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. 

In March 2020 we announced that we are highly encouraged by the post-well evaluation of the Biscathorpe project area which has now benefited from an integrated assessment of the 2019 well data and reprocessed 3D seismic data. This work has concluded that a potentially material and commercially viable hydrocarbon resource remains to be tested.

Having retained the wellsite, the JV has maintained its optionality to pursue a cost effective side-track to test the resource potential of not only the Basal Westphalian Sandstone play but also to appraise the oil column demonstrated in the deeper Dinantian Carbonate reservoir.

I look forward to being able to update all stakeholders as we progress our plans for this potentially significant oil accumulation

In June 2020 we announced that a settlement had been reached with Humber Oil & Gas Limited on PEDL253 Biscathorpe. The joint parties to PEDL253 have therefore resolved the dispute arising under the JOA and look forward to co-operating in the future in the development of the licence.