Curzon Energy has signed a rig contract with Paul Graham Drilling and Services for the upcoming workover of five existing wells at its Coos Bay CBM project.
Curzon Energy is Operator and has a 100% working interest in the Coos Bay CBM project, c. 45,000 acres of known Coalbed Methane (CBM) Gas accumulations in Coos Bay, Oregon, with 2C contingent resources of 273.5BCF. The Company is implementing a cost effective staged development plan, targeting first gas 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 and connecting them to the 12" Coos Bay Gas Pipeline, which is located just 15 m from Curzon's wholly owned existing intra field pipeline.
Paul Graham has commenced mobilization from their headquarters in California and expects their crews and equipment to arrive in Coos Bay this week. They will commence work shortly after their arrival and the Company expects the clean-out work at the five wells to be completed within approximately twenty-five days after commencement of the work.
As part of the Phase I programme, the Company continues to progress the sales contract with NW Natural in addition to working with engineers on the testing and design of the water disposal system. Alongside these changes the company has improved the infrastructure for rig access and is finishing work on the road to the compressor location.
Stephen Schoepfer, Managing Director of Curzon Energy said:
"Following Curzon Energy's successful admission to the London Stock Exchange in October 2017, we have been busy deploying the funds raised to ensure we have the right infrastructure in place for this highly attractive, low risk development. We are delighted to announce the signing of a rig contract for our low-cost Phase I drilling programme.
"Drilling is expected to commence in the near future and we remain on track to deliver first gas and revenues in Q2 2018. We look forward to updating shareholders on our progress."
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.