2nd Sep 2014 07:17
LONDON (Alliance News) - Egdon Resources PLC, Union Jack Oil PLC, and Europa Oil & Gas Holdings PLC saw their shares rise Tuesday after they said that the Wressle-1 conventional exploration well they are drilling to the east of Scunthorpe had found hydrocarbons.
In a statement, well operator Egdon said it started drilling the well on July 18 and reached a total depth of 2,240 metres measured depth on August 23. It said elevated mud gas readings were observed over large parts of the interval from the top of the Penistone Flags reservoir target at 1,831.5 metres measured depth down to the total depth.
It added that the well is now being completed with a 4.5 inch liner, which will allow selective and sequential testing of intervals as part of an extended well test, for which it already has planning consent.
"These test operations, which will be designed to determine the flow rates, hydrocarbon type and hence commerciality of the Wressle-1 well, will be undertaken using a work-over rig and are expected to commence during October 2014," Egdon said.
Egdon has a 25.0% stake in the well, while Europa Oil has a 33.34% stake and Union Jack has a 8.33% stake. The rest is held by Celtique Energie Petroleum Ltd.
"We are very encouraged by the preliminary evaluation of Wressle-1 - our first exploration well in the East Midlands Basin - with interpretation of potential hydrocarbon pay of over 30 metres thickness (measured) in three discrete reservoir intervals," Egdon Managing Director Mark Abbott said in a statement.
"Our attention now moves to designing and delivering a testing programme for these intervals to determine the potential for a commercial discovery and we look forward to updating shareholders once these operations commence," he added.
Egdon Resources shares were up 6.5% at 24.50 pence early Tuesday, while Europa Oil & Gas was up 11.1% at 8.19 pence and Union Jack Oil was up 18.0% at 0.360 pence. That put all three among the biggest gainers on the AIM All-Share index.
By Steve McGrath; [email protected]; @stevemcgrath1
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Related Shares:
Europa Oil & GasEDR.LUnion Jack