Springs Road-1 Operational Update

RNS Number : 3837S

Egdon Resources PLC

11 March 2019

 

11 March 2019

EGDON RESOURCES PLC

 ("Egdon" or "the Company")

Springs Road-1 Operational Update - Over 250 metre Hydrocarbon Bearing Shale Sequence Encountered

Egdon Resources plc is pleased to note the announcement made this morning by IGas Energy plc ("IGas") which summarises the results from the initial phase of drilling operations at the Springs Road-1 ("SR-01") well on license PEDL140, in which Egdon holds 14.5% interest.

The IGas release stated;

"IGas is pleased to announce an update regarding the SR-01 well at Springs Road in North Nottinghamshire.

Further to our announcement on 15 February 2019, we have now encountered a hydrocarbon bearing shale sequence of over 250 metres, including the upper and lower Bowland Shale.  Significant gas indications were observed throughout the shale section and additionally within sands in the Millstone Grit sequence.  

A video showing some recovered core from the well effervescing gas when immersed in water can be viewed here: https://youtu.be/dnZDrTLWiyQ and on the website at www.igasplc.com

We have now completed this phase of data acquisition which included the recovery of approximately 150m of shale core and an extensive wireline logging program across the Millstone Grit, and Upper and Lower Bowland Shale. Petrophysical and core analysis is currently being conducted, which will give us further insight into the resource potential and shale characterisation that will be utilised for future appraisal and development of the wider East Midlands area.

We will give a further update following the completion of the majority of the analysis in Q2.

Having encountered both primary and secondary targets on prognosis we are now drilling into the tertiary target, to prove up the potential for multiple hydrocarbon bearing horizons within the Gainsborough Trough.

The rate of drilling at Springs Road has been quicker than anticipated, building on our learnings and operating efficiencies from Tinker Lane.

The analysis of the Tinker Lane core samples is still ongoing.

Commenting, Stephen Bowler, CEO said:

"I am delighted to report that we have recovered high quality hydrocarbon bearing cores at our Springs Road site. The data gathered to date shows that there are significant prospective resources in our East Midlands acreage and is another important step for the UK onshore industry.

There is the potential for the gas beneath our feet to contribute materially to the UK energy needs. Gas is important for our energy requirements, not least because over 80% of the homes across the county are heated by gas. These results come at a time when we are importing more and more gas from overseas and could stimulate investment in the East Midlands basin as well as improving the country's balance of payments."

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

"These initial results from the Springs Road-1 well are highly encouraging for both PEDL140 and the wider potential of Egdon's extensive licence portfolio in the East Midlands.  We now look forward to the results from the drilling of the deeper sequences in the Springs Road-1 well over the coming weeks and the detailed analysis of the core and log data acquired to date in the coming months. However, these positive results from Springs Road-1 when added to those from Tinker Lane-1 appear to validate our strategic focus on the Gainsborough Trough where the Company holds interests in 82,000 net acres.

It is clear from these and other recent results that UK onshore gas has the potential to reduce the UK's increasing dependency on gas imports over the coming decades, with both economic and environmental benefits to the country."

For further information please contact:

Egdon Resources plc

Mark Abbott                                                                                   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:

Gainsborough Trough

Egdon has extensive operated and non-operated acreage interests in the Gainsborough Trough unconventional gas plays in the East Midlands.

Egdon are the third largest net acreage holder in the Gainsborough Trough play with 82,000 net acres with shale/tight gas potential

Egdon's licences in the Gainsborough Trough contain an estimated 20 TCF of net Undiscovered GIIP in Upper and Lower Bowland-Hodder Shales (or 40% of Egdon's total net undiscovered unconventional resources GIIP of 51 TCF (ERCE 2014 and 2016 see below). The Springs Road-1 well is the first modern well employing the latest logging and coring techniques to test these Carboniferous age tight gas and shale gas plays with Egdon's acreage.

Further information on the Gainsborough Trough is available on our website at http://www.egdon-resources.com/gainsborough-trough/ and http://www.egdon-resources.com/operations/uk/east-midlands/ 

Further information on the Springs road well can be found at the operator IGas' engagement website http://www.igas-engage.co.uk/our-work-in-north-nottinghamshire/ 

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.

ERCE Estimates

ERCE's estimates of undiscovered GIIP are subject to exploration risk, which may be considerable. ERCE has not assessed this risk as no Prospective Resources have yet been attributed to these properties by Egdon and ERCE, and further geoscientific and engineering data need to be acquired to be able to quantify these resources. ERCE notes that mining of the overlying coal measures has occurred in a number of the licences, which may affect site access and drilling operations. In the case where Prospective Resources are identified within these licences, there is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources.

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.

Evaluation of hydrocarbon volumes 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).

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

 

END

 

 

UPDSFIESSFUSEID