18 Jan 2016 07:00
18th January 2016
EGDON RESOURCES PLC
("Egdon" or "the Company")
Commencement of Drilling Operations - Keddington-5 Development Well
Egdon Resources plc (AIM:EDR) is pleased to announce the commencement of drilling operations on the Keddington-5 conventional sidetrack development well in UK Onshore Licence PED005R located in Lincolnshire.
Keddington-5 is a sidetrack of the Keddington-4 production well and is designed to target an area of the field where the sandstone reservoir has not been produced. The intent is to increase production and profitability from the field. Operations are expected to complete in early February.
Based upon an integrated geological and geophysical evaluation, Stock Tank Oil Initially in Place estimates indicate that the well will target an undrained volume that ranges between 309,000 and 566,000 barrels of oil.
The Keddington Oil Field was discovered in 1998 by Candecca and brought onstream the same year. Egdon acquired the then shut-in field from Roc Oil GB Limited in March 2007 and production was restarted in June 2007. Egdon has previously drilled two horizontal sidetrack wells, which produce oil from two Carboniferous age sandstones at a depth of around 2,200 metres. Egdon farmed-down its interest in the Keddington Oil Field in August 2015 to Terrain Energy Limited and Union Jack Oil plc, reducing its working interest from 75% to 45% and reducing its paying interest on the Keddington-5 well to 15%.
The Keddington Field interests are as follows:
Egdon Resources U.K. Limited | 45% (Operator) |
Terrain Energy Limited | 35% |
Nautical Petroleum Limited* | 10% |
Union Jack Oil plc | 10% |
*Nautical Petroleum Ltd is a 100% wholly owned subsidiary of Cairn Energy PLC
Commenting on the start of drilling operations at Keddington-5, Mark Abbott, Managing Director of Egdon, said:
"We are pleased to report the commencement of drilling operations at Keddington-5 and look forward to the potential for increased production and profitability from this mature field."
For further information please contact:
Egdon Resources plc
Mark Abbott 01256 702 292
Buchanan
Richard Darby, Anna Michniewicz 020 7466 5000
Nominated Adviser and Broker - Cantor Fitzgerald Europe
David Porter, Sarah Wharry (Corporate Finance) 020 7894 7000
Richard Redmayne (Corporate Broking)
Joint Broker - VSA Capital Limited
Andrew Monk (Corporate Broking) 020 3005 5000
Andrew Raca (Corporate Finance)
Notes to Editors:
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 France.
Egdon currently holds interests in thirty six licences in the UK and France and is awaiting the issue of a further nine new UK licences in the 14th Round. The Company has an active programme of exploration, appraisal and development within its balanced portfolio of oil and gas assets and is an approved operator in both the UK and France.
Egdon was formed in 1997 and listed on AIM in December 2004.
In accordance with the AIM Rules - Note for Mining and 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 26 years' experience.
Evaluation of potential recoverable hydrocarbons has been assessed in accordance with 2007 Petroleum Resources Management System prepared by the Oil and Gas Reserves Committee of the Society of Petroleum Engineers (SPE) and reviewed and jointly sponsored by the World Petroleum Council (WPC), the American Association of Petroleum Geologists (AAPG) and the Society of Petroleum Evaluation Engineers (SPEE).