10 January 2018
Curzon Energy Plc
("Curzon Energy" or the "Company")
First Five Well Workover and Clean-Out Operations Update
Coos Bay Coalbed Methane Field, Oregon, USA
Curzon Energy Plc, the 100% owner of the 45,000 acre Coos Bay Coalbed Methane (CBM) Project, is pleased to announce that workover and clean-out operations have been completed on all five existing wells, which form part of the Phase I development plan, located in the north-west area of the Coos Bay licence acreage.
Highlights
· Workover and clean-out operations have been completed on all five existing wells (1-21, 9-21, 15-21, 13-15 and 16-16).
· Outcomes so far from the workover operations completely correlate with the technical analysis conducted by Curzon in advance of this five well workover programme.
· Workover operations have removed sand and coal fines in each of the five wellbores.
· Removal of approximately 120 ft of old pump rods and 180 ft of old tubing from the bottom of well 13-15 during a fishing operation.
· Upgrading of existing surface infrastructure and testing equipment completed.
· Extensive well testing to commence shortly.
· Remain on track to deliver first gas in Q2 2018.
Following evaluation of this work programme, the Company believes that well bore obstructions due to the presence of sand, coal and debris, may have created flow restrictions, in particular from deeper pay completions, resulting in historic test rates below the actual potential of these wells.
In parallel with the workover operations, the Company has upgraded existing surface infrastructure and testing equipment in advance of an extensive testing programme that will commence shortly in order to determine commercial viability of the CBM Project and optimise a field-wide development plan as part of a larger Phase II commercialisation.
Stephen Schoepfer, Managing Director of Curzon Energy said:
"We are delighted that operations continue to advance rapidly on our Phase I development plan at Coos Bay where results thus far fall in line with our technical assumptions and we remain on track to deliver first gas in Q2 2018. Curzon is now entering into a busy period of testing of our first five wells and I look forward to updating the market in due course."
For further information please contact:
Curzon Energy PLC |
c/o Camarco |
Stephen Schoepfer / Thomas Wagenhofer |
+44 20 3757 4980 |
www.curzonenergy.com |
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SP Angel Corporate Finance LLP |
+44 20 3470 0470 |
Richard Hail |
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Camarco (Financial PR) |
+44 20 3757 4980 |
Georgia Edmonds / Kimberley Taylor / Monique Perks |
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Notes to Editors:
Curzon Energy Plc, is the 100% owner of the 45,000 acre Coos Bay Coalbed Methane (CBM) Project, located in Oregon USA. Coos Bay has 2C contingent gas resources of 273.5 BCF.
The Company is implementing a cost effective staged development plan, targeting first gas and cash generation from Phase I in Q2 2018. The Phase I work programme consists of the low-cost workover of five existing, and drilling of two new wells.
The Company is led by an experienced Board and senior management team who have extensive industry and financial experience. Curzon Energy is listed on the LSE Main Market under the ticker CZN.
About Coalbed Methane (CBM):
Coalbed methane gas (CBM) (or coal seam gas (CSG) or coal-mine methane (CMM)), is a form of natural gas extracted from coal seams or coal deposits. CBM is generated during the process of coalification which is the transformation of plant material into coal and is contained in the coal microstructure. Typical CBM recovery entails initially pumping water out of the coal to allow the natural gas to escape. Methane is the principal component of the natural gas from CBM production, which is typically made up of ~95 per cent methane and normally does not contain hydrogen sulphide or other sulphur compounds. Natural gas produced from CBM can normally be added to natural gas pipelines without any special treatment.
Competent Person's Statement
The information contained in this announcement has been reviewed and approved by Thomas Wagenhofer, Technical Director of Curzon, who is a petroleum engineer and oil and gas executive with over 20 years' international industry experience. Mr. Wagenhofer holds a MS degree in Petroleum Engineering from the University of Texas at Austin (1995) and a BS degree in Petroleum Engineering from the University of Alaska Fairbanks (1994). He is a registered Professional Engineer with the Texas Board of Professional Engineers (current status inactive) in the State of Texas, USA.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
