REG - Egdon Resources PLC - Wressle – Downhole Pressure Data Analysis

Egdon ResourcesAnnouncement

19/01/2022 07:05

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RNS Number : 8743Y  Egdon Resources PLC  19 January 2022

 

 

19 January 2022

EGDON RESOURCES PLC

("Egdon" or "the Company")

Wressle - Results of Downhole Pressure Data Analysis

Egdon Resources plc (AIM:EDR) a UK-based exploration and production company
primarily focused on the hydrocarbon-producing basins of onshore UK, is
pleased to provide a summary of the results of the analysis of the downhole
hole pressure data acquired in the Wressle-1 well during December 2021.  The
interpretation was carried out by ERCE, an independent energy consultancy, on
behalf of the Wressle joint venture partners.

Egdon holds a 30% interest and is operator of the field.

Highlights

·   The results demonstrate the significant potential of the Wressle-1 well
and the production rates that could be achieved once the surface facilities
are optimised and a gas utilisation scheme is in place

·   Based on the current reservoir pressure and a flowing tubing head
pressure of 400 pounds per square inch gauge ("psig"), ERCE estimates that a
rate of 1,216 barrels of oil per day ("bopd") would be achievable, whilst
maintaining a flowing bottom hole pressure above the oil saturation pressure
("bubble point")

·    At 300 psig flowing tubing head pressure, ERCE estimates the well
could flow at a rate of 1,543 bopd whilst at the oil bubble point

·   ERCE estimates a reservoir permeability of 80 millidarcies, and the
analysis also confirmed the effectiveness of the proppant squeeze in reducing
the skin factor from 107 to 0.2.  (The skin factor is an estimate of the
impairment to flow within the reservoir caused during drilling, completion or
the original testing operations.)

 

Mark Abbott, Managing Director of Egdon, commented:

"The conclusions of this work clearly demonstrate the significant potential of
the Wressle-1 well and the possible production rates that can be achieved from
the Ashover Grit reservoir interval.

We continue to work to realise the full commercial potential of the Wressle
field. This will be achieved through optimising the production facilities,
progressing options for gas monetisation and advancing the development plan
for production from the Wingfield Flags and Penistone Flags reservoirs. In the
meantime, the asset continues to generate material cash flow that has
transformed the Company's financial outlook.

I look forward to making further announcements in respect of progress in due
course."

 

For further information please contact:

Egdon Resources plc

Mark Abbott, Martin Durham
                    01256 702 292

 

Buchanan

Ben Romney, Jon Krinks
                      020 7466 5000

 

Nominated Adviser & Joint Broker - WH Ireland
Limited

Chris Hardie, Megan
Liddell
020 7220 1666

 

Joint Broker & Financial Advisors - VSA Capital Limited

Andrew Monk (Corporate
Broking)                                             020
3005 5000

Andrew Raca (Corporate Finance)

 

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.

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.

Notes to Editors:

Egdon Resources plc (LSE: EDR) is an established exploration and production
company focused on the hydrocarbon-producing basins of the onshore UK.

Egdon holds interests in 39 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.

 

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