TIDM3LEG
RNS Number : 8951O
3Legs Resources plc
26 September 2011
For Immediate Release
26 September 2011
3Legs Resources plc
Operations on Lebien LE-2H horizontal well
Operations on Warblino LE-1H horizontal well
3Legs Resources plc (the "Company"), a company focussed on the
exploration and development of unconventional oil and gas resources
with a particular focus on shale gas in Europe,announces the
following operational update.
Key points
-- Lebien LE-2H
o The initial testing phase is now concluded
o The well achieved its objectives of a sustained gas production
rate and data gathering to advance the Company's understanding of
the reservoir
o Natural gas flowed with the aid of nitrogen lift at an initial
unstabilised rate of 2,200 mscf/d on 8 September, declining to 500
mscf/d on 13 September.
o A tubing string was added on 17 September and the well
continued to flow with the aid of a nitrogen lift to recover frac
water, with natural gas recommencing flow at an initial rate of
approximately 380 mscf/d
o The well has continued to flow with the aid of the nitrogen
lift at a net natural gas rate of approximately 450-520 mscf/d up
to 25 September
o The well is now in the process of being shut in pending
further analysis
o Depending on the results of further analysis the well may be
further flow tested
-- Warblino LE-1H
o Vertical pilot well drilled to TD of 3,222 metres with
extensive coring and logging programmes
o In addition to the intervals completed at Lebien LE-1 and
Lebien LE-2H, this well encountered a separate deeper interval
o The well was sidetracked to drill a horizontal borehole in
this deeper interval
o After drilling a 1,246 metre horizontal lateral of shale with
strong gas shows, and just prior to reaching planned total depth,
the well encountered hole stability issues
o A sidetrack was then initiated to redrill the same section
o The new lateral was drilled to 3,844 metres (measured depth)
with a 500 metre horizontal section. This was a shorter horizontal
section than originally planned so as to reduce the risk of
encountering hole problems
o Well will shortly be made ready for well stimulation programme
and test in due course
Lebien LE-2H horizontal well
Following its announcement on 8 September 2011 regarding the
commencement of testing of the Lebien LE-2H horizontal well, the
initial testing phase on this well is now concluded. The hydraulic
fracture programme was successfully executed as planned. The well
started to flow natural gas at an initial unstabilised rate of
2,200 mscf/d on 8 September with the aid of a coil tubing unit and
nitrogen lift. On 17 September the well was completed with a tubing
string to allow testing for a longer duration. The well continued
to produce frac water back with the aid of a nitrogen lift and at
the same time commenced flowing natural gas at an initial rate of
approximately 380 mscf/d.
Since then the well has continued to dewater with the aid of the
nitrogen lift and the natural gas flow rate has been between 450
and 520 mscf/d as at 25 September. As at 25 September, 15% of the
frac fluid had been recovered. The well is now in the process of
being shut in pending further analysis, with the option to conduct
additional production testing at a later date using lower cost
solutions.
The well had two key objectives: firstly, to achieve a sustained
gas production rate, and secondly to gather critical data for
drilling and stimulation design for future wells. The Company is
very pleased that the well has achieved both of these
objectives.
The entire frac and test programme in this well was accomplished
without HSE incidents.
Warblino LE-1H horizontal well
Drilling is progressing on the Warblino LE-1H horizontal well,
which is at a location approximately 25 km to the west of the
Company's Lebien LE-2H well.
The Warblino LE-1H well was drilled initially as a vertical
pilot well to a total vertical depth of approximately 3,222 metres.
Some 134 metres of wireline core and a further 50 sidewall cores
were taken over 75 metres of additional interval. An extensive set
of logs was also run.
Preliminary analysis of the logs and extensive other data
indicates that a prospective deeper interval has been
identified.
Following drilling of the vertical wellbore, the well was
plugged back as planned and a horizontal section of approximately
1,246 metres was drilled in this deeper interval, staying within
the upper 5 metres of the formation for virtually the entire length
of the lateral. Gas shows were encountered throughout this
interval. Just prior to reaching the planned lateral length, the
well encountered hole stability issues, and it was decided to
redrill this lateral. The new lateral was drilled to 3,844 metres
measured depth with a 500 metre horizontal section. This was a
shorter horizontal section than planned so as to reduce the risk of
encountering hole further stability issues.
The well will shortly be made ready for an extensive well
stimulation programme, following which the well will be put on
test, scheduled for later this year.
Peter Clutterbuck, Chief Executive of 3Legs Resources, said:
"We are delighted to have successfully executed the multi-stage
hydraulic fracture stimulation along the lateral section of the
Lebien LE-2H well and achieved encouraging natural gas flow-rates.
Our interpretation of logs conducted after the frac operation
indicates that the frac propagated to a portion of the reservoir in
each of the 13 stages, but not to all of the reservoir. We will be
reviewing frac designs with the intention of improving frac
performance on future wells. This well has provided us with
invaluable information do to this and to improve reservoir
deliverability.
Our objectives with this well were to achieve a sustained gas
production rate, and to gather data to further understand the
reservoir. We are very pleased to have achieved both these
objectives on our first attempt.
We are encouraged by the characteristics of the new shale
interval we have encountered in the Warblino LE-1H horizontal well
and believe this represents a promising additional target in the
basin. We look forward to the test results of this well programme,
scheduled for later this year. This deeper horizon, while always a
key objective of the programme, was not included in the Competent
Persons Report prior to IPO as it had not been penetrated in either
of our two wells drilled prior to that date."
For further information contact:
3Legs Resources plc Tel: +44 1624 811 611
Peter Clutterbuck, Chief
Executive Officer
Alexander Fraser, Chief
Financial Officer
Jefferies International
Limited Tel: +44 207 029 8000
Chris Snoxall
Alex Grant
College Hill Tel: +44 207 457 2020
Nick Elwes
Catherine Maitland
Notes to Editors
3Legs Resources was established in early 2007 to focus on the
exploration and development of unconventional oil and gas
resources, with a particular focus on shale gas in Europe. A first
mover in Poland, 3Legs Resources has acquired six licences covering
approximately 1,084,000 acres (gross) in the onshore Baltic Basin,
a region considered to be one of the most promising shale basins in
Europe. The Company's primary targets in the Baltic Basin are the
organic-rich black shales of the Lower Palaeozoic section. In
addition to these assets, the Company holds onshore exploration
licences over acreage near Krakow in southern Poland and in
Baden-Wurttemberg in south-west Germany.
The technical information and opinions contained in this
announcement have been reviewed by Peter Clutterbuck (MA Honours in
Engineering, Cambridge University and former Member of the Board of
the Society of Petroleum Engineers in London), Chief Executive
Officer of 3Legs Resources plc, who has over 35 years of experience
in the oil exploration and production industry. He has consented to
the inclusion herein of such technical information and
opinions.
www.3legsresources.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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