Egdon Resources Says Westerdale-1 Finds Gas Pay

Egdon Resources says the BDF28 drilling rig has completed drilling and logging operations at Westerdale-1 on North Yorkshire license PEDL068 in which Egdon holds a 20% interest. The Westerdale-1 well reached a Total Depth of 1304.5 m within rocks of Carboniferous age on the February 17, 2006. During drilling gas shows were encountered within the Permian age Brotherton carbonate and also in Carboniferous sandstones. Logging operations have now been completed and evaluation indicates potential gas pay in these two intervals which will be confirmed by testing.

The top of the Brotherton carbonate was encountered deeper than expected at a measured depth of 905m due to a thickened high velocity Triassic section. The lower interpreted gas column is in sandstones of Carboniferous age which were penetrated at a measured depth of 1188m.

The Westerdale-1 well is currently being completed with 7" casing to allow the testing of both intervals of interest. Testing operations will be undertaken using a work-over rig and are planned for March to follow on from testing of the Kirkleatham-4 well. Planning conditions at Westerdale-1 dictate that testing operations are restricted to the period October 1st to March 31st. Further details will be released once the test results have been fully evaluated.

Testing of the Kirkleatham-4 well, where a c.19m gas column was encountered within an interval of high gas saturations and good porosity development in the Cadeby Formation, is planned to commence on February 27th with operations anticipated to take approximately 15 days. The test completion will enable the well to be suspended for future production. Details of the results will be released once all data from the test have been analysed. Planning is also ongoing for potential seismic acquisition over the Kirkleatham accumulation.

On conclusion of operations at Westerdale-1 the drilling rig will mobilize to the Portland-1 well site in Dorset where drilling operations are expected to commence at the beginning of March 2006. Portland-1 which will be operated by Egdon on behalf of its wholly owned subsidiary, Portland Gas Limited, will be a vertical well drilled to a total 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.

In Dorset license PL090 the initial phase of testing has been completed on the Waddock Cross-3 well with equipment now demobilized from the site whilst data from the test is analysed to enable the design and procurement of pump and process equipment for future testing operations.

Drilling operations are also continuing at the Avington-3 well on the Star Energy operated license PEDL070 in the Weald Basin.