Development and Appraisal Projects - growing production and revenues

Egdon has a number of near term development and appraisal projects capable of adding further production and revenues.

UK
Eakring-Dukes Wood oil field rejuvenation (PEDL118 – 75% operated)
The Eakring-Dukes Wood abandoned oil field, located in Nottinghamshire, was discovered in 1939 and produced from a number of shallow sandstone reservoirs of Carboniferous age from 1940 until 1966. Total production at abandonment was 6.5 million barrels. Egdon have identified potential to rejuvenate the field. The first step in a planned initial four well programme will be the drilling of the Dukes Wood-1 well which will be drilled directionally to test a number of reservoir intervals in the Dukes Wood anticline. Egdon estimate the initial development will access net Egdon most-likely reserves of 0.56 MMstb.

Waddock Cross oil field (PL090 – 45% operated)
The Waddock Cross oil field, located in Dorset, has two wells which are completed for production from the Jurassic Bridport Sands Formation at a depth of 660 metres; Waddock Cross-2 and 3. Planning consent is in place for a six month extended well test designed to confirm the development plans for the accumulation. It is intended to commence this testing in early 2010. Net Egdon most-likely reserves are 0.7 MMstb.

Kirkleatham Gas Field (PEDL068 – 20% operated)
The Kirkleatham gas field, near Redcar, is a stratigraphically trapped gas accumulation in a Permian age limestone reservoir, discovered in 2006 by the Kirkleatham-4 exploration well. Gas was discovered at a depth of around 800 metres and tested at rates of up to 5 million cubic feet per day. All commercial agreements with the gas user Sembcorp Utilities and planning consent are in place to produce and sell the gas to the nearby Wilton works for use in power generation. The joint venture are now working on a revised target for first gas of winter 2010. Net Egdon most likely contingent resources are estimated at 0.94 Bscf. The option exists to convert the Kirkleatham field into a gas storage facility once the gas reserves are depleted. A further 20% interest is to be acquired via the EnCore acquisition.

Westerdale (PEDL068 – 20% operated)
The Westerdale/Ralph Cross gas accumulation, in North Yorkshire, has been tested by two wells; Ralph Cross-1 (1996) and Westerdale-1 (2006), which demonstrated the presence of gas in a fractured Permian limestone reservoir. Egdon’s recently completed evaluation of the structure has defined a significant potential gas volume which is capable of being commercially developed via off-site electricity generation. A planning application will be developed for a further appraisal well on the structure in 2010. Net Egdon best estimate prospective resources are 4.4 Bscf. A further 20% interest is to be acquired via the EnCore acquisition.

Nooks Farm Gas field (PEDL141 – 46% operated)
The Nooks Farm gas accumulation, located in Staffordshire, was discovered by Shell in 1982, with the Nooks Farm-1a well encountering gas bearing sandstones of Carboniferous age at shallow depth, which tested at a maximum flow rate of over 1 million cubic feet of gas per day. A planning application is nearing submission for development via re-entry of the original well and on-site electricity generation with a well planned for 2010. Egdon are carried through this work programme. Net Egdon Contingent Resources are 1.15 Bscf.

Broughton (PEDL182 – 50% operated)
The Broughton-1 oil discovery, in Lincolnshire, was drilled and tested by BP in 1984. The well flowed at rates of up to 40 bopd from a thin Carboniferous age sandstone interval before being abandoned. Egdon have identified potential up-dip of the original well and will acquire 2D seismic data over the discovery prior to committing to further drilling. Net Egdon best estimate resources of 0.82 MMstb.

France
Grenade (St Laurent – 33.334% operated)
The Grenade heavy oil accumulation, located in SW France, was discovered in 1975 and appraised by the Grenade-3 well in early 2008. The well failed to find hydrocarbons and technical work has been ongoing to determine the extent of the heavy oil accumulation at Grenade and forward appraisal programme. The Grenade-3 well was suspended and a decision on sidetracking or abandonment of the well will be made in the coming years. The best estimate gross oil in place is now estimated at 86 MMstb which equates to net  Egdon contingent resources of 2.6 MMstb.

Mimizan Nord (Pontenx – 40% operated)
The Mimizan Nord abandoned heavy oil field, on the Atlantic coast of SW France, may have potential for rejuvenation of production and this will be investigated in 2010.