13 Jan 2010 10:58
| For Immediate Release | 13 January 2010 |
EGDON RESOURCES PLC
("Egdon" or "the Company")
Commencement of drilling operations at Dukes Wood-1
The Directors of Egdon Resources plc (AIM:EDR) are pleased to report that drilling operations have commenced at the Dukes Wood-1 well in Nottinghamshire licence PEDL118.
The Dukes Wood-1 well was drilled and cased to a depth of 47 metres in November 2008 before being suspended. Drilling operations recommenced at 11:30 hours on 11 January 2010 using the British Drilling and Freezing Limited rig 28 ("BDF28"). The well will now be drilled directionally to a planned measured depth of around 800 metres. Dukes Wood-1 will test the crest of the Dukes Wood anticline in an area where Egdon has identified potential for un-drained and re-migrated oil. An abandoned well in this part of the structure was re-entered in 1992 and produced 180 barrels of oil during a short test from the upper interval of the Ashover Grit indicating the presence of recoverable oil. Operations are expected to take around two weeks. The primary target for the well will be the Ashover Grit reservoir interval with secondary reservoir objectives in the Sub-Alton Crawshaw, Loxley Edge Rock and Wingfield Flags all oil bearing on the structure. This is the first well in the evaluation of the rejuvenation potential of the Eakring-Dukes Wood oil field where Egdon has identified low risk opportunities to add production, revenues and reserves.
Egdon holds a 75% interest in and is operator of the PEDL118 licence. Joint venture partner Terrain Energy Limited holds a 25% interest in the licence.
Following completion of operations at Dukes Wood-1 the BDF28 rig will mobilise to the Kirklington oil field to drill a sidetrack of the Kirklington-2 production well.
Further announcements will be made as operations progress.
For further information please contact:
| Egdon Resources plc Mark Abbott Managing Director | 01256 702292 |
| Buchanan Communications Ben Willey, Miranda Higham | 020 7466 5000 |
| Nominated Adviser and Broker - Seymour Pierce Jonathan Wright, Sarah Jacobs, Richard Redmayne | 020 7107 8000 |
Company Background
Egdon Resources plc 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 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 Resources plc listed on AIM in January 2008, following the demerger of its gas storage business, Portland Gas plc. The pre-demerged business was formed in 1997 and listed on AIM in December 2004.
www.egdon-resources.com
The Eakring Dukes-Wood Oil Field
The Eakring-Dukes Wood oil field was discovered in 1939 and produced from a number of shallow sandstone reservoirs of Carboniferous age from 1940 until 1966. The total production by 1966 was 6.5 million barrels out of mapped oil in place of 25.6 million barrels. The remaining wells on the field were plugged and abandoned by BP in the 1990s. Egdon believes there is potential to rejuvenate the field to take advantage of increased oil price, improved technology and the recognition of undrilled and un-drained parts of the field.
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.