Last checked at 30 Aug 2012 07:00
30th August 2012
Silvermere Energy plc
("Silvermere" or the "Company")
Operations Update
Silvermere, the independent oil and gas company focused principally on appraisal and production opportunities in the US, is pleased to announce further progress with the tie-in of the I-1 well in its Mustang Island 818-L Field. This is based on information provided by the Operator, Dominion Production Company LLC ("Dominion").
The hook-up of the well at the platform end was completed on 24th August 2012 and the well was opened up to flow to begin the testing sequence. Some small gas leaks were initially encountered and subsequently repaired and a modification to a control device was also completed on 28th August 2012 so as to make it possible to leave the well running in an unmanned state. The testing sequence and charging of the pipeline has resumed.
Further updates will be provided as the work progresses.
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For further information please contact:
Silvermere Energy plc Andy Morrison, Chief Executive
|
+44 (0)7980 878 561 |
Merchant Securities Limited (Nominated Adviser and Broker) Lindsay Mair/Virginia Bull/Catherine Miles
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+ 44(0)20 7628 2200 |
Peterhouse Corporate Finance Limited Jon Levinson
| +44 (0)20 7469 0937 |
Bishopsgate Communications Nick Rome/Anna Michniewicz/Ivana Petkova | +44(0)20 7562 3350 |
About Silvermere Energy PLC
The Company acquired its interest in the Mustang Asset on 30 August 2011. This comprises a 33.33 per cent. working interest and 20.83 per cent. net entitlement interest in the Mustang Licence Area, an area within the southern half of the north west quarter and northern half of the south west quarter of the Block 818-L field as defined in State of Texas Oil and Gas Lease numbers 108873 and 108874. The Mustang Island 818-L field, located in Kleberg County waters of the Gulf of Mexico, is a field re-habilitation project targeting bypassed or only partially produced gas-condensate.
Early in 2011, the Hercules Offshore 205 jack-up rig was contracted to re-enter the I-1 Well on the Mustang Licence Area, which was considered to be the most likely of the historic well sites to provide 14 optimum re-entry conditions. The I-1Well re-entry and side-tracking operation was completed in March 2011 leaving it ready to complete in sand horizons I-1 to I-6. Production and flow testing was carried out during June 2011. The well re-entry programme was led by Dominion as the operator. Gas and oil produced from the I-1 Well is proposed to be connected to pipeline infrastructure and tied in via a subsea assembly, constructed for the purpose and then transported to the Six Pigs gas facility.
Silvermere's strategy is to acquire a portfolio of US oil and gas licence interests onshore and in shallow offshore waters, characterised by relatively low risk and low cost with the potential for near term production.
Silvermere is quoted on the AIM Market of the London Stock Exchange plc (AIM: SLME) with its offices in London.