Egdon Resources Says Kirkleatham-4 Confirmed as Gas Discovery

Westerdale-1 Well
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Kirkleatham Prospect - PEDL 068
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Egdon Resources says that testing operations have confirmed the presence of gas at the Kirkleatham- 4 well.

At Kirkleatham-4 in Cleveland Basin license PEDL068, testing of 6m perforated interval at the top of the Cadeby Formation commenced on 6 March with an initial flow rate of 2.8 million standard cubic feet of gas per day ("mmscfgd"). The rate was increased in steps during the five day test to a final rate of 5 mmscfgd at a flowing well head pressure of approximately 1000 pounds per square inch gauge pressure ("psig") through a 18/64" choke. During the test, flaring was restricted to the period 07.00 to 19.00 hrs. The well was shut-in for a long term build-up on 10 March. Initial analysis indicates that the gas quality is good with less than 3 mol% inert content and 93 mol% Methane.

The well has been completed for potential future production and will be suspended once the down-hole pressure gauges are recovered from the well later this week. The future program for Kirkleatham will be decided following recovery of the down-hole gauges and full analysis of the test results. Planning is progressing for potential seismic acquisition over the Kirkleatham accumulation.

Test equipment and personnel are currently being moved from Kirkleatham-4 to the Westerdale-1 well-site, also in PEDL068, to test indications of gas encountered in two intervals during recent drilling operations.

Drilling operations at the Portland-1 well commenced on 6 March. The BDF28 rig was drilling ahead at a depth of 810 meters at 15.00 hrs on 14 March. Portland-1 is being operated by Egdon on behalf of its wholly owned subsidiary, Portland Gas Limited. 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. Portland-1 has a prognosed total depth of around 2500 m. Drilling, coring and testing operations are expected to take around 50 days.

In Weald Basin license PEDL070, operated by Star Energy Plc, the Avington-3 appraisal well has reached TD and the well has been logged and a liner set. A well test program will now be undertaken using the operator's work-over rig.


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