17 Apr 2013 11:54
For Immediate Release: 17 April 2013
Wessex Exploration PLC
("Wessex" or "the Company")
Offshore French Guiana GM-ES-3 Exploration Well Initial Results and Operations Extended
Wessex Exploration PLC (AIM:WSX) announces the initial results of current drilling operations on the Guyane Maritime permit (French Guiana) and the decision to extend drilling operations to a deeper target.
The GM-ES-3 exploration well is the second well of a four well exploration drilling campaign that commenced in 2012 to follow up the oil discovery at GM-ES-1 in 2011.
The GM-ES-2 well had exploration objectives in the major Cingulata fan system within which the original oil discovery was made in two ages of formation. GM-ES-3 has been planned to deliver exploration information in the subsidiary Priodontes fan system to the north west of the Zaedyus oil discovery.
The GM-ES-3 well intersected a 50 metres gross section of oil stained sands in the lower part of the Bradypus fan which was not a target formation at this location although it is also within the main Cingulata fan system. A 325 metres gross interval of sands was encountered in the targeted Priodontes fan, but these were logged with no significant hydrocarbon shows.
It has been decided by the Shell, Total, Tullow Oil and Northpet Investments Limited joint venture that this well provides a suitable location to drill deeper in a plan to penetrate the full post Atlantic rift sequence. The duration of this additional drilling will depend upon results from the formations encountered.
This information may prove crucial to a fuller understanding of the exploration potential of this very large licensed area. Although this extension may cause a small delay to the further wells in this exploration programme, the earlier the deeper formations are examined and more knowledge of them is obtained, the better the advantages to be gained from using this enhanced understanding in the second part of the drilling programme to aid efforts towards discovering more oil.
The well is now targeted to reach a final depth of 6,438 metres subject to operational factors.
Malcolm Butler, Chairman of Wessex stated:
"Following the oil discoveries of GM-ES-1 in 2011, our further exploration of the Cingulata fan area has so far failed to encounter additional hydrocarbons. We are hopeful that we may yet find these in a deeper sand in GM-ES-3 and we look forward to drilling GM-ES-4 on the separate, Cebus fan.
Our drilling activities to date have given us valuable insights into the complex geological history of the Guyane Maritime permit and we expect to gain more useful information by deepening the current well. These insights are now being used to help delineate potential new prospects through the interpretation of the Central Area 3-D seismic acquired late last year."
The Company had a cash position of £6.5m at the end of March 2013, which provides sufficient financial resources to continue to participate fully in the planned drilling campaign in Guyane across the balance of 2013.
In accordance with the AIM Rules - Guidance for Mining and Oil & Gas Companies, the information contained in this announcement has been reviewed and signed off by the Chairman of Wessex, Dr Malcolm Butler PhD, BSc, CGeol, FGS who has over 40 years' experience as a petroleum geologist. He has compiled, read and approved the technical disclosure in this regulatory announcement. The technical disclosure in this announcement complies with the SPE/WPC standard.
For further information please contact:
Contacts | |
Wessex Exploration PLC | www.wessexexploration.com |
Malcom Butler - Chairman | +44 (0) 1225 428139 |
Andy Yeo, Chief Financial Officer | |
WH Ireland Limited | www.wh-ireland.co.uk |
John Wakefield (Corporate Finance) | +44 (0) 117 945 3470 |
Ruari McGirr / Sebastian Wykeham (Institutional Sales) | +44 (0) 207 220 1691 |
Yellow Jersey PR | +44 (0) 776 853 7739 |
Dominic Barretto | dominic@yellowjerseypr.com |
---------------------------------------------------------------------------------------------------------------------------------------
Notes to Editors on WSX:
Guyane
Wessex holds a net 1.25% interest in the Exclusive Exploration Licence (EEL) covering an approximate 24,100 sq.km offshore area of Guyane (a French prefecture previously known as French Guiana). The EEL interest is held via a 50/50 joint venture between Wessex and Northern Petroleum Plc, using Northpet Investments Limited as the holding company with a total interest of 2.5%. The other partners in Guyane are Shell (45% and operator), Tullow (27.5%) and Total (25%).
Juan de Nova
Wessex holds a 70% interest in the Juan de Nova Est Permit, covering 9,010 sq. km in water depths ranging from 200m to 3,000m, to the east of Juan de Nova Island in the Mozambique Channel. Wessex has been designated as operator, subject to the approval of the French authorities. Global Petroleum Limited (AIM: GBP, ASX: GBP) has a 30% interest.
Southern United Kingdom
Wessex holds three licences in southern United Kingdom - PEDL 238: 50%; PEDL 239: 25%; P1928: 35% - alongside its partner and operator, NWE Mirrabooka (UK) Pty. Ltd (a fully owned subsidiary of ASX listed Norwest Energy NL).
Saharawi Arab Democratic Republic (SADR, Western Sahara)
Wessex holds three blocks - Bojador (39,983 sq.km), Guelta (15,760 sq.km) and Imlili (16,955 sq.km) - under Assurance Agreements which cause Production Sharing Contracts to come into effect once the SADR government is able to take control of the territory. Wessex is the designated operator and holds a 50% interest; Tower Resources (AIM: TRP) has the other 50% interest.