Wressle Update -Artificial Lift
Egdon Resources plc (AIM:EDR), the UK Energy Company, announces that operations to install artificial lift on the Wressle-1 well (in which Egdon has a 30% interest) have commenced.
The operations began with a slickline programme where downhole pressure and temperature gradients were acquired. Slickline operations have now been completed and the ongoing work programme includes recompleting the well for installation of a downhole jet pump and installing the associated surface equipment. It is expected that these operations will last around three weeks and that production from the Wressle-1 well is expected to be reinstated in late September.
The downhole data obtained from these activities is being incorporated into the ongoing work by ERC Equipoise Ltd and the impact of the artificial lift will be included in the independent Competent Person’s Report which will be announced once this additional work is completed.
Commenting Mark Abbott, Managing Director of Egdon, said:
“The installation of a jet pump system has been programmed for some time and was selected following earlier evaluation of all artificial lift options along with our joint venture partners. Its installation will ensure production from the Wressle-1 well continues to be optimised following the expected onset of water production. I am pleased to confirm that operations to install the system have begun and I will update shareholders in due course.”
Satisfaction of NSTA Condition
Exercise of farmout option PL081 and agreement relating to PEDL347
Egdon Resources plc (AIM:EDR) the UK Energy Company, provides an update on the Wressle well and expected timing of publication of the Competent Person’s Report currently being undertaken by ERC Equipoise Ltd (“ERCE”).
• Cumulative production from the Wressle-1 well totalled 492,876 barrels of oil through to the end of July 2023
• The well continues to produce under natural flow
• Limited volumes of water have been observed, with water cut averaging 3.72% of total field production during July 2023
• The start of water production is significantly later than originally anticipated, providing further evidence that the expected recoverable volumes from the Ashover Grit will be at the higher end of the estimates detailed in the independent Competent Person’s Report (“CPR”) prepared by ERCE and announced on 26 September 2016. The 2016 CPR forecast gross volumes from the Ashover Grit of 2P 0.54 MMstb and 3P 1.12 MMstb.
• The advent of water is now being incorporated into ERCE’s reservoir modelling and resource assessment work streams, which will be reflected in the new Competent Person’s Report
• A more detailed update will be provided when the Competent Person’s Report has been completed
Change to Accounting Period
Egdon Resources plc (AIM:EDR) the UK Energy Company, advises that it has extended its current accounting period, which would have ended on 31 July 2023, by five months to end on 31 December 2023. This follows shareholder approval of the terms of a recommended all cash acquisition by Petrichor Partners LP (“Petrichor”) for the entire issued and to be issued ordinary share capital of Egdon and will align Egdon with the accounting period of Petrichor and also minimise ongoing audit costs.
As a result of this extended period, Egdon will publish unaudited interim results for the six-months to 31 July 2023 by 31 October 2023.
Egdon would plan to file its audited accounts for the extended period by 30 June 2024. However, should Egdon remain a public company beyond 31 December 2023 then it will publish its audited accounts for the extended period by 30 March 2024.