TIDMEDR
RNS Number : 7451E
Egdon Resources PLC
10 November 2020
10 November 2020
EGDON RESOURCES PLC
("Egdon" or "the Company")
Biscathorpe Planning Update
Egdon Resources plc (AIM: EDR, "Egdon") is pleased to provide an
update on the Biscathorpe Project in Lincolnshire Licence PEDL253
where the Company holds a 35.80% interest.
This information will also be provided at a Biscathorpe
Community Liaison Group meeting being held later today 10 November
2020.
As previously advised, a detailed technical evaluation by the
PEDL253 Joint Venture has identified accessible drilling target
areas on the Biscathorpe Prospect, where evidence for a thickened
Westphalian sandstone reservoir interval is evident on the
reprocessed 3-D seismic. These areas can be targeted by a
side-track of the existing Biscathorpe-2 well which was suspended
following drilling operations in 2019. The proposed side-track will
also target the oil column logged in the underlying Dinantian
Carbonate in Biscathorpe-2.
Egdon, on behalf of the PEDL253 joint venture partners, will be
submitting an application for planning permission for the
side-track drilling operation, associated testing and in a success
case the long term production of oil at the site.
A screening opinion was sought from Lincolnshire County Council
(LCC) in respect of the need for an Environmental Impact
Assessment, given the scope of the proposed application, which
includes production, and the site location. A positive screening
opinion has been adopted by LCC and as such the planning
application will need to be accompanied by an Environmental
Statement which integrates a number of specialist reports and
assessments. This thorough process will enable Egdon to identify
and address any potential environmental impacts arising from the
proposed activity.
Notwithstanding social distancing requirements and restrictions
on meeting as a result of COVID-19, Egdon plans to engage with the
local community and statutory consultees via a virtual public
consultation event ahead of finalising the submission.
The planning application will be submitted before the end of
February 2021.
Commenting, Mark Abbott, Managing Director of Egdon Resources
plc, said:
"Biscathorpe represents a material and financially robust
opportunity to secure a lower carbon footprint (when compared to
imports) indigenous source of oil which would generate local and
regional economic benefits. Our planning application will include
long term production, which if approved would provide clarity on
planning, ahead of further drilling and would enable rapid
development in a success case.
We are committed to consulting with the local community and
other stakeholders and today's community liaison group meeting
provides an opportunity to commence this process as we continue to
develop the detailed planning application for submission."
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 & Joint Broker - WH Ireland Limited
Chris Hardie 020 7220 1666
Lydia Zychowska
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 43 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.
On 30 March2020, Egdon advised the following in respect of the
Biscathorpe prospect:;
-- Economic modelling showed that Biscathorpe was a financially
robust project even in the current low oil price environment
-- The principal Westphalian sandstone target has an estimated
un-risked gross NPV(10) of GBP55.6 million
-- Break-even full-cycle economics (including all capital costs)
were estimated to be (NPV(10)) US$18.07 per barrel of oil
-- A 57 metre oil bearing section in the Dinantian Carbonate of
Biscathrope-2 represents a secondary target with potentially
significant commercial upside
-- The identified drill targets are accessible via a side-track
of the suspended Biscathorpe-2 well.
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.
Glossary of Terms
Side-Track - A well drilled directionally out of an existing
wellbore.
NPV(10) - The present day value of the cumulative cash flows
from a project using a 10% annual discount rate
Reservoir - are rock formations capable of containing fluids,
namely oil, gas and water (brine). These fluids accumulate in the
natural pores and fractures that exist in the reservoir rock.
Typical reservoirs comprise sandstones or limestones
(carbonates).
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.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
UPDFZMGMRLZGGZM
(END) Dow Jones Newswires
November 10, 2020 02:00 ET (07:00 GMT)
Egdon Resources (LSE:EDR)
Historical Stock Chart
From Mar 2024 to Apr 2024
Egdon Resources (LSE:EDR)
Historical Stock Chart
From Apr 2023 to Apr 2024
