Results of Annual General Meeting
The Directors of Egdon Resources plc are pleased to announce that at the Annual General Meeting held at the offices of Norton Rose Fulbright on 12 December 2014, all resolutions put before shareholders at the meeting were duly passed unanimously.Details of the voting and proxies received can be viewed hereAt the meeting, Managing Director Mark Abbott presented a review of the business.The presentation can be downloaded here
Wressle-1 Commencement of Extended Well Test
Egdon Resources plc (AIM:EDR) is pleased to announce the commencement of an Extended Well Test (“EWT”) at the Wressle-1 oil and gas discovery in licence PEDL180, located to the east of Scunthorpe, where Egdon operates with a 25% interest.During initial testing, the Wressle-1 well produced oil and gas from three discrete reservoir intervals, the Ashover Grit, the Wingfield Flags, and the Penistone Flags as previously reported. At the end of those test operations, a completion was installed in the well to cater for a subsequent pumped EWT over the oil productive zones in the Ashover Grit and the Penistone Flags.Surface facilities and other equipment required for the EWT including a beam pump (“nodding donkey”), down-hole pump, and pump rods have now been installed.The EWT will focus first on the Ashover Grit , which will be tested for up to 28 days to determine production rates under pumped conditions. During February this zone flowed 80 barrels of oil per day (“bopd”) and 47 thousand cubic feet of gas per day during a 16 hour main flow period. The oil is of good quality with a gravity of 39-40° API.The Ashover Grit will then be isolated and the oil leg in the Penistone Flags tested for up to 28 days, again to determine production rates under pumped conditionsWe will inform shareholders of progress at key points during the EWT, with the first update anticipated to be the results of the pumped testing of of the Ashover Grit.Commenting on the commencement of the EWT at Wressle, Mark Abbott Managing Director of Egdon Resources said;“The earlier testing of the Wressle-1 discovery in Q1 2015 was very successful with combined production rates of 710 barrels of oil equivalent per day from the four zones tested.We now look forward to the results of this EWT programme which will provide further valuable information on the Ashover Grit and Penistone Flags reservoirs and enable us to determine commerciality and optimise potential field development and monetisation options for the Wressle discovery.”
Interim Results for the Six Months Ended 31 January 2015
Egdon Resources plc (AIM:EDR), the UK-based exploration and production company with a primary focus on the hydrocarbon-producing basins of the onshore UK, today announces its unaudited interim results for the six months ended 31 January 2015.Overview and Highlights Operational and Corporate Highlights
- Production of 27,232 barrels of oil equivalent (“boe”) equating to 148 barrels of oil equivalent per day (“boepd”) (H1 2014: 35,773 boe; 194 boepd)
- Revised full year production guidance of 180 boepd
- Successful drilling and testing of the Wressle-1 oil and gas discovery in Lincolnshire which produced hydrocarbons from four test intervals
- Strong project pipeline developed including planning permission secured at North Kelsey and Biscathorpe
- Ongoing development of licence portfolio with conventional and unconventional resource potential via the acquisition of Yorkshire Exploration Limited (PEDL068) and exercise of the option with Scottish Power to farm in to PL161 and PL162
- Disposal of interests in two non-core licences in Southern England, PEDL126 and P.1916
- Submission of applications in the 14th UK Onshore Licensing Round
Financial Highlights
- Oil and gas revenues during the period of £0.91 million (H1 2014: £1.41 million)
- Loss for the period of £1.74 million including losses on disposals/farm-outs and impairments in relation to Waddock Cross, Burton on the Wolds and Kiln Lane (H1 2014: profit of £0.83 million including gains on a farm-out).
- Net current assets as at 31 January 2015 of £9.15 million (H1 2014: £2.04 million) and cash at bank as at 31 January 2015 of £6.51 million (H1 2014: £1.17 million)
- Strong balance sheet to deliver on work programme and strategy
Commenting on the results, Philip Stephens, Chairman of Egdon said: “The Company has continued to make good progress on implementing its strategy against a backdrop of reduced oil prices. The Wressle oil and gas discovery has been successfully drilled and tested at rates exceeding 700 boepd combined from four intervals. We are now working towards the early development of this discovery and expect Wressle to add to our existing production and revenues. We have continued the development of our Northern England unconventional resource exploration portfolio, with the exercise of our option on PL161 and PL162 and ongoing detailed assessment of the acreage acquired from Alkane Energy. We have seen a further high value farm-out deal between IGas and INEOS in recent weeks and Egdon continues to review the best timing to introduce a suitable funding partner into our high quality unconventional resource acreage. We anticipate undertaking further drilling for conventional resources in the coming period on the back of successful planning applications, and, subject to receipt of all necessary consents, participation in the first exploration well for unconventional resources in the Gainsborough Trough. Our strong balance sheet leaves us well positioned to enable us to deliver on our forthcoming work programme and strategy.”View or Download Interim Results Press Release
Notification of Results
Egdon Resources plc (AIM:EDR) announces that its Interim Results for the six months ended 31 January 2015 will be released on Tuesday, 21 April 2015.
