10 January 2006 - Operations Update
Egdon Resources Plc (“Egdon” or “the Company”) is pleased to provide an update on drilling and testing operations on its UK operated licences.
The BDF28 drilling rig has completed drilling and logging operations at Kirkleatham-4 on licence PEDL068. The Kirkleatham-4 well reached a TD of 936m within rocks of Carboniferous age on the 7th January 2006. During drilling gas shows were encountered within the target Permian age Zechstein carbonates. Logging operations have now been completed and confirmed the presence of a c. 19m gas column within the Cadeby Formation. The top of the Cadeby Formation was penetrated at 804.3m where a drilling break and high gas readings were observed. Evaluation of wireline log data indicates high gas saturations and good porosity development within the gas bearing interval. The Kirkleatham-4 well will be completed with 7” casing and the BDF28 rig released. Testing operations will be undertaken using a work-over rig. Further activity at Kirkleatham will be assessed once test results have been evaluated.
On completion of operations at Kirkleatham-4 the drilling rig will mobilise to the Westerdale-1 well site in North Yorkshire where drilling operations are expected to commence during the week of 16th January 2006. Westerdale-1 is designed to test an accumulation 50.5 m up-dip and 3.7 km to the north of the Ralph Cross-1 gas discovery made by Home Oil Limited in 1966. Ralph Cross-1 tested gas at flow rates of up to 6 million cubic feet of gas per day from a 20.5 m gas column in fractured Zechstein carbonates. Additional reservoir objectives are present in the Westerdale-1 well both within the Zechstein and in the underlying Carboniferous sequences. Westerdale-1 will be directionally drilled to a total depth of around 1250 m and
will take around 21 days to drill.
On completion of operations at Westerdale-1 the rig will move to Dorset to drill the Portland-1 well which is designed to test the thickness and suitability of a salt sequence for the creation of caverns for gas storage. Site construction has commenced at the Portland-1 well site.
The Company can also report that at Waddock Cross-3, testing operations are ongoing in the horizontal section drilled in the Cycle 3 of the Bridport Sandstone. Initial results indicate pump constrained flow rates of 270 to 400 barrels of fluid per day with an average 12% oil cut. This equates to 32 to 48 barrels of oil per day. The produced oil has not experienced the emulsion problems encountered with the Waddock Cross-2 well test. Downhole pressure gauges will be recovered during the next week and the data analysed to mdetermine options for the future testing and development of the Waddock Cross accumulation.
