12 Feb 2010 07:00
For immediate release 12 February 2010
EGDON RESOURCES PLC
("Egdon" or "the Company")
Kirklington drilling operations
The Directors of Egdon Resources plc (AIM:EDR) provide an update on drilling operations at the Kirklington site in its Nottinghamshire licence PEDL203.
The Kirklington-3 well was drilled directionally using the BDF28 rig to a total depth of 821 metres against a planned depth of 980 metres and encountered the target Chatsworth Grit sandstone significantly deeper than predicted. The Chatsworth Grit was encountered below the interpreted field oil water contact with only poor oil shows seen and was interpreted as water bearing. As such, a decision was made to curtail the drilling of the planned horizontal section and to cement back the well to allow the drilling of a sub-vertical sidetrack (Kirklington-3z) close to the original Kirklington-2 producer to gain additional data and enable restoration of field production.
The Kirklington-3z well reached a total depth of 698 metres on 10 February 2010. The well encountered the Chatsworth Grit interval some 3.5 metres deeper than in the Kirklington-2 well which is located only 25 metres to the north-east. The reservoir was also thinner at 5.2 metres thick compared to 9.2 metres at Kirklington-2. Drill cuttings through the interval had oil staining and good oil shows. An open-hole completion has been run in Kirklington-3z to enable pumped production of the Chatsworth Grit.
The rig is currently being demobilised from site following which surface facilities will be reinstalled. The next well in Egdon's planned drilling programme is a sidetrack of the Keddington-2y well in Lincolnshire licence PEDL005 (Remainder). This will now commence in March once all drilling preparations are completed at the site.
Commenting on the drilling results Mark Abbott, Managing Director of Egdon said:
"These results have shown that the Kirklington field is far more complex than our pre-drill information indicated. We will be assessing the new information gathered to determine if further drilling activity and investment is warranted at Kirklington. In the meantime we look forward to putting the Kirklington-3z well onto production through the existing facilities."
Egdon is the operator and holds a 65% interest in the PEDL203 licence. Joint venture partner Terrain Energy Limited holds a 25% interest in the licence and on completion of the on-going farm-in Angus Energy will hold a 10% interest.
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 (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.