3Legs Resources Operational Update

07 November 2012
3Legs Resources Operational Update

3Legs Resources plc - Operations on Baltic Basin concessions in northern Poland

3Legs Resources plc (the "Company"), an independent oil and gas group focusing on the exploration and development of unconventional oil and gas resources, announces the following operational update.

Key points

  • The Company commenced further testing of the Lebien LE-2H horizontal well on 27 October 2012, flowing natural gas initially with the assistance of a nitrogen lift.
  • The well has continued to flow natural gas unassisted, through 3½ inch tubing, since the nitrogen lift was suspended on 29 October.
  • The well has flowed continuously and unassisted at a rate of between 560 and 780 mscf/d of natural gas over the 8-day period since 29 October.
  • The well has also produced between 320 and 450 barrels of frac water per day as it has continued to clean up, and as at 6 November 2012 approximately 26% of the frac water originally injected had been recovered.
  • This performance represents a significant improvement on the result achieved when the well was first tested in 2011 where the well flowed, with the assistance of a nitrogen lift, at a rate of between 450 and 520 mscf/d over an 8-day period prior to being shut in.
  • The plan is to continue further testing of the well in order to determine a stabilised flow rate and to gather additional data on well performance.
  • The Company will issue a further update to the market in due course.

Kamlesh Parmar, Chief Executive of 3Legs Resources,said:

"We have started further testing of the Lebien LE-2H well and we are very pleased that the well is showing a significantly improved performance as compared to 2011, in that the well now flows without the assistance of a nitrogen lift, and it flows at a better rate than it did in 2011. We will continue to monitor the encouraging data from this further testing and will issue a further announcement in due course."