Update on Wressle-1 Well Testing – Results of Ashover Grit Flow Test

9 February 2015

Egdon Resources plc (AIM:EDR) is pleased to provide an update on the ongoing well test operations at the Wressle-1 oil discovery in licence PEDL180 located to the East of Scunthorpe, where Egdon operates with a 25% interest.

Test operations have now been completed on the Ashover Grit reservoir, the first of three potentially hydrocarbon bearing zones identified in the well.  An interval of 9.5 metres was perforated (2006.1 to 2015.6 metres measured depth) and following an initial “clean-up” flow, free flowing oil production rates equivalent to 80 barrels of oil per day (“bopd”) were achieved during a 16 hour main flow period along with 47 thousand cubic feet of gas per day.  No appreciable volumes of water were observed.  The oil is of good quality with a gravity of 39-40o API.

Down-hole pressure data, recorded during the main flow and subsequent shut-in build-up period, will now be analysed to evaluate the nature of the reservoir permeability to determine the increased production rates that could be achieved during pumped production.

The Ashover Grit interval will now be isolated with a bridge-plug and test operations will continue on two further discrete zones, the Wingfield Flags and Penistone Flags, where hydrocarbons are indicated from log data and gas chromatograph analysis.  We will provide further updates as and when results are known from these intervals.

Given the encouraging free-flow test results from the Ashover Grit it is intended to undertake a longer term pumped production test subsequent to the current test programme being completed.

Commenting on the Ashover Grit flow test results, Mark Abbott Managing Director of Egdon Resources said;

“These are very encouraging results, with free-flowing rates of 80 bopd of good quality oil from the first zone tested.  We now look forward to the results from two further intervals which could add further substantial production potential to that demonstrated from the Ashover Grit.

During this period of reduced oil prices, the low development and operating costs of onshore UK production means that discoveries such as Wressle remain commercially attractive and we look forward to progressing plans for a longer term pumped production test on the Ashover Grit and any of the other zones which show potential.”