27 Mar 2015 07:00
EGDON RESOURCES PLC 27 March 2015
("Egdon" or "the Company")
Update on Wressle-1 Well Testing - Results of Second Penistone Flags Flow Test and Forward Programme
Egdon Resources plc (AIM:EDR) is pleased to announce the results of the second Penistone Flags flow test at the Wressle-1 oil and gas discovery in licence PEDL180 located to the East of Scunthorpe, where Egdon operates with a 25% interest.
To date, the Wressle-1 well has flowed oil and gas from three separate reservoirs, the Ashover Grit, the Wingfield Flags and the Penistone Flags. The flow test result from Zone 3a has confirmed the presence of an oil column below the gas leg in Zone 3 of the Penistone Flags.
The downhole pressure and oil sample data from all tests will now be interpreted and integrated into an updated field model to inform future development planning. The next steps in evaluating the discovery will be to undertake a pumped extended well test (EWT) of the Ashover Grit and Penistone Flags oil intervals to quantify the production levels that could be attained during production.
Commenting on the test results and the planned forward programme at Wressle, Mark Abbott Managing Director of Egdon Resources said;
"The results from Wressle continue to be very positive. The latest test has confirmed the presence of an oil column below the gas zone in the Penistone Flags, albeit in tighter sandstones. To date the well has successfully flowed hydrocarbons from four discrete intervals, with the Penistone Flags delivering a facilities restricted gas flowrate of 1.7 mmcfd, plus an aggregate 89 bopd; free-flowing rates of up to 182 bopd and 0.46 mmcfd from the Wingfield Flags and 80 bopd from the Ashover Grit. This totals 710 barrels of oil equivalent per day from all zones.
We are now planning a pumped EWT to validate the optimised production potential that could be obtained from the Wressle discovery. We will now focus on integration and interpretation of the engineering and geotechnical data that will provide the information needed to quantify the resource volumes and optimise the field development and monetisation options. The EWT is planned to commence in mid May with operations expected to continue for up to two months."
For further information please contact:
Egdon Resources plc
Mark Abbott, Jerry Field 01256 702 292
Buchanan
Richard Darby, Anna Michniewicz 020 7466 5000
Nominated Adviser and Broker - Cantor Fitzgerald Europe
David Porter, Sarah Wharry (Corporate Finance) 020 7894 7000
Richard Redmayne (Corporate Broking)
Joint Broker - VSA Capital Limited
Andrew Monk (Corporate Broking) 020 3005 5000
Andrew Raca (Corporate Finance)
Notes to Editors:
The Wressle Oil Discovery -The Wressle Prospect was defined on proprietary 3D seismic data, which was acquired by Egdon in February 2012. The structure is located on trend with the producing Crosby Warren oil field and the Broughton-B1 oil discovery, both to the immediate northwest, and the Brigg-1 oil discovery to the immediate southeast. All contain oil in various different sandstone reservoirs within the Upper Carboniferous succession. The pre-drill gross mean Prospective Resources at Wressle, as calculated by Egdon, were estimated to be 2.1 million barrels of oil. This will be updated following the results of the current test operations.
The Wressle-1 well reached a total depth (TD) of 2240 metres measured depth (MD) (1814 metres true vertical depth below OS datum (TVDSS)) on 23 August 2014. Elevated mud gas readings were observed over large parts of the interval from the top of the Penistone Flags reservoir target (1831.5 metres MD) to TD.
The well was logged using measurement whilst drilling (MWD) logging tools run on the drill string. Petrophysical evaluation of the log data has indicated the presence of potential hydrocarbon pay in three main intervals;
· Penistone Flags - up to 19.8 metres measured thickness (15.9 metres vertical thickness)
· Wingfield Flags - up to 5.64 metres measured thickness (5.1 metres vertical thickness)
· Ashover Grit - up to 6.1 metres measured thickness (5.8 metres vertical thickness)
On 9 February we updated shareholders on the successful Ashover Grit Flow Test which recorded 80 barrels of oil per day and 47 thousand cubic feet of gas per day during a 16 hour main flow period. No appreciable volumes of water were observed. The oil is of good quality with a gravity of 39-40° API.
On 19 February we updated shareholders on the successful Wingfield Flags Flow Test which recorded up to 182 barrels of oil per day of good quality 39-40 API oil were achieved on free flow, along with up to 456 thousand cubic feet of gas per day.
On 27 February we updated shareholders the initial successful Penistone test which produced gas at restricted flowrates of up to 1.7 million cubic feet of gas per day with associated oil of up to 12 barrels of oil per day and no free water.
The interests in the Wressle-1 well are:
Egdon Resources U.K. Limited 25.00% (Operator)
Celtique Energie Petroleum Limited 33.33%
Europa Oil & Gas Limited 33.34%
Union Jack Oil plc 8.33%
Operations at this site will not involve the process of hydraulic 'fracking' for shale gas.
Egdon Resources plc -Egdon Resources plc (LSE: EDR) 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 France.
Egdon currently holds interests in thirty 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 was formed in 1997 and listed on AIM in December 2004.
In accordance with the AIM Rules - Note for Mining and 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 26 years' experience.
Evaluation of potential recoverable hydrocarbons has been assessed in accordance with 2007 Petroleum Resources Management System prepared by the Oil and Gas Reserves Committee of the Society of Petroleum Engineers (SPE) and reviewed and jointly sponsored by the World Petroleum Council (WPC), the American Association of Petroleum Geologists (AAPG) and the Society of Petroleum Evaluation Engineers (SPEE).