Completion of drilling operations at the Kiln Lane-1 Exploration Well on PEDL181

Egdon Resources plc (LSE: EDR) notes that Europa Oil and Gas plc (“Europa”) has today announced the completion of drilling operations at the Kiln Lane-1 Exploration Well on PEDL181 where Egdon holds a 25.0 per cent interest.

Europa’s RNS contained the following information:

“Europa Oil & Gas (Holdings) plc, the AIM quoted oil and gas company with a combination of producing and exploration assets in Europe, announces the completion of drilling operations at the Kiln Lane-1 conventional exploration well (‘Kiln Lane’ or ‘the Well’) on Licence PEDL 181 in Northeast Lincolnshire.   The Well spudded on 23 February 2015 and reached a total depth (‘TD’) of 2,291 metres on 19 March.  Sandstones in the Westphalian and Namurian intervals were penetrated in line with the pre-drill geological model and significant oil and gas shows were observed during drilling operations.  However, wireline logging and subsequent petrophysical analysis indicates that the sandstones encountered are water wet.  The Well will therefore be plugged and abandoned and the site restored to agricultural use.

Europa is operator of and has a 50% working interest in PEDL 181, which covers an area of over 540 km2 in the East Midlands Petroleum Province.  Egdon Resources and Celtique Energie Petroleum Ltd each have a 25% interest in the Licence.  Europa and its partners will conduct a detailed post-drill technical review of all relevant well and seismic data to determine the way forward with this large exploration licence.

Europa’s CEO, Hugh Mackay said, “While we are disappointed with the outcome, Kiln Lane was drilled on schedule, on budget and safely. This is testament to the performance of both our own technical team and the engineering crew on the ground.  Kiln Lane was the first well to be drilled on this large licence where multiple leads have been identified. The presence of hydrocarbon shows is encouraging and the quality of data recovered will enable clear decision making going forwards. Over the coming weeks and months more technical work will be conducted on all the data and geological samples recovered from the well as we refine our hydrocarbon system model and plan our next steps for the Licence.”