Egdon Resources plc (AIM:EDR) is pleased to announce the issue by the Environment Agency of the environmental permits required for the planned operated Biscathorpe-2 exploration well on PEDL253 in Lincolnshire. The prospect is located between Lincoln and Louth on the southern margin of the Humber Basin on trend with and to the west of the producing Keddington oil field (14 kilometres, Egdon operated) and the Saltfleetby gas field (20 kilometres).
The Biscathorpe-2 well will target a down-dip area of the structure tested by the crestal Biscathorpe-1 well in 1987 by BP which found oil in a 1.2 metres thick sandstone of Westphalian (Carboniferous) age. The sandstone is expected to thicken to the north and east from the original well and the structure has been mapped using reprocessed 3D seismic data. The Mean Gross Prospective Resources at Biscathorpe are estimated by Egdon to be c. 14 million barrels of oil (”mmbo”) and the well has been assessed by the Company as having a 40% chance of success.
Current Licence interests in PEDL253 are:
Egdon Resources U.K. Limited (Operator) 52.80% (45.60% share of well cost)
Montrose Industries Ltd. 35.20% (30.40% share of well cost)
Union Jack Oil Plc 12.00% (24.00% share of well cost)
The Company expects to commence operations including site construction later in 2017. The well has a planned depth of 2,100 metres.
Mark Abbott, Managing Director of Egdon Resources plc, said:
“After a long and extremely thorough review of our proposals by the Environment Agency, we are pleased to receive the environmental permits for the proposed Biscathorpe-2 exploration well. This validates our position that the planned operations and procedures will prevent, mitigate and minimise environmental impacts. Egdon takes its safety, environmental and social obligations very seriously and is committed to maintaining the highest standards.
We now look forward to drilling this significant conventional oil prospect. If a stratigraphic element to overall trap is proven, the potential resources could be considerably larger than the mean case of 14.0 mmbo.”