Wressle Development Update

3 August 2020

Egdon Resources plc (AIM: EDR, “Egdon”) is pleased to provide an update on the Wressle Oil Field Development (“Wressle”) where site works have now commenced.  Wressle is located in North Lincolnshire Licences PEDL180 and PEDL182 where the Company holds a 30% operated interest.

The site civils contractor has mobilised and the works to reconfigure the Wressle production site have commenced.  These works, which represent an important step in the development, will comprise the installation of a new High Density Polyethelene (HDPE) impermeable membrane; French drain system; an approved surface water interceptor; the construction of a purpose-built bund area for storage tanks; a tanker loading plinth and an internal roadway system.

The Company remains on track for first oil during H2 2020 as previously advised.

The Wressle development comprises a number of key stages which are summarised below along with progress made to date:

  • Discharging the planning conditions, finalising detailed designs, tendering and procurement of materials, equipment and services and finalising all HSE documentation and procedures;
    • the key planning conditions have been discharged, progress with detailed design tendering and procurement is proceeding as per the plan and all HSE documentation and procedures are progressing as per expectation
  • Installation of groundwater monitoring boreholes and establishing baseline groundwater quality through monitoring and analysis;
    • four groundwater monitoring boreholes have been installed and two rounds of sampling and analysis undertaken to date
  • Reconfiguration of the site;
    • site works have commenced
  • Installation and commissioning of surface facilities;
  • Sub-surface operations; and
  • Commencement of production

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

“We continue to make good progress with the Wressle development,  in line with the expected timeline, despite the challenges of the current operating environment. The commencement of the site reconfiguration works represents an important step in the progress to first oil which will increase Egdon’s production by 150 barrels of oil per day. Wressle is economically robust with an estimated project break-even oil price of $17.62 per barrel. 

We maintain our guidance of first oil during H2 2020 and will continue to update stakeholders as works progress.”