3Legs Resources Agrees New 2013-14 Work Program With ConocoPhillips

LONDON--3Legs Resources PLC (3LEG.LN) an oil and gas company, said it concluded talks with ConocoPhillips (COP) over the company's 2014 exploration program, with the two parties committing to a new $63 million work program for 2013 to 2014.

MAIN FACTS:

- Data gathered from vertical wells to date enabled a detailed understanding of well stimulation effectiveness and of reservoir properties in target shale horizons

-Parties agreed that the best way to assess flow-rate potential will be to drill, stimulate and test a long lateral well in the Sasino shale horizon

-3-well 2013-14 program to achieve this will start in 4Q2013 with 2 vertical pilot wells to be drilled in 3Legs' high-graded area

-Program will culminate in a long lateral well probably in the Sasino formation by way of side-track from one of the two planned vertical wells, completed with a multi-stage stimulation and tested from 2Q-3Q 2014

-Cost of the committed work program is estimated at $63 million gross ($19 million net to 3Legs)

-3Legs forecasts a cash position of GBP17 million at end of the third quarter of 2014

-3Legs shares at 0907 GMT down 1 pence or 2.6% at 23 pence valuing the company at GBP20 million.

-Write to Ed Ballard at [e-mail]

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