13 Jul 2017 10:00
13 July 2017
EGDON RESOURCES PLC
("Egdon" or "the Company")
Biscathorpe-2 Exploration Well - Issue of environmental permits
Egdon Resources plc (AIM:EDR) is pleased to announce the issue by the Environment Agency of the environmental permits required for the planned operated Biscathorpe-2 exploration well on PEDL253 in Lincolnshire. The prospect is located between Lincoln and Louth on the southern margin of the Humber Basin on trend with and to the west of the producing Keddington oil field (14 kilometres, Egdon operated) and the Saltfleetby gas field (20 kilometres).
The Biscathorpe-2 well will target a down-dip area of the structure tested by the crestal Biscathorpe-1 well in 1987 by BP which found oil in a 1.2 metres thick sandstone of Westphalian (Carboniferous) age. The sandstone is expected to thicken to the north and east from the original well and the structure has been mapped using reprocessed 3D seismic data. The Mean Gross Prospective Resources at Biscathorpe are estimated by Egdon to be c. 14 million barrels of oil ("mmbo") and the well has been assessed by the Company as having a 40% chance of success.
Current Licence interests in PEDL253 are:
Egdon Resources U.K. Limited (Operator) 52.80% (45.60% share of well cost)
Montrose Industries Ltd. 35.20% (30.40% share of well cost)
Union Jack Oil Plc 12.00% (24.00% share of well cost)
The Company expects to commence operations including site construction later in 2017. The well has a planned depth of 2,100 metres.
Mark Abbott, Managing Director of Egdon Resources plc, said:
"After a long and extremely thorough review of our proposals by the Environment Agency, we are pleased to receive the environmental permits for the proposed Biscathorpe-2 exploration well. This validates our position that the planned operations and procedures will prevent, mitigate and minimise environmental impacts. Egdon takes its safety, environmental and social obligations very seriously and is committed to maintaining the highest standards.
We now look forward to drilling this significant conventional oil prospect. If a stratigraphic element to overall trap is proven, the potential resources could be considerably larger than the mean case of 14.0 mmbo."
For further information please contact:
Egdon Resources plc
Mark Abbott 01256 702 292
Buchanan
Richard Darby, Anna Michniewicz 020 7466 5000
Nominated Adviser and Broker - Cantor Fitzgerald Europe
David Porter, Sarah Wharry (Corporate Finance) 020 7894 7000
Mark Westcott (Sales)
Joint Broker - VSA Capital Limited
Andrew Monk (Corporate Broking) 020 3005 5000
Andrew Raca (Corporate Finance)
Notes to Editors:
Biscathorpe-2
In March 2015 Egdon Resources U.K. Ltd, as operator of the licence area PEDL253, received temporary planning permission from Lincolnshire County Council to drill a conventional exploratory oil well on farmland to the west of the hamlet of Biscathorpe, approximately nine kilometres to the west of Louth in Lincolnshire.
The proposals will involve conventional drilling for oil and for clarity the operations at the site will not involve the process of hydraulic "fracking" for shale gas. This area of Lincolnshire does not have the specific rock-formation types that contain shale gas.
Egdon Resources plc
Egdon Resources plc (LSE: EDR) is an established UK-based exploration and production company primarily focused on onshore exploration and production in the hydrocarbon-producing basins of the UK.
Egdon holds interests in 45 licences in the UK and France and has an active programme of exploration, appraisal and development within its balanced portfolio of oil and gas assets. Egdon is an approved operator.
Egdon was formed in 1997 and listed on AIM in December 2004.
In accordance with the AIM Rules - Note for Mining and Oil and Gas Companies, the information contained in this announcement has been reviewed and signed off by the Managing Director of Egdon Resources plc Mark Abbott, a Geoscientist with over 26 years' experience.
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.
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).