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AIM: SLME
05 March 2013
Silvermere Energy plc
(“Silvermere” or the “Company”)
Operations Update
Silvermere Energy plc, the independent oil and gas company with assets in the Gulf of Mexico, is pleased
to confirm further progress on production and sales of oil and gas during February 2013 from the I-1 well
on its Mustang Island 818-L Field. This is based on information provided by the Operator, Dominion
Production Company LLC (“Dominion”).
Total production and sales of gas recorded during the month were 11,477,000 standard cubic feet (scf),
an increase of 32% month to month and total production of oil was 1,845 barrels, an increase of 4%
month to month (1,912,068 scf and 308 barrels, respectively, net to Silvermere). The well was flowing for
73% of the time in February, representing a significant improvement on the previous month.
Flow rates were restricted at times due to partial obstruction of the choke with drilling mud and debris as
the well clean-up continued. When unrestricted by mud and debris, the well flowed at typical values of
700,000 scfpd and 155 bopd with a tubing head pressure of 2700 psi, in line with previous guidance.Oil produced during January and February has not yet reached the shore installation and sales meters
due to slow flow rates in the 20” line at the high pipeline operating pressure. The operator has advised
that it intends to reduce pipeline operating pressure to increase flow velocities in the pipeline and thereby
to deliver first oil sales.Silvermere owns a 16.66% working interest in the I-1 well and a 33.33% working interest in future wells
on the leases.
Commenting on these recent developments, Andy Morrison, Chief Executive of Silvermere, said:
“We are pleased to note the improvements achieved during February 2013 which keep us on track to
deliver flow rates in line with previous projections. The clean-up is continuing and we look forward to
further progress with operations in March.”This statement has been approved by Mr Tom Gunningham CEng MEI, Director of Rockflow Resources
Ltd, an independent oil and gas consultancy, who is a Chartered Petroleum Engineer with 24 years'
experience in the Petroleum Industry, and who is a Qualified Person in accordance with the guidance
note for Mining, Oil & Gas Companies issued by the London Stock Exchange in respect of AIM
Companies.
--ENDS--
For further information please contact:
Silvermere Energy plc
Andy Morrison, Chief Executive
+44 (0)7980 878 561
Merchant Securities Limited (Nominated Adviser and Broker)
Lindsay Mair/Scott Mathieson/Catherine Miles
+ 44(0)20 7628 2200
Peterhouse Corporate Finance Limited
Jon Levinson
+44 (0)20 7469 0937
