Biscathorpe exploratory conventional oil well site

In March 2015 Egdon Resources U.K. Ltd, as operator of the licence area PEDL253, received temporary planning permission from Lincolnshire County Council to drill a conventional exploratory oil well on farmland to the west of the hamlet of Biscathorpe, approximately nine kilometres to the west of Louth in Lincolnshire.

The proposals will involve conventional drilling for oil and for clarity the operations at the site will not involve the process of hydraulic “fracking” for shale gas. This area of Lincolnshire does not have the specific rock-formation types that contain shale gas.

The proposed site replaces a previous site approximately one kilometre to the east for which we withdrew a temporary planning application in 2013 after listening to feedback from local people.

In July 2017 Egdon announced the issue by the Environment Agency of the environmental permits to enable the drilling and possible subsequent testing operations at the Biscathorpe site.

In May 2018 Egdon received an extension of temporary planning permission from Lincolnshire County Council until December 2020.

LCC was then challenged by local activists as to the legality of their planning decision but this was dismissed in October 2018

During August 2018 we updated the tenders for all materials and services including the rig with completion of the site construction commencing during October 2018.

Drilling operations commenced at Biscathorpe on 7 January 2019 and completed  20 February 2019. Preliminary analysis of the Biscathorpe-2 well (38.5% operated interest) indicates that the Basal Westphalian Sandstone target was encountered high to prognosis and was poorly developed at the Biscathorpe-2 location. The Biscathorpe “play” has therefore not been properly tested by the well and potential remains elsewhere on the prospect.

The open-hole section has now been sealed with cement plugs and the well suspended to retain the option for a potential future side-track which would require additional consents including planning permission. This will be considered once the new well data is integrated into an updated subsurface model. The drilling rig and ancillary equipment has been demobilised from the site.

On 15 July 2019 we announced that the results of the revised petrophysical analysis and the APT Report have upgraded the Biscathorpe-2 well result, confirming 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.

The primary target reservoir at Biscathorpe, the Basal Westphalian sandstone, was likely absent at the Biscathorpe-2 location and remains untested by the well. Further technical work is planned, including the reprocessing of the existing 3D seismic data, prior to deciding the next steps for the project which could include a side-track of the suspended Biscathorpe-2 well.