Commencement of Keddington-4 drilling operations

RNS Number : 6642E

Egdon Resources PLC

11 April 2011

 



                                                                                                   11 April 2011

EGDON RESOURCES PLC

("Egdon" or "the Company")

Commencement of Keddington-4 drilling operations

Egdon Resources plc (AIM:EDR) is pleased to announce the start of drilling operations at the Keddington oil field on Lincolnshire Licence PEDL005(Remainder).

Egdon holds a 75% interest in and is operator of the PEDL005(Remainder) licence.  The joint venture partners are Terrain Energy Limited ("Terrain"), holding a 15% interest and Alba Resources Limited ("Alba"), a wholly owned subsidiary of Nautical Petroleum plc (AIM: NPE), with a 10% interest.

The Keddington-4 well will be drilled as a re-entry and horizontal sidetrack from the Keddington-1Z "donor" well, which was drilled by Candecca Resources in 1998.  This oil production well has been shut-in since the drilling of Keddington-3 and 3Z in April 2010.  Keddington-4 is planned to penetrate approximately 200 metres of producing Unit 1 sandstone in a new horizontal section.  The well is also planned to penetrate the deeper "Namurian" sandstones, which had gas indications in Keddington-3 to provide additional information on this potential gas bearing zone.

The British Drilling and Freezing Limited BDF28 drilling unit began mobilising to the site on 1 April and operations began on 4 April. The plugging-back of the existing well has been completed and the drilling of the sidetrack commenced at 0700 hours on 9 April from a kick-off depth of 2080 metres.  The well is intended to be drilled directionally to a total measured depth of around 2750 metres.  Drilling and completion operations are expected to last a total of around three weeks.

The well is expected to be completed for free-flowing or pumped production using the existing surface production facilities shortly after the rig is released from the site. 

Keddington-4 is designed to increase total field production at a time of high oil prices and provide additional reservoir information in an untested part of the structure to factor into the investment decision on the scale of the gas to electricity generation project planned for the field.  This is expected to provide an important additional revenue stream and eventually will enable unconstrained production of oil from the field.

Production from the adjacent Keddington-3z well has been suspended for safety reasons during the drilling operations and will resume once the rig has been demobilised from site and the flow characteristics of Keddington-4 has been determined.

A further announcement will be made at the conclusion of operations.

For further information please contact:

Egdon Resources plc

Mark Abbott                                                                                           01256 702292

                                                                                                                 www.egdon-resources.com

Buchanan Communications

Richard Darby, James Strong, Gabriella Clinkard                       020 7466 5000

Nominated Adviser and Broker - Seymour Pierce

Jeremy Porter, Sarah Jacobs (Corporate Finance)                      020 7107 8000

Richard Redmayne (Corporate Broking)

Notes to Editors:

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 Europe. 

Egdon currently holds interests in 32 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.

www.egdon-resources.com 

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 25 years' experience.

 

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