Egdon Resources plc (AIM:EDR) is pleased to advise that at the Planning and Regulation Committee Meeting of Lincolnshire County Council yesterday, planning consent was granted for the drilling and any subsequent testing of the North Kelsey-1 exploration well in Lincolnshire licence PEDL241.
The North Kelsey Prospect is located approximately 10 kilometres to the south of the Wressle-1 discovery well in PEDL180. The prospect is defined on 3D seismic data and has potential for up to four stacked conventional reservoir intervals in the Chatsworth, Beacon Hill, Ravensthorpe and Santon sandstones. The gross mean combined Prospective Resources for these multiple objectives, as calculated by Egdon are estimated to be 6.7 million barrels of oil.
It is intended to drill the North Kelsey-1 exploration well as part of a three well operated programme commencing during Q1 2015 which will include Laughton-1 in PEDL209 and Biscathorpe-1 in PEDL253, with Biscathorpe-1 still subject to planning. For clarity the operations at all sites will involve exploration for conventional hydrocarbons and will not involve the process of hydraulic fracking for shale gas.
The interests in the North Kelsey-1 well are:
|Egdon Resources U.K. Limited||40% (Operator)|
|Celtique Energie Petroleum Limited||50%|
|Union Jack Oil plc||10%|
Under the terms of a farm-in agreement with Union Jack plc, Egdon will be carried by Union Jack for 10% of its share of the North Kelsey-1 well costs.
Commenting on the planning decision Mark Abbott, Managing Director of Egdon said;
We are delighted to receive planning consent for the drilling of the North Kelsey-1 exploration well. North Kelsey will expose Egdon to 2.7 million barrels of mean Prospective Resources in a series of stacked sandstone reservoir targets. We will now work through the various planning conditions to be in a position to drill the North Kelsey-1 well as part of our H1 2015 drilling programme which in addition to operated wells at Laughton-1, North Kesley-1 and Biscathorpe-1 will include a well at Kiln Lane-1 operated by Europa.