Springs Road Update

RNS Number : 2062Q

Egdon Resources PLC

15 February 2019

 

            15 February 2019

EGDON RESOURCES PLC

 ("Egdon" or "the Company")

Springs Road Update

Egdon Resources plc notes the announcement made by IGas Energy plc ("IGas") responding to the press article in "The Sun" newspaper which contains details of the highly encouraging results from the Tinker Lane-1 well drilled on the southern margin of the Gainsborough Trough. The announcement also provided an update on the Springs Road-1 well on license PEDL140, in which Egdon holds 14.5% interest. The IGas release stated;

"We note the press article today in relation to our Tinker Lane exploration site in North Nottinghamshire.

The preliminary tests on shale samples from within the Millstone Grit Group at Tinker Lane are encouraging for the potential gas resources in the Gainsborough Trough basin. The analysis of these samples is still subject to further testing and validation.  As previously stated, the well, which is part of a wider exploration programme in the basin, has been plugged and abandoned and preparations are being made to fully restore the site.

Drilling operations at Springs Road-1 are progressing well. We have encountered shales on prognosis, at c.2,200 m, including the Bowland Shale horizon and coring will commence imminently. The rate of drilling at Springs Road has been quicker than anticipated, building on our learnings and operating efficiencies from Tinker Lane and augurs well for the future."

Mark Abbott, Managing Director of Egdon Resources plc, said:

"Although preliminary, these results are highly encouraging for the Gainsborough Trough shale play and we look forward with anticipation to the results from Springs Road-1 where progress to date has been significantly ahead of schedule"

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:

Sun Article

https://www.thesun.co.uk/news/8432323/theresa-may-fracking-30-years-gas/

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 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). These Carboniferous age tight gas and shale gas plays with Egdon's acreage have yet to be tested by modern wells employing the latest logging and coring techniques.

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

 

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