Egdon Resources PLC Wressle Development Update (9007Y)
May 18 2021 - 01:00AM
UK Regulatory
TIDMEDR
RNS Number : 9007Y
Egdon Resources PLC
18 May 2021
18 May 2021
EGDON RESOURCES PLC
("Egdon" or "the Company")
Wressle Development Update
Egdon Resources plc (AIM: EDR, "Egdon") is pleased to advise
that it has received all necessary consents for the commencement of
the proppant squeeze operation at the Wressle Oil Field Development
("Wressle") located in North Lincolnshire Licences PEDL180 and
PEDL182 where the Company holds a 30% operated interest.
The proppant squeeze operation is expected to optimise oil
production from the Ashover Grit reservoir, one of the three
productive reservoirs tested, to a constrained gross rate of 500
barrels of oil per day (150 bopd net to Egdon).
The operation is expected to be completed and optimum oil
production achieved during June 2021.
The Wressle-1 well has been on 24 hour test production since
late January with produced oil transported by road tanker to the
Phillips 66 Humber refinery and sold under Egdon's existing oil
sales contract.
Production rates have continued to increase and have exceeded
our expectations with high quality free flowing oil being produced
and no water present. All data confirms the independent prediction
that over 500 bopd will be achievable following the proppant
squeeze. The well will continue operating on test production until
the proppant squeeze operation is undertaken.
Commenting on the news Mark Abbott, Managing Director of Egdon
Resources said;
"We are delighted to have received all the required regulatory
consents for the proppant squeeze operation at Wressle. When
successfully completed, this will realise the full potential from
the Ashover Grit reservoir and is expected to increase Egdon's net
production to 150 bopd at a time of increasingly strong oil prices
leading to a step change in our cash flow."
For further information please contact:
Egdon Resources plc
Mark Abbott, Martin Durham 01256 702 292
Buchanan
Ben Romney, Chris Judd 020 7466 5000
Nominated Adviser & Joint Broker - WH Ireland Limited
Chris Hardie, Lydia Zychowska 020 7220 1666
Joint Broker - VSA Capital Limited
Andrew Monk (Corporate Broking) 020 3005 5000
Andrew Raca (Corporate Finance)
Notes to Editors:
Egdon Resources plc (LSE: EDR) is an established UK-based
exploration and production company focused on onshore exploration
and production in the hydrocarbon-producing basins of the UK.
Egdon holds interests in 41 licences in the UK and has an active
programme of exploration, appraisal and development within its
portfolio of oil and gas assets. Egdon is an approved operator in
the UK. Egdon was formed in 1997 and listed on AIM in December
2004.
Wressle
The Wressle-1 well was drilled in 2014 and tested in 2015. The
Wressle-1 well has flowed oil and gas from three separate
reservoirs, the Ashover Grit, the Wingfield Flags and the Penistone
Flags. This totalled 710 barrels of oil equivalent per day from all
zones. In September 2016 a Competent Person's Report made
independent estimates of Reserves and Contingent and Prospective
oil and gas Resources for the Wressle discovery of 2.15 million
stock tank barrels classified as discovered (2P+2C).
Qualified Person Review
In accordance with the AIM Rules - Note for Mining and Oil and
Gas Companies, this release has been reviewed by Mark Abbott,
Managing Director of Egdon, who is a geoscientist with over 30
years' experience and is a member of the Petroleum Exploration
Society of Great Britain and a Fellow of the Geological Society. Mr
Abbott has consented to the inclusion of the technical information
in this release in the form and context in which it appears.
Evaluation of hydrocarbon volumes 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).
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). Upon the
publication of this announcement via Regulatory Information Service
("RIS"), this inside information is now considered to be in the
public domain.
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