Egdon Resources plc (AIM:EDR) announces the completion of drilling operations at the Laughton-1 conventional exploration well in UK Onshore Licence PEDL209 located in Lincolnshire.
The Laughton-1 well was spudded on 12 February and has reached a total depth of 1,700m in line with the pre-drill prognosis. During drilling, the well recorded hydrocarbon shows from a number of potential reservoir sequences including the Kilburn Sandstone, Chatsworth Grit, Ashover Grit and Kinderscout Grit. The Silkstone Rock primary objective was poorly developed in the well. Analysis of the wireline log data indicates that the hydrocarbon saturations associated with the shows are not sufficiently encouraging to warrant testing.
The well is currently being plugged before the drilling rig is released from contract and in due course the wellsite will be fully restored to its original condition as agricultural land.
Following the drilling of Laughton-1 the licence interests in the Laughton Prospect and the two other conventional prospects in PEDL209 are
|Egdon Resources U.K. Limited||50%|
|Blackland Park Exploration Limited||28%|
|Stelinmatvic Industries Limited||12%|
|Union Jack Oil plc||10%|
Commenting on the results at Laughton-1, Mark Abbott, Managing Director of Egdon said:
“The drilling of the Laughton-1 conventional exploration well fulfils Egdon’s farm-in obligation and so earns our 50% operated interest in PEDL209. The well was drilled within budget and without incident. This completes the work commitment for the licence’s first term and allows it to proceed into its second term during which the remaining conventional and unconventional hydrocarbon potential will be further evaluated.”
In January 2016 Egdon announced that Union Jack will earn a 10% interest in the Laughton-1 exploration well and two other conventional prospects in PEDL209, in return for paying 16.67% of the cost of the well.
In January 2014 a Farm-in Option Agreement was reached with Total in respect of PEDL209, whereby Total has an option, to earn a 50% interest in the licence by paying for an exploration programme of £13.47 million. Egdon received a cash payment of £0.92 million and retained the exploration rights at Laughton and two other prospects, all of which are purely conventional and are excluded from the option.
Following exercise of the option the licence interests in the unconventional resources would be:
|Egdon Resources U.K. Limited||30%|
|Total E&P UK Limited||50%|
|Blackland Park Exploration Limited||14%|
|Stelinmatvic Industries Limited||6%|