TIDM3LEG
RNS Number : 1081Y
3Legs Resources plc
21 January 2014
For Immediate Release
21 January 2014
3Legs Resources plc
Corporate update
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 corporate
update.
Highlights:
Sale of German concessions
-- Completed an agreement with Rose Petroleum plc for the sale
of our 100% interest in our two German concessions, in exchange for
a 2% royalty and a contribution of EUR400,000 towards back
costs.
-- The two licences were renewed for terms of two years each on 20 December 2013.
Lublewo LEP-1 vertical well
-- Drilling of this well has reached a total depth of 2,924
metres in the Cambrian horizon; some 141 metres of full-diameter
core have been recovered from the well and a comprehensive set of
logs has been run.
-- Preliminary data indicate that the Sasino shale formation in
the area of the well has a similar thickness to that seen in the
Strzeszewo LE-1 vertical well, as expected; the Piasnica shale zone
is slightly thinner than that seen at the Strzeszewo LE-1 well,
also as expected.
-- The well has been cased, cemented and suspended; and the rig
will shortly be prepared for mobilising to the next well location,
Slawoszyno LEP-1.
Strzeszewo LE-1 vertical well
-- Flow testing of the Sasino formation following the single
stage frac of that horizon commenced on 24 December 2013 using a
nitrogen lift.
-- Gas flow to surface from the target zone was achieved for the duration of the test.
-- Flow testing was concluded on 12 January 2014 and a
pressurebuild-up test is now being conducted.
Other preparations for 2014 drilling programme on track
-- Construction of the location for the next vertical well,
Slawoszyno LEP-1, is well advanced and is expected to be completed
by the end of January.
-- Other preparations for the 2014 drilling programme are proceeding as scheduled.
Corporate update
Sale of German concessions
Our two exploration licences in southern Germany, originally
granted in 2009, were renewed on 20 December 2013 after an extended
application process, for further terms of two years each. Following
renewal of these licences, we completed an agreement with Rose
Petroleum plc whereby we agreed to transfer our interest in both
concessions to Rose Petroleum in exchange for a royalty of 2% and a
contribution of EUR400,000 towards our past costs. This transaction
is consistent with our strategy, announced last year, of limiting
our geographical scope to Poland in order to maximise our focus on
our Baltic Basin concessions.
Lublewo LEP-1 vertical well
Drilling of the Lublewo LEP-1 vertical well has now been
completed. The well was drilled to 2,924 metres true vertical depth
into the Middle Cambrian interval. Some 141 metres of full-diameter
4-inch core were recovered from the well over the Lower Silurian,
Ordovician, and Cambrian intervals, and an extensive suite of logs
was also run on the well at total depth. The cores and logs are now
undergoing processing and analysis.
Preliminary analysis indicates that the well encountered a
Sasino section of similar thickness to that seen in the Strzeszewo
LE-1 vertical well, as expected. The precise thickness will be
determined following final processing and analysis of the logs, but
the preliminary data to date confirm our earlier modelling of the
Sasino horizon across the northern portions of our western Baltic
Basin concessions. Preliminary log analysis also indicates that the
Piasnica horizon is slightly thinner than that encountered at the
Strzeszewo LE-1 vertical well, also as expected. Precise figures
will be confirmed once final log processing and analysis is
completed. The well has been cased and cemented and temporarily
suspended at intermediate casing depth. The rig is currently being
prepared for moving to the next well location, Slawoszyno
LEP-1.
Strzeszewo LE-1 vertical well
Following the single stage hydraulic fracture stimulation and
test of the Piasnica formation in this well conducted in the third
quarter of 2013, a single-stage hydraulic fracture stimulation was
successfully executed in the Sasino formation in December 2013.
Cleaning up of the well commenced on 24 December 2013, using a
nitrogen lift as planned. The well continued to clean up for a
period of 19 days, during which time the well flowed natural gas at
modest rates. Some 63% of the frac fluid originally injected was
recovered during this period. The well was shut in on 12 January
2014 and a pressure build-up test is now being conducted.
The hydraulic fracture stimulation and test have succeeded in
their primary objective, namely to gather data that will assist in
finalizing the remainder of the 2014 programme, in particular in
the calibration of the frac design for the planned long lateral
section.
2014 drilling programme
Other preparations for the 2014 drilling programme are
proceeding as planned. Construction of the location for the second
vertical well in the programme, Slawoszyno LEP-1 on our Karwia
concession, is well advanced. Construction is due to be completed
by the end of January, and drilling operations are expected to
commence by late February following rig maintenance and
mobilisation. This well is planned to provide further delineation
of our focus area and potentially an alternative kick-off point for
the long lateral well planned for the second quarter of 2014.
Drilling of the Slawoszyno LEP-1 well is expected to be followed
in turn by the drilling of the planned long lateral well in the
Sasino horizon at one or other of these two locations, Lublewo
LEP-1 or Slawoszyno LEP-1. As previously announced, this decision
will be made once both vertical wells have been drilled.
The planned acquisition of 67 km of 2D seismic data on our
Lebork concession has been completed and the new data are being
sent for processing and interpretation. This data will also assist
in the placement of our planned lateral well, if it is decided to
drill this at Lublewo, and potentially in the implementation of any
future pilot development programme.
Kamlesh Parmar, Chief Executive of 3Legs Resources,said:
"We are pleased to announce the disposal of our interest in our
German licences while at the same time retaining an interest in any
future upside from these concessions. The transaction is consistent
with the strategy we announced at the time of our last AGM, and
demonstrates our commitment to focusing our resources on our most
important project, namely our Polish Baltic Basin concessions.
"We are continuing to make good progress on our announced 2014
drilling programme. The drilling of the Lublewo LEP-1 well is an
important first step in this programme and the extensive core and
log data we have acquired will be invaluable for fine-tuning the
strategy for our long lateral well planned for later this
year."
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
Graham Hertrich
Northland Capital Partners Tel: +44 207 796 8800
Louis Castro
Matthew Johnson
FTI Consulting Tel: +44 207 831 3113
Oliver Winters
Shannon Brushe
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 technical information and opinions contained in this
announcement have been reviewed by Christie Ward Schultz (BSc in
Petroleum Engineering, Texas Tech University), Engineering Manager
of 3Legs Resources plc, who has over 14 years of experience in the
oil exploration and production industry. She 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
MSCFBLLLZFFLBBE
3Legs Resources (LSE:3LEG)
Historical Stock Chart
From Jun 2024 to Jul 2024
3Legs Resources (LSE:3LEG)
Historical Stock Chart
From Jul 2023 to Jul 2024
