Egdon Resources PLC CPR on Wressle-1 and Broughton North Prospect (7418K)
September 26 2016 - 2:00AM
UK Regulatory
TIDMEDR
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
Net Volumes
Gross attributable
Volumes to Egdon
Oil Oil
Oil Gas Equiv Oil Gas Equiv
MMstb bcf MMboe MMstb bcf 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).
This information is provided by RNS
The company news service from the London Stock Exchange
END
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