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Egdon Resources confident over Wressle and shale as production rises

Production from its onshore UK assets rose to 164 barrels per day from 98
oil rig
Resolution is in the southern North Sea

Egdon Resources Plc (LON:EDR) has around 206 billion cubic feet of gas in its Resolution prospect in the southern North Sea according to an independent assessment by Schlumberger.

The UK-focused oil and gas group said it will now look to extend the licence and carry out a 3D seismic survey later this year at both Resolution and its Endeavour discovery in the neighbouring block.

Total gas in place at Resolution ( in the Zechstein reservoir) is 438bcf, with 206.4bcf the 2C contingent resource estimate.

The mean estimate (2C) was lower than the internal assessment of 337bcf but still represented the first independent confirmation of the potential said Egdon.

Results for the half year to January showed production from its onshore UK assets rose to 164 barrels per day from 98 and had risen again to 240 barrels per day between January and March.

Ceres, Keddington and Fiskerton Airfield were responsible for the higher production and guidance for the year is 170-180 boepd.

Elsewhere, drilling at Biscathorpe-2 (Egdon 38.5%) disappointed though results were better from the shale prospect Springs Road-1 (Egdon 14.5% carried interest) in March.

“Springs Road encountered hydrocarbon-bearing shale sequence of over 250 metres in the Bowland Shale and significant gas indications within the Millstone Grit sequence, deeper parts of the lower Bowland Shale and the Arundian Shale.”

At Wressle, current planning consent has been extended to 24 January 2020 following a planning appeal.

Interim revenues doubled to £1.2mln while losses reduced to £724,000 (£845,000).

Philip Stephens, the chairman said he remained confident of a successful outcome at Wressle, while the industry has begun to demonstrate the technical and commercial viability of UK shale gas.

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