Egdon Resources says a competent person's report has independently confirmed the commercial viability of the Wressle field development.
The report was prepared by ERC Equipoise Ltd in relation to UK Onshore (Lincolnshire) licences PEDL180 and PEDL182 in both of which Egdon is operator and holds a 25.00% interest.
ERCE has made independent estimates of reserves and contingent and prospective oil and gas Resources that can be ascribed to the 2014 Wressle-1 discovery and the Broughton North Prospect within the licences.
Highlights: Wressle - Gross Mean Discovered Stock Tank Oil Initially In Place ("STOOIP") of 14.18 million stock tank barrels in aggregate across three reservoir sands (Ashover Grit, Wingfield Flags and Penistone Flags) of which 2.15 million stock tank barrels is classified as discovered (2P+2C).
- Gross 2P oil Reserves (Justified For Development) of 0.62 million stock tank barrels in aggregate identified across two reservoir sands, the Ashover Grit and Wingfield Flags, that form the basis for the initial Field Development Plan that has been submitted to the Oil and Gas Authority ("OGA") and for which a planning application is currently being considered by North Lincolnshire Council.
- Gross 2P gas Reserves (Justified For Development) of 0.2 billion standard cubic feet will be monetised using on-site power generation with excess power sold into the National Grid.
- Substantial Contingent Resources have also been confirmed in the Penistone Flags reservoir with gross 2C Contingent Resources of 1.53 million stock tank barrels of oil and 2.0 billion standard cubic feet of gas.
- Plans to produce from the Penistone Flags reservoir are expected to be progressed following commencement of production from the Ashover Grit and will include monetisation of the produced gas by pipeline export or electricity generation and export.
Broughton North Prospect
- The Broughton North Prospect is in a fault block immediately to the north-west of the Wressle structure and ERCE has attributed a high Geological Chance of Success of 40% to 49% to the prospect.
- Gross Mean Stock Tank Oil Initially In Place ("STOOIP") for the Broughton North Prospect is 3.43 million stock tank barrels in aggregate across two reservoir sands (Ashover Grit and Penistone Flags) with Mean Prospective Resources of 0.51million stock tank barrels of oil plus 0.51 billion standard cubic feet of gas.
Egdon managing director Mark Abbott said: "The CPR has independently confirmed the commercial viability of the Wressle field development with overall oil and gas Reserves and Contingent Resources exceeding our original pre-drill estimates.
"Subject to receipt of Planning and Permit approvals, we now expect first production from the Ashover Grit at Wressle -1 well at rates of 500 barrels of oil per day (125 bopd net to Egdon) in early 2017, adding material revenue and cash flow for Egdon.
"The CPR also highlights the significant Contingent oil and gas resource in the Penistone Flags and the low risk Broughton North prospect that has been identified as a near-term drilling candidate within Egdon's asset portfolio."