow.

"Overall, this is an excellent result," continued Mr. Mason. "In order to enable steady oil and gas production to take place, the 6 choke will be our initial production choke once we get the pipeline charged, The oil produced was 38.3 API WTI. Based on these results the I-1 will probably end up being classified as an Oil Well and not a Gas/Condensate Well."

"The pipeline pressure was up to 80 psi but we still need to be at least 300 to 400 psi in order to begin 24 hour production. We are currently pressuring up the line and should be fully charged in the next few days," concluded Mr. Mason.'(-ENDS-)

Silvermere views the early production profile from the I-1 well as encouraging but highlights that the result of the four-point test has not yet been reported in full by the operator.   

Silvermere will make a further announcement once the complete results of the four-point test have been made available and assessed.

---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-1 Well 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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