Egdon Completes Keddington Acquisition from Roc
Egdon Resources Plc has completed the acquisition from Roc Oil (GB) Limited of its entire interest in UK Onshore Petroleum Exploration and Development License PEDL005 (Remainder), which incorporates the Keddington Oil Field.
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."
Operates 1 Offshore Rigs
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