TIDM3LEG
RNS Number : 2193T
3Legs Resources plc
11 December 2012
For Immediate Release
11 December 2012
3Legs Resources plc
Operations on Baltic Basin concessions in northern Poland
3Legs Resources plc (the "Company"), an independent oil and gas
group focusing on the exploration and development of unconventional
oil and gas resources, announces the following operational
update.
Highlights
-- Substantially improved performance achieved on the further
testing of Lebien LE-2H horizontal well
-- Drilling of the Strzeszewo LE-1 vertical well, the Company's
fifth well in the Baltic Basin, completed; extensive suite of logs
has been run on the well, data now undergoing processing and
analysis
-- Preparations continuing for the Company's previously-announced 2013 drilling programme
Operational update
Further testing of Lebien LE-2H horizontal well
-- During further testing, the Lebien LE-2H horizontal well
flowed natural gas from the Ordovician horizon for a 21-day natural
flow test, without any artificial lift, flowing at an average rate
of 550 mscf/d through 31/2 inch tubing from 31 October to 21
November 2012, when testing was suspended.
-- Immediately prior to suspension of the test, the well was
flowing natural gas at a rate of 470 mscf/d. A total of 12 mmscf of
natural gas was produced over the test period.
-- The well continued to clean up throughout the test period; by
the end of the test, approximately 29.4% of the water used during
the hydraulic fracturing operation on the well in 2011 had been
recovered.
-- The results of this further testing represent a significant
improvement on the result achieved when the well was first tested
in 2011. On that occasion, the well flowed with the assistance of a
nitrogen lift at a rate of between 450 and 520 mscf/d over an 8-day
period, prior to being shut in.
-- The well is now in a planned shut in period to record
pressure build-up using surface and downhole pressure gauges; this
pressure build up data will further enhance understanding of the
longer term flow potential of the Ordovician interval.
-- The plan is to continue to gather additional data on well
performance, with a view to making a decision on any future
operations on the well in Q1 2013 following recovery of the
pressure gauges.
Strzeszewo LE-1 vertical well
-- Drilling of the Strzeszewo LE-1 vertical well has now been
completed; the well was drilled to 3060 metres true vertical depth
into the Middle Cambrian interval.
-- Some 220 metres of whole core have been recovered from the
well over the Lower Silurian, Ordovician, and Cambrian intervals,
for analysis.
-- An extensive suite of logs has also been run on the well, and
these are now undergoing processing and analysis.
-- Preliminary log analysis indicates that the well encountered
a thicker Ordovician section as compared with the Lebien LE-1 and
Warblino LE-1 vertical wells. The precise thickness will be
determined following final processing and analysis of the logs over
the coming weeks, but the preliminary data confirm the Company's
earlier modelling of the development of the Ordovician interval
across the northern portions of its western Baltic Basin
concessions.
-- Preliminary log analysis also indicates that the thickness of
the Upper Cambrian interval is similar to that encountered at the
Warblino LE-1 vertical well. Again, exact figures will be confirmed
once final log processing and analysis is completed over the next
few weeks. As the Lebien LE-1 well only targeted shallower zones,
Upper Cambrian data were not taken from this well.
-- The Strzeszewo LE-1 well has now been cased and cemented, and
the rig has been released. A diagnostic formation injection test
("DFIT") is currently being planned, with expected execution in
early 2013.
-- Options being considered for further testing of this well
include DFITs and/or hydraulic frac testing.
-- Further announcements will be made in due course.
Further wells in 2013
-- Preparations are continuing for the Company's
previously-announced drilling programme for 2013, involving the
drilling, coring and logging of two or more vertical wells on the
Company's high graded acreage on its western Baltic Basin
concessions.
-- As previously announced, these wells will be designed with
the option to drill and test horizontal sections at a later
stage.
-- The 2013 drilling programme is expected to result in a
significant further de-risking of the Company's western Baltic
Basin acreage.
Kamlesh Parmar, Chief Executive of 3Legs Resources,said:
"The substantially improved performance achieved on the further
testing of the Lebien LE-2H horizontal well is very encouraging.
The well has succeeded in flowing unassisted and at a sustained
rate for a three-week period, while continuing to clean up; and
early indications are that our target formation may have additional
reservoir potential. An average rate of 550 mmscf/d over a 21-day
period is a big step in the right direction, given that the lateral
section on the well is no more than 1,000 metres in length and
comprised 13 frac stages, whereas it will be quite possible to
drill future horizontal wells with significantly longer lateral
sections and more frac stages. We will continue to analyse the
results of the well test and the pressure data so as to consider
any additional steps which may potentially improve performance both
from this well and future wells.
We are also very pleased that our fifth well in the Baltic
Basin, the Strzeszewo LE-1 vertical well, has now been drilled,
cased and cemented. Preliminary results from the well indicate an
increasing thickness in the Ordovician section as one moves north
in our western Baltic Basin concessions. This further validates our
geological model for the basin as a whole, and confirms our
modelling of our high-graded area across the northern part of our
western Baltic Basin concessions. The well has yielded a wealth of
additional core and log data which will enable us, after analysis,
to determine the optimum programme for further evaluation of
individual target intervals. With the first DFIT being planned for
the New Year, we expect the remainder of the testing programme for
this well to take shape in early 2013."
For further information contact:
3Legs Resources plc Tel: +44 1624 811 611
Kamlesh Parmar, Chief Executive
Officer
Alexander Fraser, Chief
Financial Officer
Jefferies Hoare Govett Tel: +44 207 029 8000
Simon Hardy
Jamie Buckland
College Hill Tel: +44 207 457 2020
Matthew Tyler
Catherine Wickman
Notes to Editors
3Legs Resources was established in early 2007 to focus on the
exploration and development of unconventional oil and gas
resources. A first mover in Poland, 3Legs Resources holds interests
in six licences covering approximately 1,084,000 acres (gross) in
the onshore Baltic Basin in northern Poland, a region considered to
be one of the most promising shale basins in Europe. The Company
also holds onshore exploration licences near Krakow in southern
Poland and has licences in Baden-Württemberg in south-west Germany
which are currently undergoing renewal.
The technical information and opinions contained in this
announcement have been reviewed by John Blair (MSc in Geophysics,
University of Tulsa and BSc in Geology from Montana State
University), Exploration Manager of 3Legs Resources plc, who has
over 25 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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