Europa Oil & Gas (Holdings) Plc Update on Wressle, North Lincolnshire
July 05 2018 - 9:43AM
UK Regulatory
TIDMEOG
Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG / Sector: Oil & Gas
5 July 2018
Europa Oil & Gas (Holdings) plc ('Europa' or 'the Company')
Update on Wressle, North Lincolnshire
Europa Oil & Gas (Holdings) plc, the UK and Ireland focussed oil and gas
exploration, development and production company, notes today's update from
Egdon Resources ('Egdon') regarding the submission to North Lincolnshire
Council ('NLC') of a new planning application ('the Application') for the
development of the Wressle oil field development on PEDL 180 in the East
Midlands ('the Submission').
The Submission follows the Planning Inspector's decision to reject Egdon's
appeals ('the Appeals') against the two planning refusals by NLC's Planning
Committee, as announced on 5 January 2017. Europa has a 30% working interest
in Wressle alongside Egdon (operator, 30%), Union Jack Oil (27.5%), and Humber
Oil & Gas Limited (12.5%) ('the Joint Venture partners'). Egdon`s full RNS
including Notes is reproduced at the end of this release.
Europa's CEO, Hugh Mackay, said: "Considerable work has been put into this new
planning application for the Wressle oil field, and we are confident it
comprehensively addresses all outstanding matters. With an anticipated flow
rate of 500 bopd, Europa's 30% interest in Wressle would see our net daily
production more than double to around 250 bopd which at today's oil prices
would generate a valuable revenue stream for reinvestment across our
multi-stage portfolio of licences onshore UK and offshore Ireland. I look
forward to providing further updates in due course."
Egdon`s RNS published today is as follows:
Egdon Resources plc (AIM:EDR) is pleased to announce the submission to North
Lincolnshire Council (NLC) of a new planning application (the Application) for
the development of the Wressle oil field, which the Company believes
comprehensively addresses the reasons for the refusal of the original planning
applications and the subsequent appeals.
The Application is supported by a detailed planning and sustainability
statement, a suite of technical drawings showing construction and layout
details and updated and new technical assessments.
The Company believes that the Application takes full account of the key
findings of the Planning Inspector's decision to dismiss the Company's appeals
as set out in his decision letter of 4 January 2018, which identified three key
issues in his decision; the absence of a ground conditions survey report; the
absence of sufficient evidence on the adequacy of the Geosynthetic Clay Liner
(GCL) covering; and uncertainty with regards to the near surface geology and
specifically the presence of capping layers to the underlying aquifers.
The first issue has been addressed by the production of an independent Ground
Investigation Report which evaluates and confirms the underlying ground
condition at the wellsite using information gained from geotechnical site
investigation boreholes drilled in Q1 2018.
The second issue has been addressed through the proposed reconfiguration of the
wellsite to install a new high-density polyethylene (HDPE) impermeable membrane
above the existing GCL, with additional associated protection layers across the
entire wellsite. The specification of the HDPE impermeable membrane, associated
protection layers and thickness and suitability of the stone covering layer,
has been informed by the Ground Investigation Report, tested and validated in a
laboratory, and agreed between the membrane manufacturer and Egdon's consulting
civil and structural engineers.
The third issue has been addressed through an updated independent
Hydrogeological and Flood Risk Assessment (HRA), which includes the results of
samples tested from two deeper cored boreholes drilled in Q1 2018. The HRA
confirms the detail of the near surface geology and conclusively demonstrates
the presence of laterally continuous capping layers to the underlying aquifers.
Further detail of the Application can be found in the notes to editors below.
Once validated by North Lincolnshire Council, the Application will be reviewed
by the Planning Officers at NLC, considered by statutory consultees and will be
open for comment from interested parties. The period of consultation should be
13 weeks for an application of this nature.
Mark Abbott, Managing Director of Egdon Resources plc, said: "The submission of
this new planning application is the culmination of a significant amount of
detailed and thorough work by our team of specialist consultants and advisers.
The new proposed development has been informed by information from the site
investigation and deeper cored boreholes drilled during the first quarter of
2018 and has been designed to comprehensively address the key concerns which
resulted in the Inspector's dismissal of our planning appeals.
The proposed development incorporates high levels of embedded mitigation, such
as the new HDPE impermeable membrane system, to minimise the potential for any
environmental or other impacts from our operations. The effectiveness of this
mitigation will be verified by continuous monitoring of the nearby water and
groundwater.
We plan to set up a community liaison group and a community fund to ensure the
local community are kept fully informed and share in the benefits of the
Wressle development.
We hope that North Lincolnshire Council will recognise the positive changes
made to the proposed development when determining this planning application and
we remain available to address any remaining questions or concerns which may
arise during the consultation and determination process."
