EDR.L Regulatory News (EDR)

14 Dec 2005 07:00

Egdon Resources PLC14 December 2005 14 December 2005For immediate release EGDON RESOURCES PLC Operations Update Egdon Resources Plc ("Egdon" or "the Company") is pleased to advise that theBDF28 drilling rig has completed drilling operations at Waddock Cross-3 inDorset and is now mobilising to the Kirkleatham-4 wellsite in Cleveland wheredrilling operations are expected to commence on or around Thursday 15 December. At Waddock Cross-3, a 695 metre horizontal section was drilled and completedwith pre-drilled tubing through the Bridport Sandstone reservoir. The well wasdrilled to a total depth of 1510 metres (661.5 metres true vertical depth). Thewellsite is now being prepared for an extended well test (EWT) using a pump-jack(nodding donkey) which is expected to commence later in December. Initialresults are expected to be known during January. The Kirkleatham-4 well will target the Kirkleatham prospect which is locatedbeneath and to the west of the town of Redcar in Cleveland. The structure wasoriginally tested by two wells in the mid 1940s, with testing producingsub-commercial gas-flows in both wells from Permian age Zechstein carbonates.Seismic data shows the potential to apply modern drilling and completiontechniques up-dip of both wells. The Kirkleatham-4 exploration well will testfor the presence of an effective gas reservoir in this up-dip area of thestructure. Kirkleatham-4 will be drilled as a vertical well to a prognoseddepth of 900 m and is anticipated to take 15 days to drill. For further information please contact: Egdon Resources Plc 01256 702292Mark Abbott, Joint Managing DirectorAndrew Hindle, Joint Managing Director Buchanan Communications 020 7466 5000Eric BurnsBen Willey Notes to the Editors: Kirkleatham-4 is located in the PEDL068 licence (Kirkleatham-4, Westerdale-1) inthe Cleveland Basin where the Company holds a 20% working interest but iscarried for 10% of the first well, Kirkleatham-4, and also holds an option toincrease its interest to 25%. The Waddock Cross-3 well was drilled within thePL090 in the Wessex Basin where the Company holds a 45% working interest. 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 andgas exploration and production business which has a portfolio of twentyexploration licences containing identified oil and gas prospects ranging fromdiscoveries under appraisal through to higher risk but higher reward "wild cat"exploration prospects; and a gas storage business initially focused on thedevelopment of a salt cavern gas storage facility on the Isle of Portland,Dorset. This information is provided by RNS The company news service from the London Stock Exchange