28 Mar 2019 07:00
28 March 2019
EGDON RESOURCES PLC
("Egdon" or "the Company")
Springs Road-1 Reaches Total Depth
Egdon Resources plc is pleased to report the main points from the announcement made this morning by IGas Energy plc ("IGas") as they concern the Springs Road-1- ("SR-01") well on license PEDL140, in which Egdon holds 14.5% interest:
· The Springs Road-1 well has reached a total depth of 3,500 metres after encountering all three pre-drill targets - the Bowland Shale, the Millstone Grit and the Arundian Shales.
· A hydrocarbon bearing shale sequence of over 250 metres was encountered within the upper and lower Bowland Shale (as announced on 11 March 2019). In addition, significant gas indications were observed within the Millstone Grit sequence, deeper parts of the lower Bowland Shale and the Arundian shale.
· The cores and wireline logs will now undergo a suite of analysis, the first results of which should be available in the second quarter of 2019 and which will give us further insight into the resource potential and shale characterisation that will be utilised for future appraisal and development of the wider East Midlands area.
· The Springs Road drilling performance has been very encouraging with improved rates of penetration leading to better than anticipated drilling performance and lower costs.
Commenting on the announcement Mark Abbott, Managing Director of Egdon Resources plc, said:
"These results from the Springs Road-1 well are highly encouraging, having encountered all three pre-drill objectives and demonstrating the presence of a significant sequence of hydrocarbon bearing shales. We await with anticipation the results of the detailed core and wireline log analysis which will provide additional insight into the resource potential of the Gainsborough Trough where Egdon holds interests in 82,000 net acres. We look forward to updating shareholders in due course."
For further information please contact:
Egdon Resources plc
Mark Abbott 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:
Gainsborough Trough
Egdon has extensive operated and non-operated acreage interests in the Gainsborough Trough unconventional gas plays in the East Midlands.
Egdon are the third largest net acreage holder in the Gainsborough Trough play with 82,000 net acres with shale/tight gas potential.
Egdon's licences in the Gainsborough Trough contain an estimated 20 TCF of net Undiscovered GIIP in Upper and Lower Bowland-Hodder Shales (or 40% of Egdon's total net undiscovered unconventional resources GIIP of 51 TCF (ERCE 2014 and 2016 see below). The Springs Road-1 well is the first modern well employing the latest logging and coring techniques to test these Carboniferous age tight gas and shale gas plays with Egdon's acreage.
Further information on the Gainsborough Trough is available on our website at http://www.egdon-resources.com/gainsborough-trough/ and http://www.egdon-resources.com/operations/uk/east-midlands/
Further information on the Springs road well can be found at the operator IGas' engagement website http://www.igas-engage.co.uk/our-work-in-north-nottinghamshire/
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.
ERCE Estimates
ERCE's estimates of undiscovered GIIP are subject to exploration risk, which may be considerable. ERCE has not assessed this risk as no Prospective Resources have yet been attributed to these properties by Egdon and ERCE, and further geoscientific and engineering data need to be acquired to be able to quantify these resources. ERCE notes that mining of the overlying coal measures has occurred in a number of the licences, which may affect site access and drilling operations. In the case where Prospective Resources are identified within these licences, there is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources.
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