20 Feb 2019 15:45
20 February 2019
EGDON RESOURCES PLC
("Egdon" or "the Company")
Completion of drilling operations Biscathorpe-2
Egdon Resources plc (AIM:EDR) announces the completion of drilling and logging operations at the Biscathorpe-2 exploration well in Petroleum Exploration and Development Licence PEDL253 located in Lincolnshire, where Egdon holds a 35.80% interest.
The Biscathorpe-2 well has been drilled to a total depth (TD) of 2,133 metres within the Dinantian Limestone. Logging operations were delayed as the wireline tools were unable to get to TD due to hole conditions and a pipe-conveyed solution had to be mobilised and deployed.
Preliminary analysis indicates that the primary objective, the Basal Westphalian Sandstone which was encountered high to prognosis, was poorly developed at the Biscathorpe-2 location and was not thickened with respect to Biscathorpe-1 as expected in the pre-drill model. The Biscathorpe "play" has thus not been properly tested by the well with the results of the well indicating that the Basal Westphalian Sandstone has potential to be more thickly developed to the north and north-east of Biscathorpe-2 location away from what appears to be a more extensive than expected palaeo-high.
The well recorded elevated gas readings and oil shows supported by calculated oil saturations in the Dinantian Carbonate over an interval of 99 m indicating proximity to an effective petroleum system. The formation has very low porosity and would not make an effective reservoir. A number of porous sandstone reservoir intervals were encountered in the shallower Westphalian sequence but all were interpreted as water wet.
The forward plan is to seal the open-hole section with cement and to suspend the well in order retain the option for a potential future side-track. This will be considered once the new well data is integrated into an updated subsurface model. Any further drilling operation would require additional consents including planning permission.
Mark Abbott, Managing Director of Egdon Resources plc, said:
"Although the Biscathorpe-2 well did not encounter the thickened Basal Westphalian Sandstone as predicted, we are encouraged by the presence of shows in the underlying Dinantian Limestone which demonstrates a functioning petroleum system and we will now take some time to incorporate the results of the well into our prospect model before deciding on the future strategy for further evaluating the Biscathorpe Prospect.
Elsewhere within our portfolio we are encouraged by the rapid progress being made in the drilling of Springs Road-1 where the operator, IGas, has recently advised that they were commencing coring operations in the Bowland Shale.
During the coming week we also expect to provide shareholders with a wider operational update ahead of our Interim Results for the six months ended 31 January 2019, which are to be released in April."
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 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.
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