11 Aug 2009 11:08
| For Immediate Release | 11 August 2009 |
EGDON RESOURCES PLC
("Egdon" or "the Company")
Production Commences from Kirklington oil field
Egdon Resources plc (AIM:EDR), the UK-based exploration and production company primarily focused on the hydrocarbon-producing basins of onshore UK and Europe, is pleased to announce the commencement of production from its Kirklington oil field in PEDL203 located in Nottinghamshire.
Following a period of commissioning and testing, the Kirklington-2 well was returned to continuous pumped production on 28 July 2009. As at 7 August 2009 the well had produced a total of 325 barrels of oil at an average daily rate of 32 bopd. Associated water production over the period was 640 barrels with an average water cut of 66%. This is in line with management's expectations. The Kirklington-2 well has two oil producing intervals; the Sub-Alton Crawshaw and the Chatsworth Grit. The well is currently completed for production from the Chatsworth Grit.
It is intended to continue producing the existing well until later in 2009 when a sidetrack will be drilled to an up-dip area of the Kirklington field to access additional oil reserves from both producing intervals. Planning approval is already in place for this operation.
The Kirklington oil field was originally discovered by BP in 1986. Production from the Sub-Alton Crawshaw reservoir occurred between 1991 and 1998 and from the Chatsworth Grit reservoir from 2003 to 2004. Egdon acquired the current well-site from Star Energy in 2008.
Commenting on the commencement of production, Mark Abbott, Managing Director of Egdon, said:
"The commencement of production from the Kirklington-2 well is the first stage in the re-juvenation of the Kirklington oil field. Having gained all authorisations and completed the upgrading of the facilities at the site we look forward to the next phase of development with the drilling of a sidetrack well to access additional reserves and increase daily oil rates and cash flow from the field. In the meantime we welcome the incremental production and revenues. "
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 three 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.
In addition to Kirklington, Egdon has production from the Keddington oil field in the East Midlands and the Avington oil field in Hampshire. Further oil and gas production is anticipated from Waddock Cross and Eakring-Dukes Wood during 2009.
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.
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.