CPR on Wressle-1 and Broughton North Prospect

RNS Number : 7418K

Egdon Resources PLC

26 September 2016

 

26 September 2016

EGDON RESOURCES PLC

("Egdon" or "the Company")

Competent Person's Report on the Wressle-1 Discovery and the Broughton North Prospect, Onshore UK

Egdon Resources plc (AIM:EDR) is pleased to announce the results of a Competent Person's Report ("CPR") prepared by ERC Equipoise Ltd ("ERCE" or "Competent Person") in relation to UK Onshore (Lincolnshire) licences PEDL180 and PEDL182 in both of which Egdon is operator and holds a 25.00% interest.  ERCE has made independent estimates of Reserves and Contingent and Prospective oil and gas Resources that can be ascribed to the 2014 Wressle-1 discovery and the Broughton North Prospect within the licences.   

ERCE's letter to Egdon's Board of Directors summarising the findings of the CPR has been published on the Company's website (www.egdon-resources.com).

Highlights:

Wressle

·      Gross Mean Discovered Stock Tank Oil Initially In Place ("STOOIP") of 14.18 million stock tank barrels in aggregate across three reservoir sands (Ashover Grit, Wingfield Flags and Penistone Flags) of which 2.15 million stock tank barrels is classified as discovered (2P+2C).

·      Gross 2P oil Reserves (Justified For Development) of 0.62 million stock tank barrels in aggregate identified across two reservoir sands, the Ashover Grit and Wingfield Flags, that form the basis for the initial Field Development Plan that has been submitted to the Oil and Gas Authority ("OGA") and for which a planning application is currently being considered by North Lincolnshire Council.

·      Gross 2P gas Reserves (Justified For Development) of 0.2 billion standard cubic feet will be monetised using on-site power generation with excess power sold into the National Grid.

·      Substantial Contingent Resources have also been confirmed in the Penistone Flags reservoir with gross 2C Contingent Resources of 1.53 million stock tank barrels of oil and 2.0 billion standard cubic feet of gas.

·      Plans to produce from the Penistone Flags reservoir are expected to be progressed following commencement of production from the Ashover Grit and will include monetisation of the produced gas by pipeline export or electricity generation and export.

Broughton North Prospect

·      The Broughton North Prospect is in a fault block immediately to the north-west of the Wressle structure and ERCE has attributed a high Geological Chance of Success of 40% to 49% to the prospect.

·      Gross Mean Stock Tank Oil Initially In Place ("STOOIP") for the Broughton North Prospect  is 3.43 million stock tank barrels in aggregate across two reservoir sands (Ashover Grit and Penistone Flags) with Mean Prospective Resources of 0.51million stock tank barrels of oil plus 0.51 billion standard cubic feet of gas.

The Gross numbers mentioned above are summarised with the net Egdon interests in the following table

		Gross Volumes			Net Volumes attributable to Egdon
	Oil MMstb	Gas bcf	Oil Equiv MMboe	Oil MMstb	Gas      bcf	Oil Equiv MMboe
2P Ashover Grit  and Wingfield Flags	0.62	0.20	0.65	0.15	0.05	0.16
2C Penistone Flags	1.53	2.00	1.86	0.38	0.50	0.47
Broughton North Mean Unrisked  Prospective Resources	0.51	0.51	0.60	0.13	0.13	0.15

The interests held in both PEDL180 and PEDL182 are:

Egdon Resources U.K. Limited (Operator)    25.00%

Celtique Energie Petroleum Limited               33.33%

Europa Oil & Gas Limited                                  33.34%

Union Jack Oil plc                                                 8.33%

Commenting on the CPR, Mark Abbott, Managing Director of Egdon Resources plc, said:

"The CPR has independently confirmed the commercial viability of the Wressle field development with overall oil and gas Reserves and Contingent Resources exceeding our original pre-drill estimates.  Subject to receipt of Planning and Permit approvals, we now expect first production from the Ashover Grit at Wressle -1 well at rates of 500 barrels of oil per day (125 bopd net to Egdon) in early 2017, adding material revenue and cash flow for Egdon.

The CPR also highlights the significant Contingent oil and gas resource in the Penistone Flags and the low risk Broughton North prospect that has been identified as a near-term drilling candidate within Egdon's asset portfolio."

For further information please contact:

Egdon Resources plc

Mark Abbott                                                                                                           01256 702 292

Buchanan

Richard Darby, Anna Michniewicz                                                                    020 7466 5000

Nominated Adviser and Broker - Cantor Fitzgerald Europe

David Porter, Sarah Wharry (Corporate Finance)                                         020 7894 7000

Mark Westcott (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 primarily focused on onshore exploration and production in the hydrocarbon-producing basins of the UK.

Egdon currently holds interests in thirty four licences in the UK and France and is awaiting the issue of a further nine new UK licences in the 14th Round.  The Company has an active programme of exploration, appraisal and development within its balanced portfolio of oil and gas assets and is an approved operator in both the UK and France.  Egdon was formed in 1997 and listed on AIM in December 2004.

In accordance with the AIM Rules - Note for Mining and Oil and Gas Companies, the information contained in this announcement has been reviewed and signed off by the Managing Director of Egdon Resources plc Mark Abbott, a Geoscientist with over 26 years' experience.

Evaluation of potential recoverable hydrocarbons has been assessed in accordance with 2007 Petroleum Resources Management System prepared by the Oil and Gas Reserves Committee of the Society of Petroleum Engineers (SPE) and reviewed and jointly sponsored by the World Petroleum Council (WPC), the American Association of Petroleum Geologists (AAPG) and the Society of Petroleum Evaluation Engineers (SPEE).

Glossary

The terms used in this announcement are defined in ERCE's letter to Egdon's Board of Directors summarising the findings of the CPR which has been published on the Company's website (www.egdon-resources.com).

 

END

 

 

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