TIDMEDR
RNS Number : 6768R
Egdon Resources PLC
04 March 2019
4 March 2019
EGDON RESOURCES PLC
("Egdon" or "the Company")
Operations Update
Egdon Resources plc (AIM:EDR) is pleased to provide an update on
operations following the end of the first half of the Company's
2018-2019 financial year ("H1 2019") which ended on 31 January
2019. The Company's half year results are scheduled to be announced
on 9 April 2019.
Production
Production from the Ceres gas field and the Keddington and
Fiskerton Airfield oil fields during the H1 2019 period was 30,026
barrels of oil equivalent ("boe"), at an average of 164 boe per day
("boepd") (H1 2018 17,962 boe, 98 boepd), in line with previously
stated guidance.
Production recommenced from the Ceres well in late October 2018
following installation of a new flow meter. Egdon's gas sales from
Ceres since restart over the period from November 2018 to January
2019 has averaged GBP234,000 per month.
Egdon's total production during January 2019 was 238 boepd,
demonstrating the impact of the increased Ceres gas flow.
Operations
Springs Road-1
As reported on 15 February 2019 drilling operations at Springs
Road-1 in the Gainsborough Trough shale play are progressing faster
than expected (EDR 14.5% carried). The operator IGas advised that
the well has encountered shales including the Bowland Shale on
prognosis, at c.2,200 m, and that the coring operation is underway.
We are encouraged by the operational performance and provisional
descriptions of the Bowland Shale and look forward to IGas Energy
plc providing updates as the results from the drilling and coring
operations become available.
We also note the preliminary gas concentrations that have been
reported from the Millstone Grit sequence in the Tinker Lane-1 well
which are highly encouraging for the potential gas resource play in
the Gainsborough Trough, where Egdon has a significant acreage
position in addition to Springs Road.
Biscathorpe
As reported on 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 are in the final stages of being
demobilised from site.
Resolution
We are in third-party discussions relating to the introduction
of an industry partner to fund the planned 3D seismic and appraisal
drilling on the Resolution Gas Discovery and hope to be in a
position to update shareholders in the coming period.
Correspondingly, we are also in discussions with contractors in
relation to a potential autumn 2019 3D seismic survey over
Resolution. We also anticipate providing an updated resource
assessment following completion of an independent competent persons
report (CPR).
Wressle
On 1 February 2019, we submitted to the Planning Inspectorate an
appeal against the refusal of planning consent for the development
of the Wressle oil field. We have received a swift response to
confirm validation of the appeal from the Planning Inspectorate and
look forward to confirmation of the inquiry date in due course.
On 24 January 2019, we were advised that the Planning Inspector
had upheld our appeal to extend the existing planning consent for
the Wressle site until 24 January 2020. This provides the required
time for the appeal of the development refusal to be concluded.
Commenting on current operations Mark Abbott, Managing Director
of Egdon Resources plc, said:
"I am pleased to report the positive impact of Ceres on our
production and cash flow during the period and we look forward to
continuing strong production from the field for the rest of the
financial year and beyond.
We are eagerly anticipating the results from Springs Road-1
where progress to date has been significantly ahead of schedule and
provisional descriptions of the Bowland Shale, which was
encountered on prognosis, are promising. We also note the
encouraging preliminary gas concentrations reported from Tinker
Lane-1 which are highly positive for the Gainsborough Trough shale
play.
We will now take some time to integrate the results of the
Biscathorpe-2 well into our subsurface models before deciding on
how best to progress further exploration on this large
prospect.
We will also be focussed on obtaining a positive outcome from
the Wressle planning inquiry."
For further information please contact:
Egdon Resources plc
Mark Abbott, Martin Durham 01256 702 292
Buchanan
Ben Romney, Chris Judd 020 7466 5000
Nominated Adviser and Broker - Cantor Fitzgerald Europe
David Porter/Nick Tulloch (Corporate Finance) 020 7894 7000
Caspar Shand Kydd (Sales)
Joint Broker - VSA Capital Limited
Andrew Monk (Corporate Broking) 020 3005 5000
Andrew Raca (Corporate Finance)
Notes to Editors:
Egdon Resources plc (LSE: EDR) is an established UK-based
exploration and production company focused on onshore exploration
and production in the hydrocarbon-producing basins of the UK.
Egdon holds interests in 44 licences in the UK and has an active
programme of exploration, appraisal and development within its
portfolio of oil and gas assets. Egdon is an approved operator in
the UK.
Egdon was formed in 1997 and listed on AIM in December 2004.
Qualified Person Review
In accordance with the AIM Rules - Note for Mining and Oil and
Gas Companies, this release has been reviewed by Mark Abbott,
Managing Director of Egdon, who is a geoscientist with over 30
years' experience and is a member of the Petroleum Exploration
Society of Great Britain and a Fellow of the Geological Society. Mr
Abbott has consented to the inclusion of the technical information
in this release in the form and context in which it appears.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). Upon the
publication of this announcement via Regulatory Information Service
("RIS"), this inside information is now considered to be in the
public domain
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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