Update on Wressle-1 Well Testing - Results of Penistone Flags Flow Test and Forward Programme

Egdon Resources plc (AIM:EDR) is pleased to provide a further update on the ongoing well test operations at the Wressle-1 oil and gas 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 first set of perforations in Penistone Flags reservoir (“the Penistone”), the last of three hydrocarbon bearing zones identified in the well.The Penistone test produced gas at restricted flowrates of up to 1.7 million cubic feet of gas per day (“mmcfd”) with associated oil of up to 12 barrels of oil per day (“bopd”) and no free water from a 9 metre perforated zone at the top of the formation. Gas flow rates were constrained by the equipment and flaring limits imposed by the environmental permit. The gas and oil are of good quality with the oil having a gravity of 35^o API. The downhole pressure data recorded during the testing will now be analysed to estimate the gas flow rates that could be achieved under production, unconstrained by the flare and permit restrictions.A further test will now be undertaken to evaluate the gas-oil and oil-water contacts in the Penistone by perforating the formation deeper in the section. Following this it is intended to isolate the Penistone and Wingfield Flags perforations to enable a longer term pumped production test of the Ashover Grit to be undertaken to further “clean-up” the formation and determine the potential pumped production rate for this formation. All of the data gathered from the test operations will be integrated into a full evaluation of the Wressle discovery to enable an updated resource assessment and to inform the options for field development. We will provide shareholders with updates as work on monetising Wressle progresses.Commenting on the test results and the planned forward programme at Wressle, Mark Abbott Managing Director of Egdon Resources said;“We are very encouraged by the early test results from the Wressle-oil and gas discovery. All three zones tested have produced hydrocarbons to surface, with a restrictedflowrate of 1.7 mmcfd from the Penistone Flags, free-flowing rates of up to 182 bopd and 0.46 mmcfd from the Wingfield Flags and 80 bopd from the Ashover Grit. We now look forward to the results of our work to identify the location of the expected oil leg in the Penistone and to seeing what oil rates can be achieved with pumping of the Ashover Grit. We will now be working hard to integrate these test results into our models of the Wressle discovery to enable us to update our resource assessment and to plan for the development of the field where we will look to maximise value from both the oil and gas. "