Operations Update

RNS Number : 1701H

Silvermere Energy PLC

09 July 2012

 



9 July 2012

Silvermere Energy plc

("Silvermere" or the "Company")

Operations Update

Silvermere, the independent oil and gas company, focusing principally on exploration, appraisal and production opportunities in the US, is pleased to provide another update covering 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").

Notice was given by Dominion to the Texas state authorities of the intention to commence installation operations on 3 July 2012. On the same day, the lift-boat departed from Galveston. It arrived at Mustang Island on 4 July where it performed sonar sweeps around the jacket location. The sonar sweep is used to identify any obstructions or impediments that would hinder or obstruct the pile driving operation. Several pieces of old riser, railings and old pipeline parts were identified and removed by a crew of divers. 

Following this procedure, the lift-boat moved approximately 475 feet to the tie-in point to the existing 10-inch line. The line was located by the divers, a trench was jetted out to facilitate the installation of the sub sea tie in point and a surface buoy was placed to mark the location.

The lift-boat then headed back to Aransas Pass. It is expected to return to the platform location later today along with the barge transporting the jacket. Pile driving operations are expected to commence shortly thereafter. 

Load-out of the second barge containing the platform itself has been completed; it is anticipated that it will be towed to the area later in the week by a supply boat.

Further updates will be provided as the work progresses.

--ENDS--

For further information please contact:

Silvermere Energy plc Andy Morrison, Chief Executive	[phone]
Merchant Securities Limited (Nominated Adviser and Broker) Lindsay Mair/Virginia Bull/Catherine Miles	+ 44(0)20 7628 2200
Rivington Street Corporate Finance Limited Jon Levinson	[phone]
Bishopsgate Communications Nick Rome/ Anna Michniewicz/ Ivana Petkova	[phone]

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-1Well 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.

 

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