Notes to Editors:
The Wressle-1 Oil Field:
The Wressle-1 well was drilled in 2014 and tested in 2015. The Wressle-1 well
has flowed oil and gas from three separate reservoirs, the Ashover Grit, the
Wingfield Flags and the Penistone Flags. This totalled 710 barrels of oil
equivalent per day from all zones. In September 2016, a Competent Person's
Report made independent estimates of Reserves and Contingent and Prospective
oil and gas Resources for the Wressle discovery of 2.15 million stock tank
barrels classified as discovered (2P+2C). Further information can be found at
our Wressle Oil and Gas Discovery page http://www.egdon-resources.com/home/
project-sites/wressle/
The New Planning Application:
The new planning application (the Application) seeks permission for the
Proposed Development, which comprises:
"Retention of the Wressle-1 Wellsite and access track for the Production of
Hydrocarbons, together with an extension of the site by 0.12ha for the
installation of additional security facilities; site reconfiguration to
facilitate the installation of a new impermeable membrane, French drain and
surface water interceptor; construction of a bund, tanker loader plinth and
internal roadway system; installation of up to 2 additional groundwater
monitoring boreholes and deepening of 3 existing groundwater monitoring
boreholes; well operations; installation of production facilities and
equipment; installation of gas engine and electrical grid connection; oil and
gas production for a temporary period of 15 years; and restoration to arable
land at Lodge Farm, Clapp Gate, Appleby, Scunthorpe."
The planning application is accompanied by the following documents:
* Planning and Sustainability Statement;
* Planning Application Form;
* Oil and Gas Checklist;
* Site Plans and Design Drawings;
* Technical Assessments comprising:
* Air Quality Assessment;
* Archaeology and Heritage Impact Assessment;
* Civil and Structural Design Statement;
* Ecological Appraisal;
* Hydrogeological and Flood Risk Assessment;
* Landscape and Visual Appraisal;
* Lighting Assessment;
* Assessment of Environmental Noise Emissions; and
* Transport Statement.
Whilst the Inspector supported Egdon's position on many aspects of the previous
applications the Inspector identified the following as key issues in his
decision to dismiss the Company's appeals as set out in his decision letter of
4 January 2018:
a. The absence of a ground conditions survey report;
b. The absence of sufficient evidence on the adequacy of the
Geosynthetic Clay Liner (GCL) covering; and
c. Uncertainty with regards to the near surface geology and
specifically the presence of capping layers to the underlying aquifers.
Egdon believes that these issues have been fully addressed in the Application
as summarised in the RNS and as detailed further below.
* A number of geotechnical site investigation boreholes and two
deeper cored boreholes were drilled on the Wressle-1 wellsite during Q1 2018.
* The nature of the underlying ground condition at the wellsite has
been assessed and an independent Ground Investigation Report prepared which
details the existing ground conditions at the wellsite, confirming the
Company's view of the suitability of the site and satisfying the first of the
Inspectors key reasons for dismissal of the appeals.
* This Ground Investigation Report has been utilised by an
independent firm of consulting civil and structural engineers, to prepare a
Civil and Structural Design Statement. This document details the design
criteria, guidance and regulations applicable to the redesign and
reconfiguration of the wellsite as proposed in the Application.
* The proposed wellsite reconfiguration will result in the
installation of a new high-density polyethylene (HDPE) impermeable membrane and
additional associated protection layers across the entire wellsite. As part of
this, the existing site surface aggregate will be stripped and regraded, before
being re-laid on top of the new HDPE impermeable membrane system.
* The installation specification of the HDPE impermeable membrane,
associated protection layers and thickness and suitability of the stone
covering layer, has been tested and validated in a laboratory against the
maximum expected site loading, and agreed between the manufacturer and Egdon's
consulting civil and structural engineers to ensure the HDPE impermeable
membrane is protected throughout the life of the wellsite.
* Although on inspection it was found to be in effective condition,
the existing GCL membrane will remain in place but will no longer be relied
upon as tertiary containment, as it is being overlaid with the new HDPE
impermeable membrane system.
* A Construction Quality Assurance plan will be used to ensure the
installation of the lining system is robust and constructed to the highest
engineering standards.
* A poured reinforced concrete internal roadway will be constructed
to provide even greater weight distribution and protection above the HDPE
impermeable membrane in the most heavily trafficked area of the site.
* The installation of a new HDPE impermeable membrane, which has been
informed by the ground investigation report and designed and tested by Egdon's
consulting civil and structural engineers, in consultation with, and in
agreement with the manufacturer, along with other measures as detailed;
comprehensively addresses the Inspectors concerns in relation to point b above.
