Following three months of testing operations at Egdon's Wressle discovery we view the find as moving towards commercial discovery status. Having successfully produced oil from four distinct zones, the well is to be placed on an extended pumped well test from mid-May. We now include Wressle in our core NAV for the company, which increases to 10.1p/share. Wressle represents a positive result for Egdon's conventional drilling campaign, which is set to restart later in the year with wells at Laughton, North Kelsey and Biscathorpe, in combination worth a potential 75p (success case) to the company.

Extended pumped well test the next step at Wressle

Egdon has confirmed the next step for Wressle will be an extended pumped well test of the Ashover Grit and Penistone Flags zones. The test, by means of an installed beam pump, is expected to commence in mid-May and is aimed at quantifying the production levels that could be attained once the well is placed on long-term production. We expect to be able to update reserves and the conceptual development plan for Wressle on completion of the extended pumped well test.

Tags: Egdon Resources Plc