Egdon Resources plc (AIM:EDR) is pleased to announce that it has been notified by North Lincolnshire Council that Planning Consent has been granted for the drilling of an exploratory borehole on the Wressle Prospect in UK Onshore Petroleum Exploration and Production Licence PEDL180, located to the east of Scunthorpe.
The Wressle Prospect is defined on proprietary 3D seismic data, which was acquired by Egdon in February 2012. The Prospect is located on trend with the producing Crosby Warren oil field and the Broughton-B1 oil discovery, both to the immediate northwest, and the Brigg-1 oil discovery to the immediate southeast. These contain oil in multiple Upper Carboniferous sandstone reservoirs. The gross most likely Prospective Resources(Note 1) at Wressle, as calculated by Egdon, are estimated to be 2.1 million barrels of oil.
The planned well will be drilled as a deviated well to a total depth of about 2300 metres (ca. 1850 metres TVDSS (Note 2)) with a maximum offset of approximately 1250 metres. It has been designed to intersect all of the prospective sandstone reservoirs in a structurally favourable position near the crest of the Wressle structure.
The interests in the Wressle-1 well are:
|Egdon Resources U.K. Limited||25.00% (Operator)|
|Celtique Energie Petroleum Limited||33.33%|
|Europa Oil & Gas Limited||33.34%|
|Union Jack Oil plc||8.33%|
Under the terms of a Farm-Out Agreement, as previously announced, Union Jack Oil plc will pay an additional 8.33% out of Egdon’s share of the cost of the well so reducing Egdon’s net share of the cost to 16.67%.
Commenting on the approval Mark Abbott, Managing Director of Egdon said:
“We are pleased that North Lincolnshire Council has approved our application for the drilling of the Wressle-1 exploration well and we can now look forward to the commencement of drilling operations later in 2013.”
(Note 1) Prospective Resources are those quantities of petroleum which are estimated, on a given date, to be potentially recoverable from undiscovered accumulations.
(Note 2) TVDSS means True Vertical Depth Sub-Sea which is the vertical depth measured relative to a datum of mean sea level.