* In relation to point c., Egdon commissioned an independent
Hydrogeological and Flood Risk Assessment (HRA) to address the uncertainty
identified by the Inspector with regard to the near surface geology and
specifically the presence of capping layers to the underlying aquifers.
* The HRA defines a hydrogeological conceptual model (HCM) which has
utilized regional, local and wellsite specific data, including the drilling of
site investigation boreholes and laboratory testing for hydraulic conductivity
of core samples from the two deeper cored boreholes drilled in Q1 2018.
* These cores and tests provide conclusive evidence that demonstrates
the existence of a laterally continuous impermeable claystone capping layer
above the primary aquifer in the Lincolnshire Limestone Formation beneath the
wellsite and more widely.
* The HCM also demonstrates the presence of a capping layer to the
Cornbrash secondary aquifer beneath the wellsite.
* The HRA concludes that the assessed risks relating to all possible
hazards associated with the proposed development, range from 'Low' to 'None'.
The overall risk profile for the proposed development is a reflection of the
high level of embedded mitigation within the design of the wellsite
reconfiguration (as detailed above) and the construction of the existing
Wressle-1 well.
* The HRA confirms the detail of the near surface geology and
hydrogeology, supporting the previously presented hydrogeological model and
conclusively demonstrating the presence of a capping layer to the underlying
aquifers. This together with the conclusions of the risk assessment, in the
Company's view, fully addresses the final issue identified by the Inspector.
* It is also proposed to install up to two new groundwater monitoring
boreholes and to deepen three of the existing groundwater monitoring boreholes
to verify the effectiveness of the embedded site environmental protection
through ongoing monitoring.
Planning history:
On 11 January 2017, North Lincolnshire Council refused planning consent for the
original application for the development of the Wressle Oil Field at Lodge
Farm, Wressle, North Lincolnshire.
On 7 February 2017, Egdon announced that it would both appeal the decision of
11 January 2017 and in parallel submit a new Planning Application for the
Wressle development which would include even more detailed information to
address the specific concerns outlined by North Lincolnshire Council in their
refusal.
On 11 April 2017, Egdon submitted an appeal against North Lincolnshire
Council's decision to refuse planning consent.
On 28 April 2017, Egdon submitted a new application for the Wressle Development
including additional detailed information to address the specific concerns
raised by North Lincolnshire Council in its 11 January 2017 decision to refuse
the original application for the development of the Wressle Oil Field.
On 19 May 2017, Egdon announced the issue by the Environment Agency of the
variation to the Mining Waste Permit for the planned Wressle field development
and associated operations.
On 3 July 2017, the new planning application was also refused. The variation
of the existing planning for the site requesting a twelve month extension was
also refused at the same meeting.
During November 2017, a planning inquiry was held to consider the two appeals
for development approval and the appeal of the variation of the existing
planning for the site. On 5 January 2018, we announced that the Inspector had
rejected the appeals by Egdon against the two planning refusals by North
Lincolnshire County Council's Planning Committee. However, the Planning
Inspectorate did uphold Egdon's appeal against the decision to refuse the
application to retain the existing planning for the well site, which is was
retained until the 28 April 2018.
A new application to extend the current planning consent was submitted on 13
April 2018 and is awaiting determination.
The information communicated in this announcement is inside information for the
purposes of Article 7 of Regulation 596/2014.
* * ENDS * *
For further information please visit www.europaoil.com or contact:
Hugh Mackay Europa + 44 (0) 20 7224
3770
Phil Greenhalgh Europa + 44 (0) 20 7224
3770
Matt Goode finnCap Ltd + 44 (0) 20 7220
0500
Simon Hicks finnCap Ltd + 44 (0) 20 7220
0500
Frank Buhagiar St Brides Partners Ltd + 44 (0) 20 7236
1177
Susie Geliher St Brides Partners Ltd + 44 (0) 20 7236
1177
Notes
Europa Oil & Gas (Holdings) plc has a diversified portfolio of multi-stage
hydrocarbon assets that includes production, exploration and development
interests, in countries that are politically stable, have transparent licensing
processes, and offer attractive terms. In 2017 Europa produced 113 boepd. Its
highly prospective exploration projects include the Wressle development in the
UK (targeting production start-up in 2018 at 500 bopd gross) and six licences
offshore Ireland with the potential to host gross mean un-risked prospective
resources of 6.2 billion barrels oil equivalent and 2.5 tcf undiscovered GIIP
across all six licences.
Qualified Person Review
This release has been reviewed by Hugh Mackay, Chief Executive of Europa, who
is a petroleum geologist with 30 years' experience in petroleum exploration and
a member of the Petroleum Exploration Society of Great Britain, American
Association of Petroleum Geologists and Fellow of the Geological Society. Mr
Mackay has consented to the inclusion of the technical information in this
release in the form and context in which it appears.
END
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