25 Nov 2009 11:07
| For immediate release | 25 November 2009 |
EGDON RESOURCES PLC
("Egdon" or "the Company")
Operation Update - Dukes Wood-1 Well
The Directors of Egdon Resources plc (AIM:EDR), the UK-based exploration and production company primarily focused on the hydrocarbon-producing basins of onshore UK and Europe, are pleased to give an update on the planned drilling operations at Dukes Wood-1 in Nottinghamshire licence PEDL118. The Company has entered into a contract with British Drilling and Freezing Limited ("BDF") to use the BDF28 drilling rig to complete the drilling of the main section of Dukes Wood-1. The BDF28 drilling rig will mobilise to Dukes Wood-1 on completion of operations for another company which is currently anticipated to be in early December.
The Dukes Wood-1 well was drilled and cased to a depth of 47m in November 2008 and will now be re-entered and drilled directionally to a planned measured depth of around 800 metres. The well will test the crest of the Dukes Wood anticline in an area where Egdon have identified potential for un-drained and re-migrated oil. A previous 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 twelve days. 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 have identified low risk opportunities to add production, revenues and reserves.
Egdon is the operator of the PEDL118 licence. Egdon has contracted, subject to regulatory and other approvals, to sell a 25% interest to Terrain Energy Limited, and on completion, which is expected shortly, Egdon will hold a 75% interest and Terrain a 25% interest in the licence.
Further announcements will be made on commencement of drilling operations and then following results of the well, expected to be known later in December 2009.
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
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.