Egdon Resources Begins UK Onshore Drilling Program

Egdon Resources reports that the BDF28 drilling rig is scheduled to mobilize to the Waddock Cross-3 well site in Dorset on November 14th with drilling operations expected to commence on or around November 16th. The rig is owned and operated by British Drilling and Freezing Limited.

Waddock Cross-3 will be the first of a four or five well operated drilling program in the onshore UK. Drilling will target an elevated part of the Waddock Cross oil accumulation identified by the recent 3D seismic survey. A 600 m horizontal section will be drilled and completed through the reservoir. The well will be 1525m in length and take an estimated 25 days to drill. Following drilling and completion operations the rig will be moved off site and the well will be put on an extended well test ('EWT') using a pump-jack ('nodding donkey'). In addition the Company holds an option with BDF to drill a further horizontal appraisal well at Waddock Cross at the end of the current program.

The second well in the drilling program, Kirkleatham-4, is due to be drilled immediately following the Waddock Cross-3 well during December 2005. The Kirkleatham prospect is located beneath and to the west of the town of Redcar in Cleveland. The structure was originally tested by two wells in the mid 1940s, with testing producing subcommercial gas-flows in both wells from Permian age Zechstein carbonates. Seismic data shows the potential to apply modern drilling and completion techniques up-dip of both wells. The Kirkleatham-4 exploration well will test for the presence of an effective gas reservoir in this up-dip area of the structure. Kirkleatham-4 will be drilled as a vertical well to a prognosed depth of 900 m and is anticipated to take 15 days to drill.

The third well in the program will be the Westerdale-1 exploration well in the North Yorkshire Moors. Westerdale-1 is designed to test an accumulation 50.5 m updip 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 MMcfgd from a 20.5 m gas column in fractured Zechstein carbonates. The PEDL068 group believes that better positioning, completion and management of a well within the prospect could produce a significant and sustainable commercial gas flow. 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.

The Portland-1 borehole, for which planning consent has now been received, will be drilled as the fourth well in the program to a depth of around 2500 m. Drilling, coring and testing operations are expected to take around 50 days. Data from the well will enable the determination of the thickness and suitability of the salt interval to create caverns at the proposed Portland Gas Storage Project.

Commenting on the forthcoming drilling activity, Egdon's Joint Managing Director, Mark Abbott, said, "This, our first multi-well drilling program, represents the culmination of many years of exploration work by the Company. The 'back-to-back' nature of the program has resulted in significant overall cost savings on materials, equipment and services. We look forward to an active and exciting period with the hope of continuing the Company's record of drillbit success".


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