Egdon Resources plc (AIM:EDR) is pleased to provide an update on the expected timing of the Burton on the Wolds-1 conventional exploration well in UK Onshore Licence PEDL201 located in Leicestershire.
The drilling rig and associated equipment has been demobilised from the Wressle-1 well-site following the completion of that well for future testing operations. The rig will now drill a single well for Alkane Energy plc, which was deferred to enable the Wressle-1 well to be drilled, before then mobilising to Burton on the Wolds. Well-site construction at Burton on the Wolds has been completed and it is anticipated that operations will commence by mid-October.
We will provide a further update to shareholders on commencement of drilling operations.
The Burton on the Wolds Prospect is defined on proprietary 2D seismic data which was acquired by Egdon in May 2011. Evaluation has highlighted a conventional oil prospect with targets at two distinct Carboniferous stratigraphic levels. The shallower target, the Rempstone Sandstone, is productive at the nearby Rempstone oil field. A seismic anomaly, possibly indicative of a carbonate reef, underlies the Rempstone Sandstone and provides a deeper secondary target. The mean combined Prospective Resources for the two target objectives, as calculated by Egdon are estimated to be 3.8 million barrels of oil.
The planned vertical well will be relatively shallow with a drilled depth of around 1,000 metres. It has been designed to intersect both targets in a structurally favourable position near the crest of the Burton on the Wolds structure.
The interests in Licence PEDL201 and the Burton on the Wolds-1 well are:
|Egdon Resources U.K. Limited
|Celtique Energie Petroleum Limited
|Terrain Energy Limited
|Corfe Energy Limited
|Union Jack Oil plc
As a result of previously announced farm-outs, Egdon’s net share of the cost of the Burton on the Wolds-1 well will be 15%.
For the avoidance of doubt the Burton on the Wolds prospect is a conventional oil prospect and our operations will not, either now or in the future, involve the process of hydraulic ‘fracking’ for shale gas since the area around the Burton on the Wolds prospect has neither the required conditions nor the specific rock-types present for shale gas exploration.