EDR.L Share News (EDR)

LONDON (Dow Jones)--Egdon Resources PLC (EDR.LN) said Monday that at its Keddington oil field located in Lincolnshire license PEDL005, began producing hydrocarbons on June 7 and for the seven days until June 14, oil production was 1,855 barrels at an average rate of 265 barrels of oil per day. MAIN FACTS: -Egdon is the operator of the Keddington oil field with a 75% interest. -Egdon's joint venture partners are Terrain Energy Limited (15%) and Alba Resources Limited, a wholly-owned subsidiary of Nautical Petroleum plc (10%). -The Keddington-3z well was completed for pumped production on June 4 following delays caused by the need for a work-over to repair leaking production tubing. -As significant flowing pressure was observed, the pump was stopped and the well was allowed to flow naturally. -The well has been free-flowing oil and gas to the surface since this time. -The well is also producing significant quantities of gas with the daily rate being over 500,000 cubic feet of gas per day. -The currently observed production represents over a ten fold increase in daily oil volume and a five fold increase in gas volume from the Keddington-2z donor well. -It should also be noted that flow from the well is currently being restricted to manage the gas flows and pressures in the surface facilities. -The flowing pressure at the well head has been steady at around 69 bar. -Given the significant levels of gas being produced from this well, Egdon is now looking to resurrect plans for on-site electricity generation with a view to developing an additional revenue stream and utilizing the produced gas. -Shares at 1103 GMT up 0.50 pence, or 3.77%, at 13.75 pence. -By Iain Packham, Dow Jones Newswires; 44-20-7842-9269; iain.packham@dowjones.com (END) Dow Jones Newswires June 14, 2010 07:05 ET (11:05 GMT)