Egdon Resources PLC Springs Road Update - Resource Density Results (0897M)

TIDMEDR

RNS Number : 0897M

Egdon Resources PLC

12 September 2019

12 September 2019

EGDON RESOURCES PLC

("Egdon" or "the Company")

Springs Road Update - Resource Density in Bowland Shales

Egdon Resources plc is pleased to note the announcement made this morning by IGas Energy plc ("IGas") of its First Half 2019 Results and associated presentation which provides further details of results from the analysis of whole core from the Springs Road-1 ("SR 01") well on licence PEDL140, in which Egdon holds a 14.5% interest.

The IGas release states;

" We mobilised the equipment to our Springs Road development in North Nottinghamshire in early January 2019 and spudded the well on 22 January 2019. In mid-February 2019, we encountered shales on prognosis, at c.2,200 metres depth and drilled through a significant hydrocarbon bearing shale sequence, including the upper and lower Bowland Shale.

The well sought to assess three target zones: the Bowland Shale; the Millstone Grit and the Arundian Shale. All three targets were encountered, with 429 metres of hydrocarbon bearing shales encountered within the primary target, the Bowland Shale.

IGas acquired 147 metres of core within the Bowland Shale, the first extensive core sample from this basin, which has subsequently been analysed by Stratum Reservoir (formerly Weatherford Labs) in their laboratories in both the UK and the USA.

The results from the core analysis are extremely positive and confirm that a significant hydrocarbon resource is present in the Gainsborough Trough. Following further detailed analysis, the core results are as follows:

 
                          SR-01 Upper Bowland   SR-01 Lower Bowland 
 Organic content          3.2% (0-8.4%)         2.5% (0-6.6%) 
                         --------------------  -------------------- 
 Maturity (Ro)            c. 1.17%              c.1.29% 
                         --------------------  -------------------- 
 Shale thickness          179m                  305m 
                         --------------------  -------------------- 
 Approx. depth            2,109-2,288m          2,288-2,593m 
                         --------------------  -------------------- 
 Clay content             43%                   22% 
                         --------------------  -------------------- 
 Matrix porosity          4.8% (1-11%)          3.0% (1-9%) 
                         --------------------  -------------------- 
 Natural fracturing       Yes                   Yes 
                         --------------------  -------------------- 
 Estimated GIIP bcf/Sq 
  mile* (Adsorbed and 
  free)*                  231                   409 
                         --------------------  -------------------- 
 

*volumetric estimates based on SR-01 data only, no regional data has been incorporated and as such does not account for thickness variations and reservoir heterogeneity within the basin. Secondary (Millstone Grit) and tertiary (Arundian shale) targets excluded."

A presentation including slides on Springs Road -1 core data analysis will be available later today at IGas' website http://www.igasplc.com/

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

"We continue to be encouraged by the results from Springs Road-1, particularly the combined Bowland shale gas in place of 640 bcf/square mile ("the resource density"). This is more than three times Egdon's previous external estimates of the mean resource density for the entire Bowland Shale section in PEDL139/140 as reported by ERCE in 2014.

The results from this extensive modern dataset demonstrate that the Bowland Shale of the Gainsborough Trough, where Egdon currently holds 82,000 net acres (128 square miles), compares favourably with some of the best US commercial shale plays and is potentially world class.

We look forward to sharing further data on the well as it become available, particularly on the secondary target, the tight gas sands of the Millstone Grit"

For further information please contact:

Egdon Resources plc

   Mark Abbott / Martin Durham                                                      01256 702 292 

Buchanan

   Ben Romney, Chris Judd                                                            020 7466 5000 

Nominated Adviser and Broker - Cantor Fitzgerald Europe

   David Porter/ Rick Thompson (Corporate Finance)                    020 7894 7000 

Caspar Shand Kydd (Sales)

Joint Broker - VSA Capital Limited

   Andrew Monk (Corporate Broking)                                               020 3005 5000 

Andrew Raca (Corporate Finance)

Gainsborough Trough

Egdon has extensive operated and non-operated acreage interests in the Gainsborough Trough unconventional gas plays in the East Midlands.

Egdon are the third largest net acreage holder in the Gainsborough Trough play with 82,000 net acres with shale/tight gas potential.

Egdon's licences in the Gainsborough Trough were estimated to contain 20 TCF of net Undiscovered GIIP in Upper and Lower Bowland-Hodder Shales (or 40% of Egdon's total net undiscovered unconventional resources GIIP of 51 TCF (ERCE 2014 and 2016 see below). The Springs Road-1 well is the first modern well employing the latest logging and coring techniques to test these Carboniferous age tight gas and shale gas plays with Egdon's acreage.

Further information on the Gainsborough Trough is available on our website at http://www.egdon-resources.com/gainsborough-trough/ and http://www.egdon-resources.com/operations/uk/east-midlands/

Further information on the Springs road well can be found at the operator IGas' engagement website http://www.igas-engage.co.uk/our-work-in-north-nottinghamshire/

Egdon Resources plc (LSE: EDR) is an established UK-based exploration and production company focused on onshore exploration and production in the hydrocarbon-producing basins of the UK.

Egdon holds interests in 44 licences in the UK and has an active programme of exploration, appraisal and development within its portfolio of oil and gas assets. Egdon is an approved operator in the UK.

Egdon was formed in 1997 and listed on AIM in December 2004.

ERCE Estimates

ERCE's estimates of undiscovered GIIP are subject to exploration risk, which may be considerable. ERCE has not assessed this risk as no Prospective Resources have yet been attributed to these properties by Egdon and ERCE, and further geoscientific and engineering data need to be acquired to be able to quantify these resources. ERCE notes that mining of the overlying coal measures has occurred in a number of the licences, which may affect site access and drilling operations. In the case where Prospective Resources are identified within these licences, there is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources.

Qualified Person Review

In accordance with the AIM Rules - Note for Mining and Oil and Gas Companies, this release has been reviewed by Mark Abbott, Managing Director of Egdon, who is a geoscientist with over 30 years' experience and is a member of the Petroleum Exploration Society of Great Britain and a Fellow of the Geological Society. Mr Abbott has consented to the inclusion of the technical information in this release in the form and context in which it appears.

Evaluation of hydrocarbon volumes has been assessed in accordance with 2007 Petroleum Resources Management System prepared by the Oil and Gas Reserves Committee of the Society of Petroleum Engineers (SPE) and reviewed and jointly sponsored by the World Petroleum Council (WPC), the American Association of Petroleum Geologists (AAPG) and the Society of Petroleum Evaluation Engineers (SPEE).

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). Upon the publication of this announcement via Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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September 12, 2019 02:01 ET (06:01 GMT)