(AIM: UJO)
Wressle Oil and Gas Discovery: Update
Union Jack holds an 8.33% interest in PEDL180.
Highlights
· Plan to progress to an agreed Field Development Plan with a view for readiness to submit to the
· Focus on delivering the required consents to enable commercial production from the Ashover Grit in H2 2016; and
· Reservoir engineering analysis of the well test pressure and production data indicates that initial production rates from the Ashover Grit in excess of 500 barrels of oil per day could be anticipated by successfully countering skin effects.
Egdon's RNS contained the following information:
As announced previously, it had been the PEDL180 joint venture (JV) partners' intention to undertake further well test operations on both the Ashover Grit and Penistone Flags intervals. However, since completion of the Extended Well Test ("EWT") operations in early
As previously reported, flow rates from the Ashover Grit measured in the initial testing phase (80 barrels of oil per day ("bopd")) were affected by localised near well bore formation damage (high "Skin" factor) and so are not representative of the flow rates that could be attained from this interval. Reservoir engineering analyses of the well test pressure and production data indicates that initial production rates in excess of 500bopd could be anticipated if the effects of the "Skin" can be successfully countered. It is therefore the JV's intention that plans for the development of Wressle will include a comprehensive suite of operations and procedures, designed to mitigate the impact of the "Skin" on production rates, which form part of the initial workover programme for the well to prepare it for long-term production.
Egdon and the PEDL180 partners now plan to progress to an agreed FDP for Wressle with a view to it being ready in Q1 2016 for submission to the
Production from Wressle is currently expected to be phased, with initial development focused on the Ashover Grit oil reservoir.
Commenting on the update,
"We are delighted that the petroleum engineering and geotechnical work conducted to date has given the PEDL180 joint venture sufficient confidence to move directly towards FDP preparation for Wressle, without further costly and time-consuming testing. We are now focussed on delivering the required consents to enable us to commence commercial oil production from the Ashover Grit in H2 2016."
"Union Jack's first venture with the drill bit has created significant value resulting in a discovery where field development leading to commercial production is anticipated during H2 2016.
The Board looks forward to updating shareholders in due course"
For further information please contact the following:
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+44 (0) 77871 60682 |
Shore Capital Nominated Adviser Bidhi Bhoma Corporate Broking |
+44 (0) 20 7408 4090 |
SP Angel Joint Broker Richard Hail
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+44 (0) 20 3470 0470 |
Public Relations
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+44 (0) 7768 537 739 +44 (0) 7799 003 220 |
Notes to Editors:
The Wressle Oil Discovery -The Wressle Prospect was defined on proprietary 3D seismic data, which was acquired by Egdon in
The Wressle-1 well reached a total depth (TD) of 2240 metres measured depth (MD) (1814 metres true vertical depth below OS datum (TVDSS)) on
Egdon Resources
Celtique Energie Petroleum Limited 33.33%
The well was logged using measurement whilst drilling (MWD) logging tools run on the drill string. Petrophysical evaluation of the log data indicated the presence of potential hydrocarbon pay in three main intervals;
· Penistone Flags - up to 19.8 metres measured thickness (15.9 metres vertical thickness)
· Wingfield Flags - up to 5.64 metres measured thickness (5.1 metres vertical thickness)
· Ashover Grit - up to 6.1 metres measured thickness (5.8 metres vertical thickness)
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During the current EWT the Zone 3A perforations were produced for a total of 254hrs over a 13 day period from the 5th to
Operations at the Wressle site will not involve the process of high volume hydraulic fracturing ('fracking') for shale gas.
This information is provided by RNS