The consideration for the acquisition was £250,000 in cash.
HTML for Picture(s): 1 pic template 2 pic template HTML for Featured Article Picture: template * Article Date: Country: AfghanistanAlbaniaAlgeriaAmerican SamoaAndorraAngolaAnguillaAntarcticaAntigua and BarbudaArgentinaArmeniaArubaAustraliaAustriaAzerbaijanBahamasBahrainBangladeshBarbadosBelarusBelgiumBelizeBeninThe Keddington Oil Field is located to the east of the town of Louth in the county of Lincolnshire. Oil production at Keddington is from a sandstone reservoir of Westphalian (Carboniferous) age at a depth of around 2180 meters. The field has two production wells; Keddington-1z, which is a pumped well which was producing around 20 to 30 barrels of oil per day ("bopd") with 50-60% water cut, and Keddington-2y which was free-flowing oil at 10?15 bopd along with up to 110,000 cubic feet of gas per day.
The Keddington Oil Field has produced a total of 173,000 barrels of oil to date. Production to date is believed to represent only a small percentage of the mapped oil in place, highlighting the potential for further production at Keddington.
The Keddington Oil Field is currently not in production. The Keddington-1z well has been subject to tubing and pump problems in recent years and has been shut-in since June 2006 waiting on a work-over rig. The Keddington-2y well has not been put back on production since a pressure survey in March 2006.
Egdon is in the process of mobilizing a work-over rig and equipment to site to re-complete the Keddington-1z well with new tubing, rods and a deeper set pump to optimize pumped production from this well. At the same time Egdon will restore free-flowing production from the Keddington-2y well. Egdon is also investigating the potential to utilize the produced gas in a gas engine already installed at Keddington to generate electricity for use on site, thus reducing operating costs. Prior to recommencing full-field production, Egdon will also undertake some improvements to the site access and is renewing all environmental consents.
Commenting on the transaction, Mark Abbott, Joint Managing Director of Egdon said: "We are delighted to have completed the acquisition of the Keddington Oil Field. The next month will see a work-over of the Keddington-1z well which will add near-term production and cash-flow in one of Egdon's core areas of the onshore UK."
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