Egdon excited after Wressle's Penistone tests show evidence of column

LONDON (ShareCast) - Egdon Resources (LSE: EDR.L - news) said the results of flow tests at Penistone Flags, its 25% owned Wressle-1 oil and gas discovery near Scunthorpe indicated the presence of an oil column below the gas zone. Perforation tests at Zone 3a in the Penistone Flags produced "good quality oil" at a flow that equated to approximately 77 barrels per day (bpd).

Managing director Mark Abbott said: "The results from Wressle continue to be very positive. The latest test has confirmed the presence of an oil column below the gas zone in the Penistone Flags, albeit in tighter sandstones." He noted that the well has so far successfully flowed hydrocarbons from four separate areas, which together have totalled 710 barrels of oil equivalent per day (boepd) from all zones.

The company and its partners are now planning a pumped extended well test (EWT) in mid-May for over two months to validate the potential output from the Wressle discovery.

"We will now focus on integration and interpretation of the engineering and geotechnical data that will provide the information needed to quantify the resource volumes and optimise the field development and monetisation options," Abbott added.

Shares (Berlin: DI6.BE - news) in Edgon were up 15.1% to 8.34p by 13:05 on Friday.