RWE Dea Abandons Herzogsbrunnen 1 Well in Germany

06 January 2010

The first exploratory well in the search for oil deposits north of Gifhorn unfortunately failed to encounter oil at the target horizon.

About four weeks after drilling began, the Herzogsbrunnen 1 well reached the potential storage formation, a sandstone layer located at a depth of around 1,500 metres, as expected. Despite the fact that the rock formation shows good storage properties in terms of its permeability and porosity, the pores within the rock do not contain oil. In the course of drilling, two core samples were retrieved from below ground, and these are currently being analysed at RWE Dea's Wietze Laboratory in order to gain additional insights into local geological structures. Upon completion of the drilling operation, the Herzogsbrunnen 1 well will be plugged, and the drilling site will be dismantled completely before being recultivated.

RWE Dea will continue with the drilling program in this region. The drilling rig will be moved and set up at the site of the second exploration well, Quellenburg 1, located between Wesendorf and Wagenhoff. This site is considered to be geologically independent in terms of the results of the first exploration well, Herzogsbrunnen 1. Drilling of the new well is scheduled to commence at the end of January.

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