LONDON (Alliance News) - Egdon Resources PLC and Union Jack Oil PLC Monday said they have started drilling the Laughton-1 exploration well at their licence in Lincolnshire.
The pair said drilling operations started on Friday at the PEDL209 onshore licence, where Egdon holds a 50% stake alongside Union Jack Oil, which holds a 10% stake. The other partners are Blackland Park Exploration Ltd with a 28% stake and Stelinmatvic Industries Ltd with a 12% stake.
The well will target a structural trap at a depth of over 1,500 metres defined on reprocessed two-dimensional seismic data. The Laughton prospect has multiple conventional reservoir targets but the primary aim is to intersect the Silkstone Rock, a 15 metre thick sandstone interval.
Two other potential reservoirs, the Kilburn Sandstone and the Wingfield Flags, also will be targeted by the well, the pair said.
All of the targets combined have a prospective resource of 1.3 million barrels, according to estimates provided by Egdon.
Egdon and Union Jack Oil stressed the well does not involve, and will not involve, hydraulic fracturing, otherwise known as fracking.
Union Jack Oil is earning its 10% stake in the licence by funding 16.67% of the cost of the Laughton well.
Egdon shares were trading flat Monday morning at 7.50 pence per share, whilst Union Jack shares were up 9.1% to 0.120 pence.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
Union Jack (UJO)