Egdon Resources plc (AIM: EDR, “Egdon”) is pleased to provide an update on the Wressle development in North Lincolnshire Licences PEDL180 and PEDL182 where the Company holds a 30% operated interest.
Given recent events in the oil and gas markets, Egdon has updated its economic model for the Wressle project.
This work demonstrates that the project is economically robust in the current low oil price environment with an estimated project break-even oil price of $17.62 per barrel.
The Wressle development was granted planning consent on appeal on 17 January 2020. The planning inspector also allowed Egdon’s application for costs against North Lincolnshire Council (“NLC”) and this has subsequently been submitted to NLC.
The forward plan for the Wressle development comprises the following key stages
- Discharging the planning conditions, finalising detailed designs, tendering and procurement of materials, equipment and services and finalising all HSE documentation and procedures
- Installation of the ground water monitoring boreholes and establishment of baseline conditions through monitoring
- Reconfiguration of the site
- Installation and commissioning of surface facilities
- Sub-surface operations
- Commencement of production
Progress to date has concentrated on the enabling works highlighted in point 1 above. The initial work on site will be the installation of the groundwater monitoring boreholes with the main site operations occurring in the last months of the work stream. On current plans, the Company envisages first oil during H2 2020.
Commenting, Mark Abbott, Managing Director of Egdon Resources plc, said:
“Our modelling shows that the Wressle development is economically robust at and below the current oil price and remains a core focus for the business with a current expectation of first oil in the second half of 2020.”