Egdon plugs UK wildcat, eyes shale work

Egdon Resources PLC, Odiham, UK, has plugged without testing the Laughton-1 exploratory well on Petroleum Exploration and Development License (PEDL) 209 in Lincolnshire, UK, and says it can proceed with a new phase of exploration that includes shale-gas potential (OGJ Online, Feb. 15, 2016).

The conventional well reached 1,700 m TD and had hydrocarbon shows in several Carboniferous intervals. Reservoir development was poor in the main objective, Carboniferous Silkstone Rock, which is productive in Corrington oil field 5 km southeast.

Egdon Managing Director Mark Abbott said drilling of the Laughton-1 fulfilled the company’s commitments under a 2013 farm-out from Blackland Park Exploration Ltd. and Stelinmatvic Industries Ltd. in which Egdon agreed to pay 100% of the drilling costs to earn a 60% interest in PEDL 209 and become operator.

Egdon later farmed out a 10% interest in Laughton-1 and two other conventional prospects on the license to Union Jack Oil PLC, which agreed to pay 16.67% of the well cost.

After the drilling of Laughton-1, interests in the Laughton prospect and two other conventional prospects are Egdon 50%, Blackland Park 28%, Stelinmatvic Industries 12%, and Union Jack 10%.

“This completes the work commitment for the license’s first term and allows it to proceed into its second term during which the remaining conventional and unconventional hydrocarbon potential will be further evaluated,” Abbott said.

Total E&P UK Ltd. has an option to farm into PEDL 209 for 50% by paying £13.47 million for an exploration program separate from the three conventional prospects and targeting shale-gas potential thought to extend from nearby PEDLs 139 and 140.

After exercise of the option, other license interests in unconventional resources would be Egdon 30%, Blackland Park 14%, and Stelinmatvic Industries 6%.

Total E&P UK farmed into PEDLs 139 and 140 for 40% interests in 2014. Egdon holds 14.5% interests in those licenses.

The target there is the Carboniferous Lower Pendleian shale in the Gainsborough Trough, which corresponds in age with the Bowland–Hodder shales under evaluation in the Bowland basin of Northwest England.

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