An analyst briefing will be held at 9.30am on 21 April 2015 at the offices of Buchanan, 107 Cheapside, London, EC2V 6DN.
Update on Wressle-1 Well Testing - Results of Second Penistone Flags Flow Test and Forward Programme
Egdon Resources plc (AIM:EDR) is pleased to announce the results of the second Penistone Flags flow test at the Wressle-1 oil and gas discovery in licence PEDL180 located to the East of Scunthorpe, where Egdon operates with a 25% interest.Zone 3a in the Penistone Flags was perforated over a 7.5 metre interval and has produced good quality oil with a gravity of 33o API. A total of 98.5 barrels of oil were recovered during the test (of which flow induced by swabbing operations produced 34.3 barrels of oil). This equates to approximately 77 barrels of oil per day (bopd).To date, the Wressle-1 well has flowed oil and gas from three separate reservoirs, the Ashover Grit, the Wingfield Flags and the Penistone Flags. The flow test result from Zone 3a has confirmed the presence of an oil column below the gas leg in Zone 3 of the Penistone Flags.The downhole pressure and oil sample data from all tests will now be interpreted and integrated into an updated field model to inform future development planning. The next steps in evaluating the discovery will be to undertake a pumped extended well test (EWT) of the Ashover Grit and Penistone Flags oil intervals to quantify the production levels that could be attained during production.Commenting on the test results and the planned forward programme at Wressle, Mark Abbott Managing Director of Egdon Resources said;“The results from Wressle continue to be very positive. The latest test has confirmed the presence of an oil column below the gas zone in the Penistone Flags, albeit in tighter sandstones. To date the well has successfully flowed hydrocarbons from four discrete intervals, with the Penistone Flags delivering a facilities restrictedgas flowrate of 1.7 mmcfd, plus an aggregate 89 bopd; free-flowing rates of up to 182 bopd and 0.46 mmcfd from the Wingfield Flags and 80 bopd from the Ashover Grit. This totals 710 barrels of oil equivalent per day from all zones.We are now planning a pumped EWT to validate the optimised production potential that could be obtained from the Wressle discovery. We will now focus on integration and interpretation of the engineering and geotechnical data that will provide the information needed to quantify the resource volumes and optimise the field development and monetisation options. The EWT is planned to commence in mid May with operations expected to continue for up to two months.”
Completion of drilling operations at the Kiln Lane-1 Exploration Well on PEDL181
Completion of drilling operations at the Kiln Lane-1 Exploration Well on PEDL181Egdon Resources plc (LSE: EDR) notes that Europa Oil and Gas plc ("Europa") has today announced the completion of drilling operations at the Kiln Lane-1 Exploration Well on PEDL181 where Egdon holds a 25.0 per cent interest.Europa’s RNS contained the following information:“Europa Oil & Gas (Holdings) plc, the AIM quoted oil and gas company with a combination of producing and exploration assets in Europe, announces the completion of drilling operations at the Kiln Lane-1 conventional exploration well (‘Kiln Lane’ or ‘the Well’) on Licence PEDL 181 in Northeast Lincolnshire. The Well spudded on 23 February 2015 and reached a total depth (‘TD’) of 2,291 metres on 19 March. Sandstones in the Westphalian and Namurian intervals were penetrated in line with the pre-drill geological model and significant oil and gas shows were observed during drilling operations. However, wireline logging and subsequent petrophysical analysis indicates that the sandstones encountered are water wet. The Well will therefore be plugged and abandoned and the site restored to agricultural use.Europa is operator of and has a 50% working interest in PEDL 181, which covers an area of over 540 km2 in the East Midlands Petroleum Province. Egdon Resources and Celtique Energie Petroleum Ltd each have a 25% interest in the Licence. Europa and its partners will conduct a detailed post-drill technical review of all relevant well and seismic data to determine the way forward with this large exploration licence.Europa’s CEO, Hugh Mackay said, “While we are disappointed with the outcome, Kiln Lane was drilled on schedule, on budget and safely. This is testament to the performance of both our own technical team and the engineering crew on the ground. Kiln Lane was the first well to be drilled on this large licence where multiple leads have been identified. The presence of hydrocarbon shows is encouraging and the quality of data recovered will enable clear decision making going forwards. Over the coming weeks and months more technical work will be conducted on all the data and geological samples recovered from the well as we refine our hydrocarbon system model and plan our next steps for the Licence.”
