TIDMEDR
RNS Number : 0897M
Egdon Resources PLC
12 September 2019
12 September 2019
EGDON RESOURCES PLC
("Egdon" or "the Company")
Springs Road Update - Resource Density in Bowland Shales
Egdon Resources plc is pleased to note the announcement made
this morning by IGas Energy plc ("IGas") of its First Half 2019
Results and associated presentation which provides further details
of results from the analysis of whole core from the Springs Road-1
("SR 01") well on licence PEDL140, in which Egdon holds a 14.5%
interest.
The IGas release states;
" We mobilised the equipment to our Springs Road development in
North Nottinghamshire in early January 2019 and spudded the well on
22 January 2019. In mid-February 2019, we encountered shales on
prognosis, at c.2,200 metres depth and drilled through a
significant hydrocarbon bearing shale sequence, including the upper
and lower Bowland Shale.
The well sought to assess three target zones: the Bowland Shale;
the Millstone Grit and the Arundian Shale. All three targets were
encountered, with 429 metres of hydrocarbon bearing shales
encountered within the primary target, the Bowland Shale.
IGas acquired 147 metres of core within the Bowland Shale, the
first extensive core sample from this basin, which has subsequently
been analysed by Stratum Reservoir (formerly Weatherford Labs) in
their laboratories in both the UK and the USA.
The results from the core analysis are extremely positive and
confirm that a significant hydrocarbon resource is present in the
Gainsborough Trough. Following further detailed analysis, the core
results are as follows:
SR-01 Upper Bowland SR-01 Lower Bowland
Organic content 3.2% (0-8.4%) 2.5% (0-6.6%)
-------------------- --------------------
Maturity (Ro) c. 1.17% c.1.29%
-------------------- --------------------
Shale thickness 179m 305m
-------------------- --------------------
Approx. depth 2,109-2,288m 2,288-2,593m
-------------------- --------------------
Clay content 43% 22%
-------------------- --------------------
Matrix porosity 4.8% (1-11%) 3.0% (1-9%)
-------------------- --------------------
Natural fracturing Yes Yes
-------------------- --------------------
Estimated GIIP bcf/Sq
mile* (Adsorbed and
free)* 231 409
-------------------- --------------------
*volumetric estimates based on SR-01 data only, no regional data
has been incorporated and as such does not account for thickness
variations and reservoir heterogeneity within the basin. Secondary
(Millstone Grit) and tertiary (Arundian shale) targets
excluded."
A presentation including slides on Springs Road -1 core data
analysis will be available later today at IGas' website
http://www.igasplc.com/
Commenting on these results, Mark Abbott, Managing Director of
Egdon Resources plc, said:
"We continue to be encouraged by the results from Springs
Road-1, particularly the combined Bowland shale gas in place of 640
bcf/square mile ("the resource density"). This is more than three
times Egdon's previous external estimates of the mean resource
density for the entire Bowland Shale section in PEDL139/140 as
reported by ERCE in 2014.
The results from this extensive modern dataset demonstrate that
the Bowland Shale of the Gainsborough Trough, where Egdon currently
holds 82,000 net acres (128 square miles), compares favourably with
some of the best US commercial shale plays and is potentially world
class.
We look forward to sharing further data on the well as it become
available, particularly on the secondary target, the tight gas
sands of the Millstone Grit"
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 and Broker - Cantor Fitzgerald Europe
David Porter/ Rick Thompson (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)
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 were estimated to
contain 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
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.
END
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