EDR.L Regulatory News (EDR)

21 Feb 2006 07:01

Egdon Resources PLC21 February 2006 For immediate release 21st February 2006 EGDON RESOURCES PLC Operations Update: Gas Zones Logged at Westerdale-1 Egdon Resources Plc ("Egdon" or "the Company") the UK based independent oil andgas exploration and production company is pleased to provide an update onongoing operations on its UK licences. The BDF28 drilling rig has completed drilling and logging operations atWesterdale-1 on North Yorkshire licence PEDL068 in which Egdon holds a 20%interest. The Westerdale-1 well reached a Total Depth of 1304.5 m within rocksof Carboniferous age on the 17th February 2006. During drilling gas shows wereencountered within the Permian age Brotherton carbonate and also inCarboniferous sandstones. Logging operations have now been completed andevaluation indicates potential gas pay in these two intervals which will beconfirmed by testing. The top of the Brotherton carbonate was encountered deeper than expected at ameasured depth of 905m due to a thickened high velocity Triassic section. Thelower interpreted gas column is in sandstones of Carboniferous age which werepenetrated at a measured depth of 1188m. The Westerdale-1 well is currently being completed with 7" casing to allow thetesting of both intervals of interest. Testing operations will be undertakenusing a work-over rig and are planned for March to follow on from testing of theKirkleatham-4 well. Planning conditions at Westerdale-1 dictate that testingoperations are restricted to the period 1st October to 31st March. Furtherdetails will be released once the test results have been fully evaluated. Testing of the Kirkleatham-4 well, where a c.19m gas column was encounteredwithin an interval of high gas saturations and good porosity development in theCadeby Formation, is planned to commence on 27th February with operationsanticipated to take approximately 15 days. The test completion will enable thewell to be suspended for future production. Details of the results will bereleased once all data from the test have been analysed. Planning is alsoongoing for potential seismic acquisition over the Kirkleatham accumulation. On conclusion of operations at Westerdale-1 the drilling rig will mobilise tothe Portland-1 well site in Dorset where drilling operations are expected tocommence at the beginning of March 2006. Portland-1 which will be operated byEgdon on behalf of its wholly owned subsidiary, Portland Gas Limited, will be avertical well drilled to a total depth of around 2500 m. Drilling, coring andtesting operations are expected to take around 50 days. Data from the well willenable the determination of the thickness and suitability of the salt intervalto create caverns at the proposed Portland Gas Storage Project. In Dorset licence PL090 the initial phase of testing has been completed on theWaddock Cross-3 well with equipment now demobilised from the site whilst datafrom the test is analysed to enable the design and procurement of pump andprocess equipment for future testing operations. Drilling operations are also continuing at the Avington-3 well on the StarEnergy operated licence PEDL070 in the Weald Basin. For further information please contact: Egdon Resources Plc Mark Abbott, Joint Managing Director 01256 702292Andrew Hindle, Joint Managing Director Buchanan Communications Eric Burns 01943 883 990Ben Willey 020 7466 5000 Notes to the Editors In the PEDL068 licence in the Cleveland Basin the Company holds a 20% workinginterest but was carried for 10% of the first well, Kirkleatham-4, and alsoholds an option to increase its interest to 25%. The Portland-1 gas storageconfirmation well will be drilled by Egdon from a site leased by its whollyowned subsidiary, Portland Gas Limited. The Company holds a 45% working interestin the PL090 licence in the Wessex Basin Company Background Egdon is an established, UK-based energy company primarily focused on thehydrocarbon-producing basins of the onshore UK. Egdon also has explorationinterests in the offshore UK and France. Egdon was formed in 1997 by Dr Andrew Hindle and Mark Abbott. In December 2004,Egdon's shares commenced trading on AIM, having been previously traded on Ofexsince July 2000. The Company is developing two major business areas: An oil and gas exploration and production business which has a portfolio oftwenty exploration licences containing identified oil and gas prospects rangingfrom discoveries under appraisal through to higher risk but higher reward "wildcat" exploration prospects. A gas storage business initially focused on the prospective development of amajor salt cavern gas storage facility beneath the Isle of Portland, Dorset. This information is provided by RNS The company news service from the London Stock Exchange