Planning Permission granted for Biscathorpe-2 Exploration Well
Egdon Resources plc (AIM:EDR) is pleased to advise that at today's Planning and Regulation Committee Meeting of Lincolnshire County Council, planning consent was granted for the drilling and any subsequent testing of the Biscathorpe-2 exploration well in Lincolnshire licence PEDL253.
The Biscathorpe Prospect is located on farmland to the west of the hamlet of Biscathorpe, approximately 15 kilometres to the west of the Keddington oil field and approximately 36 kilometres to the south-east of the Wressle-1 discovery currently being tested by Egdon in PEDL180.
The Biscathorpe Prospect is a large anticlinal structure mapped on reprocessed 3D seismic data. Oil was discovered but not tested in a thin Basal Westphalian/Namurian Sandstone unit in the Biscathorpe-1 well drilled by BP in 1987 on the crest of the structure. The sand unit is predicted to thicken away from the crest of the structure and there is also potential for stratigraphic trapping in the west which if present could increase the expected total prospective reserves from an Egdon assessed Best Estimate case of 14 mmbls up to a High case of 41 mmbls. The same sand unit is the producing reservoir in the Egdon operated Keddington oil field.
We will review the planning conditions and advise in due course on the final timing of the well.
For clarity, operations at this site will not - either now or in the future - involve the process of hydraulic 'fracking' for shale gas.
The interests in the Biscathorpe-2 well are:
Egdon Resources U.K. Limited 54% (Operator)
Montrose Industries Limited 36%
Union Jack Oil plc 10%
Under the terms of a farm-in agreement, Egdon will be carried by Union Jack plc for 6% of the Biscathorpe-2 well costs making its paying interest 48%.
Commenting on the planning decision Mark Abbott, Managing Director of Egdon said;
"We are delighted to receive planning consent for the drilling of the Biscathorpe-2 exploration well. The well will expose Egdon to significant resource potential and we will now work through the various planning conditions to be in a position to drill the Biscathorpe-2 well later in 2015. During the current challenging low oil price environment for our industry, the low capital, development and operating costs of onshore UK operations means that prospects like Biscathorpe remain commercially attractive.
We recognise the sensitivity of the area in which we will be operating and will, as always endeavour to ensure our operations are undertaken in such a way as to minimise our impact on the environment and without any disruption to our neighbours."
Update on Wressle-1 Well Testing - Results of Penistone Flags Flow Test and Forward Programme
Egdon Resources plc (AIM:EDR) is pleased to provide a further update on the ongoing well test operations at the Wressle-1 oil and gas discovery in licence PEDL180 located to the East of Scunthorpe, where Egdon operates with a 25% interest.Test operations have now been completed on the first set of perforations in Penistone Flags reservoir (“the Penistone”), the last of three hydrocarbon bearing zones identified in the well.The Penistone test produced gas at restricted flowrates of up to 1.7 million cubic feet of gas per day (“mmcfd”) with associated oil of up to 12 barrels of oil per day (“bopd”) and no free water from a 9 metre perforated zone at the top of the formation. Gas flow rates were constrained by the equipment and flaring limits imposed by the environmental permit. The gas and oil are of good quality with the oil having a gravity of 35o API. The downhole pressure data recorded during the testing will now be analysed to estimate the gas flow rates that could be achieved under production, unconstrained by the flare and permit restrictions.A further test will now be undertaken to evaluate the gas-oil and oil-water contacts in the Penistone by perforating the formation deeper in the section. Following this it is intended to isolate the Penistone and Wingfield Flags perforations to enable a longer term pumped production test of the Ashover Grit to be undertaken to further “clean-up” the formation and determine the potential pumped production rate for this formation. All of the data gathered from the test operations will be integrated into a full evaluation of the Wressle discovery to enable an updated resource assessment and to inform the options for field development. We will provide shareholders with updates as work on monetising Wressle progresses.Commenting on the test results and the planned forward programme at Wressle, Mark Abbott Managing Director of Egdon Resources said;“We are very encouraged by the early test results from the Wressle-oil and gas discovery. All three zones tested have produced hydrocarbons to surface, with a restrictedflowrate of 1.7 mmcfd from the Penistone Flags, free-flowing rates of up to 182 bopd and 0.46 mmcfd from the Wingfield Flags and 80 bopd from the Ashover Grit. We now look forward to the results of our work to identify the location of the expected oil leg in the Penistone and to seeing what oil rates can be achieved with pumping of the Ashover Grit. We will now be working hard to integrate these test results into our models of the Wressle discovery to enable us to update our resource assessment and to plan for the development of the field where we will look to maximise value from both the oil and gas. "