Egdon Resources plc is pleased to note the announcement made this morning by IGas Energy plc (“IGas”) of its First Half 2019 Results and associated presentation which provides further details of results from the analysis of whole core from the Springs Road-1 (“SR  01”) well on licence PEDL140, in which Egdon holds a 14.5% interest.

The IGas release states;

“ We mobilised the equipment to our Springs Road development in North Nottinghamshire in early January 2019 and spudded the well on 22 January 2019.  In mid-February 2019, we encountered shales on prognosis, at c.2,200 metres depth and drilled through a significant hydrocarbon bearing shale sequence, including the upper and lower Bowland Shale. 

The well sought to assess three target zones: the Bowland Shale; the Millstone Grit and the Arundian Shale. All three targets were encountered, with 429 metres of hydrocarbon bearing shales encountered within the primary target, the Bowland Shale.

IGas acquired 147 metres of core within the Bowland Shale, the first extensive core sample from this basin, which has subsequently been analysed by Stratum Reservoir (formerly Weatherford Labs) in their laboratories in both the UK and the USA.

The results from the core analysis are extremely positive and confirm that a significant hydrocarbon resource is present in the Gainsborough Trough. Following further detailed analysis, the core results are as follows:

*volumetric estimates based on SR-01 data only, no regional data has been incorporated and as such does not account for thickness variations and reservoir heterogeneity within the basin. Secondary (Millstone Grit) and tertiary (Arundian shale) targets excluded.”

A presentation including slides on Springs Road -1 core data analysis will be available later today at IGas’ website http://www.igasplc.com/

Commenting on these results, Mark Abbott, Managing Director of Egdon Resources plc, said:

“We continue to be encouraged by the results from Springs Road-1, particularly the combined Bowland shale gas in place of 640 bcf/square mile (“the resource density”).  This is more than three times Egdon’s previous external estimates of the mean resource density for the entire Bowland Shale section in PEDL139/140 as reported by ERCE in 2014.

The results from this extensive modern dataset demonstrate that the Bowland Shale of the Gainsborough Trough, where Egdon currently holds 82,000 net acres (128 square miles), compares favourably with some of the best US commercial shale plays and is potentially world class.  

We look forward to sharing further data on the well as it become available, particularly on the secondary target, the tight gas sands of the Millstone Grit”

Egdon Resources plc notes the announcement made this morning by UK Oil & Gas PLC (“UKOG”) concerning a two year extension of PEDL143 in the Weald Basin where Egdon has an 18.4% interest:

The UKOG release stated;

“UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce that the Oil and Gas Authority (“OGA”) has granted a two-year extension to the initial term of the Company’s operated PEDL143 licence (UKOG 67.5%, northern Weald, “A24” prospect). The initial term will now end on 30 September 2022.

PEDL143 “A24” Prospect

The licence lies immediately to the west of the Company’s Horse Hill licences (UKOG 85.635%) and contains the significant “A24” Portland and Kimmeridge oil prospect, a direct geological look-alike to the Company’s Horse Hill oil field, situated on-trend some 8km to the east. Several smaller prospects of similar size to the nearby Brockham Portland oil field have also been identified. Multiple potential new drilling sites outside the nearby Area of Outstanding Natural Beauty are under evaluation and drilling is now scheduled to follow directly after the completion of the Company’s 9-well 2019/2020 drilling programme, subject to the grant of necessary regulatory approvals.”

Egdon Resources plc (AIM: EDR) notes the movement in its share price and the speculation surrounding the Wressle Oil Field.  As notified on 29 April 2019, the planning inquiry to hear the Company’s appeal against the refusal of planning consent for the development of the Wressle Oil Field by North Lincolnshire Council’s Planning Committee is scheduled to commence on 5 November 2019. 

The Company has been advised that following a closed meeting held by North Lincolnshire Council (“NLC”) on 17 July 2019, a decision has been made that NLC will not be presenting evidence at the Public Inquiry and will withdraw its case in respect of this appeal subject to the agreement of acceptable planning conditions.

