Producing Assets - establishing cash flow

A key focus for the business has been to target investment in near term production and revenue generating projects. Egdon currently has production from three UK onshore oil fields as detailed below.

Keddington (PEDL005(remainder) – Egdon 75% operator)
The Keddington oil field, located in Lincolnshire, produces oil and associated gas from two sandstone intervals of Carboniferous age at a depth of around 2,200 metres. There are two producing wells on the field; Keddington-1z and Keddington-2y. Year on Year net Egdon production increased in 2009 by 24% to 13,476 barrels. We remain encouraged by the upside at Keddington and are planning to drill a sidetrack of the Keddington-2y well to increase production and revenues. Reprocessing of the existing 3D seismic data has been completed and is currently being interpreted to determine the final bottom hole location. It is hoped that a successful sidetrack well could boost production to 150–200 bopd. Planning is in place and it is hoped to drill the sidetrack early in 2010.

Avington (PEDL070 – Egdon 36.67% non operated)
The Avington oil field, located in Hampshire, produces oil from the Middle Jurassic Great Oolite reservoir at a depth of around 1,600 metres. During 2008 the operator obtained all required consents and the field was placed on production on 23 January 2009. There are two horizontal wells on the field; Avington-2z and Avington-3z. Production to date has been from the Avington-3z well with Net Egdon production during 2009 of 9,998 barrels (2008: 12,564barrels). Egdon increased its interest in Avington from 20% to 36.67% through the acquisition of YCI Resources Limited. Production facilities were upgraded during August and September 2009 and it is intended to add production from the Avington-2z well in due course.

Kirklington (PEDL203 – Egdon 75%and operator)
The Kirklington oil field, located in Nottinghamshire, has two oil bearing zone units; the Sub-Alton Crawshaw and the Chatsworth Grit reservoirs at around 650 metres depth.  The Kirklington oil field had been shut-in since 2004 prior to restarting test production on 28 July 2009 from the Chatsworth Grit reservoir interval. A sidetrack was drilled in February 2010.  The sidetrack encounterd the Chatsworth Grit below the interpreted field oil water contact.  A further sidetrack was drilled 25 metres from the Kirklington-2 well and found the reservoir 3.5 metres deeper and 4 metres thinner.  This well has been completed for production.  The Kirklington field is more complex than  thought and willbe evaluated to determine if further drilling activity and investment is warranted.