Project Profile
Value: Undisclosed
Location: East Midlands Petroleum Province, northern margin of the Gainsborough Trough geological basin, Lincolnshire, East of England, UK
Start-up Year: -
Egdon Resources plc has signed an Exploration Option and Farm-in Agreement with Scottish Power Generation Limited (SPG) in respect of UK Onshore Production Licences PL161 (Block SE/60b) and PL162 (Blocks SE/70a and SE/80b) located in Lincolnshire at East of England. The Agreement defines an \"Exploration Area\" which excludes those parts of PL161 and PL162 which relate to the Hatfield Moor and Hatfield West gas storage facilities, both operated by SPG. Under the terms of The Agreement SPG granted Egdon an Option Period of twelve months from December 2013, by the end of which Egdon was required to either advise SPG of its intention to commit to the drilling of an exploration well in the Exploration Area (the Option Well) or else terminate The Agreement.
Egdon confirmed it would exercise its farm-in option in December 2014 after a full evaluation of hydrocarbon potential in the licence areas produced encouraging results. The arrangement will now expire in December 2018.
During the Option Period, Egdon will undertake, at its own cost and risk, a full evaluation of the hydrocarbon potential of the Exploration Area to include reprocessing all relevant existing 2D seismic data, evaluation of all available well data, and generation of a full review and report on the hydrocarbon prospectivity of the Exploration Area. In the event that Egdon commits to drill the Option Well, Egdon will meet the full cost of the drilling and evaluation of the well to the point of either abandonment or suspension in the case of a discovery. Egdon will earn a 50% working interest in the Exploration Area through the drilling of the Option Well and will become Operator of the Exploration Area.
PL161 and PL162 are located in the East Midlands Petroleum Province, on the northern margin of the Gainsborough Trough geological basin. The licences contain the Hatfield Moor and Hatfield West gas fields which produced gas from sandstones of Carboniferous age from the 1980s. The two fields are now depleted and are operating as gas storage facilities. In addition, five exploration wells were drilled in the Exploration Area between 1973 and 1978. The company\'s preliminary regional evaluation has indicated the potential for there to be both undiscovered conventional and unconventional oil and gas resources within the Exploration Area.
Operators:
Egdon Resources plc: Operator with 50% interest
Scottish Power Generation Limited (SPG): 50% interest