10 Nov 2020 07:00
10 November 2020
EGDON RESOURCES PLC
("Egdon" or "the Company")
Biscathorpe Planning Update
Egdon Resources plc (AIM: EDR, "Egdon") is pleased to provide an update on the Biscathorpe Project in Lincolnshire Licence PEDL253 where the Company holds a 35.80% interest.
This information will also be provided at a Biscathorpe Community Liaison Group meeting being held later today 10 November 2020.
As previously advised, a detailed technical evaluation by the PEDL253 Joint Venture has identified accessible drilling target areas on the Biscathorpe Prospect, where evidence for a thickened Westphalian sandstone reservoir interval is evident on the reprocessed 3-D seismic. These areas can be targeted by a side-track of the existing Biscathorpe-2 well which was suspended following drilling operations in 2019. The proposed side-track will also target the oil column logged in the underlying Dinantian Carbonate in Biscathorpe-2.
Egdon, on behalf of the PEDL253 joint venture partners, will be submitting an application for planning permission for the side-track drilling operation, associated testing and in a success case the long term production of oil at the site.
A screening opinion was sought from Lincolnshire County Council (LCC) in respect of the need for an Environmental Impact Assessment, given the scope of the proposed application, which includes production, and the site location. A positive screening opinion has been adopted by LCC and as such the planning application will need to be accompanied by an Environmental Statement which integrates a number of specialist reports and assessments. This thorough process will enable Egdon to identify and address any potential environmental impacts arising from the proposed activity.
Notwithstanding social distancing requirements and restrictions on meeting as a result of COVID-19, Egdon plans to engage with the local community and statutory consultees via a virtual public consultation event ahead of finalising the submission.
The planning application will be submitted before the end of February 2021.
Commenting, Mark Abbott, Managing Director of Egdon Resources plc, said:
"Biscathorpe represents a material and financially robust opportunity to secure a lower carbon footprint (when compared to imports) indigenous source of oil which would generate local and regional economic benefits. Our planning application will include long term production, which if approved would provide clarity on planning, ahead of further drilling and would enable rapid development in a success case.
We are committed to consulting with the local community and other stakeholders and today's community liaison group meeting provides an opportunity to commence this process as we continue to develop the detailed planning application for submission."
For further information please contact:
Egdon Resources plc
Mark Abbott / Martin Durham 01256 702 292
Buchanan
Ben Romney, Chris Judd 020 7466 5000
Nominated Adviser & Joint Broker - WH Ireland Limited
Chris Hardie 020 7220 1666
Lydia Zychowska
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 43 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.
On 30 March2020, Egdon advised the following in respect of the Biscathorpe prospect:;
· Economic modelling showed that Biscathorpe was a financially robust project even in the current low oil price environment
· The principal Westphalian sandstone target has an estimated un-risked gross NPV(10) of £55.6 million
· Break-even full-cycle economics (including all capital costs) were estimated to be (NPV(10)) US$18.07 per barrel of oil
· A 57 metre oil bearing section in the Dinantian Carbonate of Biscathrope-2 represents a secondary target with potentially significant commercial upside
· The identified drill targets are accessible via a side-track of the suspended Biscathorpe-2 well.
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.
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.
Glossary of Terms
Side-Track - A well drilled directionally out of an existing wellbore.
NPV(10) - The present day value of the cumulative cash flows from a project using a 10% annual discount rate
Reservoir - are rock formations capable of containing fluids, namely oil, gas and water (brine). These fluids accumulate in the natural pores and fractures that exist in the reservoir rock. Typical reservoirs comprise sandstones or limestones (carbonates).