3Legs Resources plc Operational Update (5347D)

TIDM3LEG

RNS Number : 5347D

3Legs Resources plc

30 April 2013

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.

Key points

Lebien LE-2H horizontal well

-- Preparations are under way for a third phase of testing of the Lebien LE-2H horizontal well, drilled in the lower Ordovician horizon, and testing equipment has now been mobilised to the location.

-- Testing is expected to commence in the second half of May and it is intended that the well will be flow-tested for 30-60 days.

Strzeszewo LE-1 vertical well

-- Preparations are continuing for a first single-stage hydraulic fracture stimulation, in the Cambrian Alum shale.

   --      The frac operation is scheduled to commence within the next four weeks. 
   --      This is the first of two planned single-stage hydraulic fracture stimulations in this well

2013 drilling programme

   --      Preparations for the Company's 2013 drilling programme are continuing.

Operational update

Lebien LE-2H horizontal well

Preparations are under way for a third phase of testing of the Lebien LE-2H horizontal well, drilled in the lower Ordovician horizon, and testing equipment has now been mobilised to the location. When last tested in December 2012, this well flowed at an average rate of 550 mscf/d for a 21 day period, without any artificial lift.

Operations will involve swapping out the existing 3 1/2 inch tubing string used for the test last year and replacing it with a 2 3/8 inch string, considered more suitable for a testing operation of this nature. The 3 1/2 inch string used last year had originally been intended for use in connection with a jet pump, which proved unnecessary when the well showed it was able to flow without the need for artificial lift assistance. The new 2 3/8 inch tubing string configuration has the potential to enable a higher velocity flow from the reservoir, which may in turn enable further gas to flow. Testing is expected to commence in the second half of May and it is intended that the well will be flow-tested for 30-60 days.

Strzeszewo LE-1 vertical well

In addition, preparations are continuing for a single-stage hydraulic fracture stimulation on the Strzeszewo LE1 well, the first of two hydraulic fracture stimulations planned for this well, and equipment has begun to arrive on location. The target horizon for this stimulation is the Cambrian Alum shale, and operations are scheduled to commence within the next four weeks. The intention is that the well will then be shut in for a short period, following which it will be flow-tested for a more extended period. The Cambrian Alum shale represents a secondary target on the Company's western Baltic Basin concessions, the primary target being the Ordovician section.

A further round of DFIT (Diagnostic Fracture Injection Test) and hydraulic frac stimulation and testing in the key Ordovician horizon is also planned for this well later in the year. This programme is in line with the Company's strategy, agreed with ConocoPhillips, to utilise lower cost vertical wells to assess the potential of multiple zones in the high-graded area within the Company's western Baltic Basin concessions.

2013 drilling programme

Preparations for the Company's 2013 drilling programme, involving the drilling of two additional vertical wells (with an option for a third well) in its high-graded area, are continuing. Drilling of these wells is due to commence in the second half of 2013 and it is intended that the wells will be completed with a similar DFIT and stimulation programme as on the Strzeszewo LE-1 well.

Kamlesh Parmar, Chief Executive of 3Legs Resources,said:

"We continue to be very much focused on our operations in the Baltic Basin in northern Poland, where we are pursuing our 2013 exploration programme with ConocoPhillips, as previously announced.

We are very pleased that we will shortly be conducting a third phase of testing on the Ordovician horizon in the Lebien LE-2H well. We see this as an important further step in the ongoing appraisal of our western Baltic Basin concessions, which should provide a further indication of this well's reservoir potential. The hydraulic frac stimulation of the Cambrian Alum shale at the Strzeszewo LE-1 well will also yield significant additional data on the potential of the high-graded area within our western Baltic Basin concessions, and will advance our understanding of the potential of the Cambrian Alum shale on our acreage. We look forward to analysing the results of these two operations and updating the market in due course."

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 
 
 Northland Capital Partners         Tel:    +44 207 796 8800 
 Louis Castro 
 Matthew Johnson 
 
 College Hill                       Tel:    +44 207 457 2020 
 Matthew Tyler 
 Catherine Wickman

Notes to Editors

3Legs Resources plc is an independent oil and gas group focused on the exploration and development of unconventional oil and gas resources. 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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