UK: Egdon Resources to spud Biscathorpe-2 well in early 2019
06 Dec 2018
At its Annual General Meeting on Thursday, Egdon Resources provided an update on the planned Biscathorpe-2 well.
Of note are:
- Following completion of site construction - expected in early December 2018 - we will mobilise a conductor rig to set surface casing (the conductor).
- We expect to mobilise the drilling rig immediately in early January 2019 with well completion expected in mid-February 2019.
- The AGM Presentation includes further details on the Biscathorpe Prospect including the estimated range of Prospective Resources, a cross section and a comparison with the geology of the Reepham field some 20km south west of Biscathorpe, just to the west of our Fiskerton Airfield producing oil field.
- At the Reepham oilfield, the Basal Westphalian sandstone reservoir thickens dramatically off a 'structural high' over a very short distance and a similar development of the target reservoir is expected at Biscathorpe-2.
- The chance of success for Biscathorpe-2 remains 40% and the range of Prospective Resources is tabulated below (as estimated by Egdon).
For further information regarding Biscathorpe-2, see Egdon Resources AGM Presentation
Mark Abbott, Managing Director of Egdon Resources, said:
'We look forward to spudding the exciting and potentially significant Biscathorpe-2 well early in the new year into one of the largest remaining undrilled onshore UK oil prospects where stratigraphic trapping - if present - could lead to significant upside for oil resources'.
David Bramhill, Executive Chairman of JV partner Union Jack Oil, which holds a 22% interest in PEDL253, commented:
'We welcome the news of the impending drilling at Biscathorpe-2 and are pleased that the Operator continues to progress activities according to schedule.
Biscathorpe is one of the UK's largest onshore conventional oil prospects with Mean Prospective Resources of 14 million barrels gross and a geological chance of success of 40% in which Union Jack has a meaningful 22% licence interest.
The Company`s economic modelling of the Biscathorpe Prospect highlights its attractiveness and shows a pre-drill value for the success case of circa £24 million net to Union Jack (using the industry standard net present value after tax at a 10% discount rate).
Biscathorpe is one of Union Jack's near-term, high-impact projects and success here will be transformational for our Company. We look forward to reporting on drilling activities at Biscathorpe over the coming months.'
See also: Union Jack Oil Biscathorpe Presentation
Source: Egdon Resources