TIDMEDR
RNS Number : 2225O
Egdon Resources PLC
01 October 2019
1 October 2019
EGDON RESOURCES PLC
("Egdon" or "the Company")
Operations Update
Egdon Resources plc (AIM:EDR) is pleased to provide an update on
production and operations following the end of the Company's
2018-2019 financial ("FY2019") on 31 July 2019. The Company's
preliminary results are scheduled to be announced on 19 November
2019.
Production
Egdon's net production from the Ceres gas field and the
Keddington and Fiskerton Airfield oil fields during FY2019 period
was 66,364 barrels of oil equivalent ("boe"), at an average of 182
boe per day ("boepd") (FY2018 12,691 boe, 70 boepd), in line with
previously stated guidance. Production recommenced from the Ceres
well in late October 2018 following installation of a new flow
meter driving a significant increase in production over the
previous financial year.
Egdon will provide production guidance for the financial year
ending 31 July 2020 ("FY2020") with the preliminary results, but
initial guidance for the first half of the financial year is c.
170-180 boepd with Mercury gas backout volumes receivable by Ceres
partners ceasing at the end of December 2019.
Operations
Licence extensions
Earlier this year Egdon applied for and received a number of
onshore licence extensions from the Oil and Gas Authority as
follows:
-- Continuation of the Second Term of PEDL180 and PEDL182 to August 2021.
-- Initial Terms were extended for PEDL143 (to September 2022),
PEDL306 (to July 2024), PEDL334 (to July 2024).
-- Retention Area licence durations were extended for PEDL191
(to June 2023), PEDL201 (to June 2024) PEDL202 (to June 2023) and
PEDL209 (to June 2023).
-- PEDL181 was converted to 14th Round terms and passed into the production period.
Springs Road-1
On 12 September 2019, Egdon announced the results of the core
analysis with combined Bowland shale gas in place of 640 bcf/square
mile ("the resource density"). This is more than three times
Egdon's previous external estimates of the mean resource density
for the entire Bowland Shale section in PEDL139/140 as reported by
ERCE in 2014.
The results from this extensive modern dataset demonstrate that
the Bowland Shale of the Gainsborough Trough, where Egdon currently
holds 82,000 net acres (128 square miles), compares favourably with
some of the best US commercial shale plays and is potentially world
class.
The company looks forward to sharing further data on the well as
it become available, particularly on the secondary target, the
tight gas sands of the Millstone Grit.
Biscathorpe
Further detailed technical analysis of the data from the
Biscathorpe-2 well reported in July 2019 has upgraded the well
results. The results of a revised petrophysical analysis and
detailed geochemical analysis of drill cutting samples undertaken
by Applied Petroleum Technology (UK) Limited ("APT") confirmed the
likely presence of a 35 metre column, of good quality oil, within
the Dinantian interval. This, along with the elevated gas readings
and oil shows over an extended interval in the well, are indicative
of proximity to an effective petroleum system and validate the
potential that exists within the PEDL253 licence area.
Subsequent to our last update substantial progress has been
made, including the reprocessing of 85 square kilometres of the
existing 3D seismic data. The results of the interpretation of
these data will be reported on in due course and will inform the
next steps for the project which could include a side track of the
suspended Biscathorpe-2 well that would target reservoirs in the
Westphalian and Dinantian. Any future drilling would require
additional consents including planning permission.
Wressle
The Wressle oil development has the potential to add 150 bopd to
the Company's production. Egdon's extensively revised development
proposals for the Wressle oil discovery were refused planning
consent in November 2018, with that refusal appealed in February
2019.
The public inquiry in respect of Egdon's appeal against this
refusal will be held between 5 and 13 November 2019. Egdon's case
will be presented by a QC supported by expert witnesses. The timing
of the public inquiry has resulted in the company delaying its
preliminary results announcement to 19 November 2019.
As advised in July 2019, North Lincolnshire Council will no
longer present evidence at the public inquiry having withdrawn its
case in respect of this appeal following agreement of acceptable
planning conditions during August 2019. A decision is expected
around the turn of the year. Should approval be forthcoming Egdon
will need to discharge all conditions prior to commencing
operations and would hope to have first production some six months
after a decision.
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 Joint Broker - Cantor Fitzgerald
Europe
David Porter/ Rick Thompson (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)
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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