1 Mar 2021 07:00
01 March 2021
EGDON RESOURCES PLC
("Egdon" or "the Company")
Biscathorpe Project - Submission of Planning Application
Egdon Resources plc (AIM: EDR, "Egdon") is pleased to provide an update on the Biscathorpe Project ("Biscathorpe") in Lincolnshire Licence PEDL253 where the Company holds a 35.80% operated interest.
Further to our announcement of 10 November 2020, Egdon is pleased to advise that on 26 February 2021 it has submitted an application to Lincolnshire County Council ("LCC") as the Mineral Planning Authority, for planning permission for a side-track drilling operation, associated testing and long-term oil production at the Biscathorpe-2 Wellsite, High Street, Biscathorpe, Louth, Lincolnshire. As the proposed development was screened by LCC as being EIA development, the application was accompanied by an Environmental Statement.
The planning application will now be validated before LCC commences consultation on the proposals.
Subject to receipt of planning and other consents, the Biscathorpe-2Z side-track conventional appraisal well could potentially be drilled in H2 2021 and would target the Dinantian Carbonate and Basal Westphalian Sandstone reservoirs.
Commenting, Mark Abbott, Managing Director of Egdon Resources plc, said:
"We are pleased to confirm submission of a thorough and robust planning application, completed within the expected timeframe despite the challenges of the current operating environment. We thank our advisors and consultants for their thorough and professional work and look forward to updating stakeholders as the planning consultation progresses.
Biscathorpe represents a material and financially robust opportunity to secure an indigenous oil resource which would generate local and regional economic benefits and have a lower carbon footprint when compared to imported oil."
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, Lydia Zychowska 020 7220 1666
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 41 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.
Biscathorpe Highlights
· PEDL253 is located within the proven hydrocarbon fairway of the Humber Basin, on-trend with the Keddington oilfield which produces oil from a Carboniferous Westphalian aged reservoir
· Biscathorpe-2 (EDR: 35.8%) drilled to a TD of 2133 m in February 2019 and suspended for potential side-track
· Oil bearing Dinantian Carbonate reservoir of 68 metres has been confirmed by independent petrophysical analysis and geochemical analyses of cuttings samples carried out by APT confirms the presence of 33-34 API gravity oil
· Dinantian carbonate oil play has gross Mean STOIIP of 24.3 million barrels of oil (mmbo) with an upside of case of 36 mmbo
· Evidence from reprocessed 3-D seismic for a thickened Westphalian Sandstone reservoir interval is apparent with Gross Mean Prospective Resources associated with the Westphalian target total 3.95 mmbo with an upside case of 6.69 mmbo and, where economic modelling of the Westphalian target alone, yields break-even full cycle economics estimated at US$18.07 per barrel and a gross NPV(10) valuation of £55.6 million
· Detailed technical evaluation by the PEDL253 Joint Venture has identified an accessible drilling target on the Biscathorpe Prospect and plans are advanced for drilling B-2Z during H2 2021 that will allow both the Dinantian Carbonate and Basal Westphalian Sandstone targets to be tested
· Planning application submitted during February 2021 for side-track drilling, testing and long-term production of the proposed B-2Z appraisal well, subject to planning consent
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.