8 Apr 2010 07:00
Immediate Release 8 April 2010
EGDON RESOURCES PLC
("Egdon" or "the Company")
Commencement of Keddington-3 drilling operations
The Directors of Egdon Resources plc (AIM:EDR) are pleased to report the start of drilling operations at the Keddington oil field in Lincolnshire Licence PEDL005(Remainder).
Egdon holds a 75% interest in and is operator of the PEDL005(Remainder) licence. The joint venture partners are Terrain Energy Limited ("Terrain"), which holds a 15% interest and Alba Resources Limited ("Alba"), a wholly owned subsidiary of Nautical Petroleum plc (AIM: NPE), which holds a 10% interest.
The Keddington-3 well will be drilled as a re-entry and horizontal sidetrack from the Keddington-2y "donor" well which was drilled by Roc Oil in 2000. The well has been contributing 25-30 bopd to field production since being recompleted for pumped production by Egdon in early 2009. However, well productivity has been restricted since the well was drilled, by the presence of a drilling assembly stuck in the open hole just below the existing casing and perforations. It is intended to significantly increase field production and hence profitability by drilling the Keddington-3 sidetrack which is planned to penetrate approximately 500 metres of new horizontal section largely in the oil productive Unit 1 Sandstone.
The British Drilling and Freezing Limited BDF28 drilling unit began mobilising to site on 29th March and operations began on Thursday 1st April. The plugging-back of the existing well has now been completed and the drilling of the sidetrack commenced at 20.00 hours on 6th April from a kick-off depth of 2250 metres. The well is intended to be drilled directionally to a total measured depth of 2850 metres. Drilling and completion operations are expected to last a total of around three weeks.
The well is expected to be completed for pumped production using the existing surface production facilities shortly after the rig is released from site.
Production from the adjacent Keddington-1z well has been suspended for safety reasons during the drilling operations and will resume once the rig has been demobilised from site.
The commencement of drilling operations at Keddington also triggers a payment of £50,000 from Terrain as the final part of the consideration for the acquisition of its interest in the licence.
Further announcements will be made as operations progress.
For further information please contact:
Egdon Resources plc
Mark Abbott 01256 702292
Buchanan Communications
Richard Darby, James Strong 020 7466 5000
Nominated Adviser and Broker - Seymour Pierce
Jonathan Wright, Richard Redmayne 020 7107 8000
Company Background
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 Europe.
Egdon currently holds interests in twenty four 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 has production from the Keddington and Kirklington oil fields in the East Midlands and the Avington oil field in Hampshire. Further oil and gas production is anticipated from Eakring-Dukes Wood, Waddock Cross and Kirkleatham in 2010.
Egdon have also recently announced the planned acquisition of a package of UK and French assets from EnCore Oil plc. On completion of this transaction Egdon will have additional production from the Ceres gas field and a significantly expanded acreage position with a total of thirty licences in the UK onshore, one offshore UK and five permits in France (plus two pending award).
Egdon Resources plc listed on AIM in January 2008, following the demerger of its gas storage business, Portland Gas plc (now renamed Infrastrata plc). The pre-demerged business was formed in 1997 and listed on AIM in December 2004.
www.egdon-resources.com
In accordance with AIM rules - guidance for mining, 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 23 years experience.