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Egdon Resources expects fracking to start at East Midlands prospect next year

The company has a 14.5% interest in Springs-1 in the East Midlands, with iGas the operator

IGAs
iGas is the operator at Springs-1

Egdon Resources Plc (LON:EDR) expects fracking to start at the Springs-1 site in the first half of next year.

The company has a 14.5% interest in the East Midlands prospect, with iGas the operator.

READ: Wressle partners Europa Oil & Gas, Egdon Resources and Union Jack react to latest planning disappointment

Springs-1 is to follow iGas’s drilling of the Tinker-1 well, also in the East Midlands, which is scheduled for later this year.

Britain’s shale gas industry received a boost this month when Cuadrilla started fracking at the Preston New Road site near Blackpool, though progress has been hampered by a series of minor earthquakes that have temporarily halted production.

Work was halted yesterday for 18 hours after a 1.1 magnitude tremor, the largest disturbance so far.

Philip Stephens, Egdon’s chairman, said that shale gas [produced by fracking] is a vital commodity to the UK and one that can be produced in an environmentally safe manner.

In the year to July, Egdon's output was 84 barrels per day but is expected to double over in the current six months to 150-180 boepd following the successful recommencement of primary production at Ceres.

“This guidance may increase in the second half depending upon progress with a further workover at Fiskerton Airfield, the outcome of the planning application for the Wressle field development, and other potential activity at currently shut-in fields.”

Losses for the year to July were £1.98mln (££1.7mln). Cash at the year-end was £2.8mln.

Egdon’s conventional oil plans have been hampered by delays to Wressle in Lincolnshire.

An appeal has been launched against the rejection of its planning application.

The consortium that owns the licence, includes Union Jack Oil (LON:UJO) with a 27.5% stake.

Union Jack Oil also owns 22% of Biscathorpe, where Egdon says drilling of a new exploration well should begin before the end of the year with site construction well advanced.

Egdon hopes to drill North Kelsey in 2019 (UK Oil & Gas 20%) if it can find a farm-out partner.

Quick facts: Egdon Resources Plc

Price: 2.98 GBX

AIM:EDR
Market: AIM
Market Cap: £9.04 m
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