While the Company considers this to be a very positive development, we still need to obtain planning permission via appeal and the Company remains focused on presenting its case for the Wressle development to the independent professional Planning Inspector in November.

TR1 – EGDON RESOURCES PLC – 17 07 2019

Egdon Resources plc (AIM:EDR) is pleased to provide a positive update in respect of the Biscathorpe-2 exploration well drilled in Petroleum Exploration and Development Licence PEDL253, located in Lincolnshire, where Egdon holds a 35.8% interest.  

The Biscathorpe-2 well is located within the proven hydrocarbon fairway of the Humber Basin, on trend with the Saltfleetby gasfield and the Keddington oilfield which produces oil from a Carboniferous Westphalian aged sandstone reservoir (“Westphalian”) and which was the principal target in the Biscathorpe-2 well.  The initial well results were reported on 20 February 2019. During drilling elevated gas readings were recorded from the Westphalian and below this over the total 157 metre Dinantian Limestone interval (“Dinantian”) along with the presence of oil shows (pale white blue cut fluorescence) in both Westphalian and Dinantian cuttings samples.  The Biscathorpe-2 well was suspended to allow the option for a future side-track to be made following the re-processing and re-mapping of up to 85 square kilometres of existing 3D seismic data. 

Since reporting the initial well results, further detailed technical analyses of the data from the Biscathorpe-2 well have been undertaken, including an updated petrophysical evaluation by both Egdon and Union Jack’s petrophysical consultants which focussed specifically on the Dinantian.  These petrophysical analyses indicated hydrocarbon saturations of greater than 50% within the upper parts of the Dinantian.

Union Jack, Montrose Industries Limited, and Egdon Resources plc, also appointed independent geotechnical consultants, Applied Petroleum Technology (UK) Limited (“APT”), to perform a detailed geochemical analysis of drill cutting samples taken from 20 intervals in the Biscathorpe-2 well, comprising five from the Westphalian and 15 from the Dinantian.  The objective of the APT analysis was to provide geochemical evidence for the presence of live hydrocarbons together with an estimate of the likely oil quality (the “APT Report”). 

The APT Report has confirmed the occurrence of hydrocarbons in the Westphalian and Dinantian cutting samples analysed from the Biscathorpe-2 well.  The APT Report also confirmed that the data supports the existence of a significant column of good quality oil ( high API gravity), within the Dinantian, validated by the presence of a full suite of gases ranging from methane to pentane (C1 to C5 and nC5) recorded during drilling, all indicative of a working petroleum system in close proximity to the Biscathorpe-2 well.

A sample of oil from the nearby producing Keddington oilfield to the east of PEDL253, was analysed as a benchmark for comparison with the hydrocarbons extracted by APT from the Biscathorpe-2 cutting samples. 

The key results contained in the APT Report are summarised below:

• Good quality hydrocarbon extracts were obtained from the Westphalian and Dinantian cuttings samples
• All hydrocarbons extracted appear to be non-biodegraded
• The hydrocarbons extracted are comparable to those extracted from a known oil-bearing Westphalian interval (Keddington oilfield)
• APT confirmed the likely presence of a live oil column in the top of the Dinantian interval from approximately 1,980 metres to 2,015 metres (35 metres), with likely residual oil below
• Data evaluated at the base of the analysed section, and wellsite gas readings, are also suggestive of possible additional hydrocarbon pay below 2,133 metres
• API gravity results in the Biscathorpe-2 well intervals were as follows:

The results of the APT Report together with re-processed 3D seismic data will be integrated to inform the direction of any potential future side-track of the Biscathorpe-2 well that would target the Westphalian and Dinantian.

Commenting on these positive results Mark Abbott, Managing Director of Egdon, said:

“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.

“We look forward to updating shareholders further once the results of the 3D reprocessing are finalised.”