Commencement of drilling operations at Biscathorpe

RNS Number : 4043M

Egdon Resources PLC

07 January 2019

 

            07 January 2019

EGDON RESOURCES PLC

 ("Egdon" or "the Company")

Commencement of drilling operations at Biscathorpe

Egdon Resources plc (AIM:EDR) is pleased to announce the commencement of drilling operations at the Biscathorpe-2 exploration well on licence PEDL253 in Lincolnshire. The Biscathorpe-2 well was spudded today at 12:30 hours.

The well will be drilled to a total depth of about 2,100 metres below ground level and is expected to take around 30 days to complete.  Biscathorpe-2 will target a combined structural/stratigraphic trap at a depth of over 1,800 metres below Mean Sea Level defined on reprocessed three-dimensional seismic data. The targeted Basal Westphalian sandstone reservoir is expected to thicken at the well location to the north of the crest of the structural high which was drilled by the Biscathorpe-1 well (BP, 1987) which found a 1.2m thick, oil saturated section of the sandstone reservoir. Egdon's AGM Presentation of 6 December 2018 (http://www.egdon-resources.com/wp-content/uploads/2018/12/2018-12-06-EDR-AGM-Presentation-Final.pdf) provides further details on the Biscathorpe Prospect, including a cross section and a comparison with the geology of the Reepham field some 20km south west of Biscathorpe, just to the west of our Fiskerton Airfield producing oil field. At the Reepham oilfield, the Basal Westphalian sandstone reservoir thickens dramatically off a 'structural high' over a very short distance and a similar development of the target reservoir is expected at Biscathorpe-2.

The chance of success for Biscathorpe-2 is estimated as 40% and the range of Prospective Resources (as estimated by Egdon) is tabulated below.

		P90	P50	P10	Mean
	Oil in Place (mmbo)	7.52	29.50	142.00	56.00
	Prospective Resources (mmbo)	1.84	7.30	35.30	14.00
	Net to Egdon 35.8% interest (mmbo)				5.0

Following several previously reported farm out transactions by Egdon and Montrose Industries Limited, the current licence interests and expected paying interests* for the well are listed below:

Egdon Resources U.K. Limited (Operator)            35.80% (23.29% share of well cost*)

Montrose Industries Limited                                  22.20% (13.34% share of well cost*)

Union Jack Oil Plc                                                 22.00% (37.17% share of well cost*)

Humber Oil & Gas Limited                                    20.00 % (26.25% share of well cost*)

(*at the current estimated well cost)

For clarity, the operations at the Biscathorpe-2 wellsite will not, either now or in the future, involve the process of High Volume Hydraulic Fracturing for shale gas.

Mark Abbott, Managing Director of Egdon Resources plc, said:

"We are pleased to report the start of drilling at Biscathorpe-2, one of the largest remaining un‑appraised oil prospects onshore UK.  In addition to the defined structural closure, stratigraphic trapping - if present - could lead to significant upside for oil resources. We look forward to updating shareholders with the preliminary results from the well in early-February. "

For further information please contact:

Egdon Resources plc

Mark Abbott                                                                                  01256 702 292

Buchanan

Ben Romney, Chris Judd                                                              020 7466 5000

Nominated Adviser and Broker - Cantor Fitzgerald Europe               

David Porter/Nick Tulloch (Corporate Finance)                            020 7894 7000

Caspar Shand Kydd (Sales)

Joint Broker - VSA Capital Limited

Andrew Monk (Corporate Broking)                                               020 3005 5000

Andrew Raca (Corporate Finance)

Notes to Editors:

Egdon Resources plc (LSE: EDR) is an established UK-based exploration and production company focused on onshore exploration and production in the hydrocarbon-producing basins of the UK. 

Egdon holds interests in 44 licences in the UK and has an active programme of exploration, appraisal and development within its portfolio of oil and gas assets.  Egdon is an approved operator in the UK. 

Egdon was formed in 1997 and listed on AIM in December 2004.

Qualified Person Review

In accordance with the AIM Rules - Note for Mining and Oil and Gas Companies, this release has been reviewed by Mark Abbott, Managing Director of Egdon, who is a geoscientist with over 30 years' experience and is a member of the Petroleum Exploration Society of Great Britain and a Fellow of the Geological Society.  Mr Abbott has consented to the inclusion of the technical information in this release in the form and context in which it appears.

Evaluation of hydrocarbon volumes has been assessed in accordance with 2007 Petroleum Resources Management System prepared by the Oil and Gas Reserves Committee of the Society of Petroleum Engineers (SPE) and reviewed and jointly sponsored by the World Petroleum Council (WPC), the American Association of Petroleum Geologists (AAPG) and the Society of Petroleum Evaluation Engineers (SPEE).

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). Upon the publication of this announcement via Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain

 

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