Egdon Resources plc (AIM:EDR) is pleased to announce that it has been notified by Leicestershire County Council that Planning Consent has been granted for the drilling of an exploratory borehole on the Burton on the Wolds Prospect in UK Onshore Petroleum Exploration and Production Licence PEDL201, located on the southern margin of the Widmerpool Gulf geological basin.
The Burton on the Wolds Prospect has been mapped on proprietary 2D seismic data which was acquired by Egdon in May 2011. Evaluation has highlighted a conventional oil prospect with targets at two distinct Carboniferous stratigraphic levels. The shallower target, the Rempstone Sandstone, is productive at the nearby Rempstone oil field. A seismic anomaly, possibly indicative of a carbonate reef, underlies the Rempstone Sandstone and provides a deeper secondary target. The mean combined Prospective Resources for the two target objectives, as calculated by Egdon are estimated to be 3.8 million barrels of oil.
The planned vertical well will be relatively shallow with a drilled depth of around 1000 metres. It has been designed to intersect both targets in a structurally favourable position near the crest of the Burton on the Wolds structure.
The interests in Licence PEDL201 are:
|Egdon Resources U.K. Limited||32.50% (operator)|
|Celtique Energie Petroleum Limited||32.50%|
|Terrain Energy Limited||12.50%|
|Corfe Energy Limited||12.50%|
|Union Jack Oil plc||10.00%|
As a result of a series of farm-outs announced on 20 February 2012 and 19 February 2013, Egdon’s net share of the cost of the Burton on the Wolds-1 well will be 15%.
Commenting on the approval Mark Abbott, Managing Director of Egdon said:
“We are pleased that Leicestershire County Council has approved our application for the drilling of the Burton on the Wolds-1 exploration well and we can now look forward to the commencement of drilling operations later in 2013. The prospect combines a lower risk reservoir target offsetting nearby production with a higher risk, higher potential play which is at present untested in the basin.”