Egdon Resources Gets Positive Results From Further Biscathorpe Work

(Alliance News) - Egdon Resources PLC on Monday said further analyses of results from a ...

Alliance News 15 July, 2019 | 10:42AM
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(Alliance News) - Egdon Resources PLC on Monday said further analyses of results from a Lincolnshire well have highlighted the site's potential.

The Egdon announcement was noted by Union Jack Oil PLC, which owns 22% of licence PEDL253. Egdon owns 36% of the licence.

The licence contains the Biscathorpe prospect into which Biscathorpe-2 was drilled.

In February, Egdon said it found "elevated" gas readings in the well from the Westphalian and Dinantian intervals, as well as oil shows.

Further analysis has shown hydrocarbon saturations of over 50% in the upper parts of the Dinantian, as well as the occurrence of hydrocarbons from some cutting samples from both the Dinantian and Westphalian levels.

The data supports "the existence of a significant column of good quality oil" in the Dinantian, with the full suite of gases found.

Egdon Managing Director Mark Abbott said: "The results of the revised petrophysical analysis and the Applied Petroleum Technology UK Ltd report have upgraded the Biscathorpe-2 well result, confirming the likely presence of a 35-metre column, of good quality oil, within the Dinantian interval.

"This along with the elevated gas readings and oil shows over an extended interval in the well are indicative of proximity to an effective petroleum system and validate the potential that exists within the PEDL253 licence area."

"The primary target reservoir at Biscathorpe, the basal Westphalian sandstone, was likely absent at the Biscathorpe-2 location and remains untested by the well. Further technical work is planned, including the reprocessing of the existing 3D seismic data, prior to deciding the next steps for the project which could include a side track of the suspended Biscathorpe-2 well," Abbott continued.

"We look forward to updating shareholders further once the results of the 3D reprocessing are finalised."

Egdon shares were 14% higher on Monday morning at a price of 4.85 pence each, with Union Jack rising 4.5% at 0.28p.

By George Collard; georgecollard@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar Rating
Union Jack Oil PLC 0.30 GBX 0.83 -
Egdon Resources PLC 5.10 GBX 0.00 -
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