Last checked at 1 Feb 2018 07:00
1 February 2018
Curzon Energy Plc
("Curzon Energy" or the "Company")
Commencement of Well Testing
Coos Bay Coalbed Methane Gas Field, Oregon, USA
Curzon Energy Plc, the 100% owner of the 45,000 acre Coos Bay Coalbed Methane (CBM) Project, is pleased to announce that following the recent completion of workover operations, well testing operations on all five existing wells at Coos Bay have now commenced.
Highlights
· Testing started on the 29th of January 2018
· Contract awarded to Wood Group USA, specialists in CBM well operations, to assist with optimization of well testing and field production design
· All five existing wells (1-21, 9-21, 15-21, 13-15 and 16-16) in operation
· Recording of gas and water production volumes underway
· Wells showing signs of early gas production
· Gas rates anticipated to increase steadily with reservoir water removal
Early results of the well testing at Coos Bay confirm that the coals are fully saturated and do not require the intervention of a long-term dewatering processes, which is evident from the early indications of gas production.
In parallel with the start of the testing program, the Company is advancing the installation of a water disposal system, a gas sales contract and a trunk line connection for future gas sales. The Phase One development plan for Coos Bay remains on track to deliver first gas in Q2 2018.
Stephen Schoepfer, Managing Director of Curzon Energy said:
"We are delighted to have entered the testing phase of our Phase One development plan at Coos Bay where results thus far fall in line with our technical assumptions. We remain on track to deliver first gas in Q2 2018 and I look forward to updating the market on aggregate test results in due course."
An updated investor presentation can be viewed on the Curzon website here: http://www.curzonenergy.com/investor-relations/reports-and-presentation/2018
For further information please contact:
Curzon Energy PLC | c/o Camarco |
Stephen Schoepfer / Thomas Wagenhofer | +44 20 3757 4980 |
www.curzonenergy.com | |
SP Angel Corporate Finance LLP | +44 20 3470 0470 |
Richard Hail / Richard Redmayne | |
Camarco (Financial PR) | +44 20 3757 4980 |
Georgia Edmonds / Owen Roberts / Monique Perks |
Notes to Editors:
Curzon Energy Plc, is the 100% owner of the 45,000 acre Coos Bay Coalbed Methane (CBM) Project, located in Oregon USA. Coos Bay has 2C contingent gas resources of 273.5 BCF.
The Company is implementing a cost effective staged development plan, targeting first gas and cash generation from Phase I in Q2 2018. The Phase I work programme consists of the low-cost workover of five existing, and drilling of two new wells.
The Company is led by an experienced Board and senior management team who have extensive industry and financial experience. Curzon Energy is listed on the LSE Main Market under the ticker CZN.
About Coalbed Methane (CBM):
Coalbed methane gas (CBM) (or coal seam gas (CSG) or coal-mine methane (CMM)), is a form of natural gas extracted from coal seams or coal deposits. CBM is generated during the process of coalification which is the transformation of plant material into coal and is contained in the coal microstructure. Typical CBM recovery entails initially pumping water out of the coal to allow the natural gas to escape. Methane is the principal component of the natural gas from CBM production, which is typically made up of ~95 per cent methane and normally does not contain hydrogen sulphide or other sulphur compounds. Natural gas produced from CBM can normally be added to natural gas pipelines without any special treatment.
The United States has the longest history and greatest volumes of CBM production, however, other
countries such as Canada, China and Australia have increased production over recent decades.
Competent Person's Statement
The information contained in this announcement has been reviewed and approved by Thomas Wagenhofer, Technical Director of Curzon, who is a petroleum engineer and oil and gas executive with over 20 years' international industry experience. Mr. Wagenhofer holds a MS degree in Petroleum Engineering from the University of Texas at Austin (1995) and a BS degree in Petroleum Engineering from the University of Alaska Fairbanks (1994). He is a registered Professional Engineer with the Texas Board of Professional Engineers (current status inactive) in the State of Texas, USA.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.