Egdon Resources issues positive update from Biscathorpe-2
Egdon Resources
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Egdon Resources issued what it called a “positive update” on Monday on the Biscathorpe-2 exploration well drilled at Petroleum Exploration and Development Licence PEDL253, located in Lincolnshire, where it held a 35.8% interest.
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The AIM-traded firm said the Biscathorpe-2 well was located within the proven hydrocarbon fairway of the Humber Basin, on trend with the Saltfleetby gas field and the Keddington oilfield, which produced oil from a Carboniferous Westphalian aged sandstone reservoir and which was the principal target in the Biscathorpe-2 well.
It said the initial well results were reported on 20 February, adding that during drilling, elevated gas readings were recorded from the Westphalian and below that over the total 157-metre Dinantian Limestone interval, along with the presence of oil shows in both Westphalian and Dinantian cuttings samples.
The Biscathorpe-2 well was suspended to allow the option for a future side-track to be made following the re-processing and re-mapping of up to 85 square kilometres of existing 3D seismic data.
Since reporting the initial well results, further detailed technical analyses of the data from the Biscathorpe-2 well had been undertaken, including an updated petrophysical evaluation by both Egdon and Union Jack's petrophysical consultants, which focussed specifically on the Dinantian.
Those petrophysical analyses indicated hydrocarbon saturations of greater than 50% within the upper parts of the Dinantian.
Union Jack, Montrose Industries and Egdon Resources also appointed independent geotechnical consultants, Applied Petroleum Technology UK, to perform a detailed geochemical analysis of drill cutting samples taken from 20 intervals in the Biscathorpe-2 well, comprising five from the Westphalian and 15 from the Dinantian.
The objective of the APT analysis was to provide geochemical evidence for the presence of live hydrocarbons, together with an estimate of the likely oil quality.
Egdon said the APT Report had confirmed the occurrence of hydrocarbons in the Westphalian and Dinantian cutting samples analysed from the Biscathorpe-2 well.
The APT Report also confirmed that the data supported the existence of a “significant” column of good quality oil within the Dinantian, validated by the presence of a full suite of gases ranging from methane to pentane recorded during drilling, all indicative of a working petroleum system in close proximity to the Biscathorpe-2 well.
A sample of oil from the nearby producing Keddington oilfield to the east of PEDL253 was analysed as a benchmark for comparison with the hydrocarbons extracted by APT from the Biscathorpe-2 cutting samples.
The key results contained in the APT Report included “good quality” hydrocarbon extracts obtained from the Westphalian and Dinantian cuttings samples, with all hydrocarbons extracted appearing to be non-biodegraded.
It said the hydrocarbons extracted were comparable to those extracted from a known oil-bearing Westphalian interval - the Keddington oilfield - with the report confirming the likely presence of a live oil column in the top of the Dinantian interval from approximately 1,980 metres to 2,015 metres, with likely residual oil below.
Data evaluated at the base of the analysed section, and wellsite gas readings, were also suggestive of possible additional hydrocarbon pay below 2,133 metres.
Egdon said the results of the APT report, together with re-processed 3D seismic data, would be integrated to inform the direction of any potential future side-track of the Biscathorpe-2 well that would target the Westphalian and Dinantian.
“The results of the revised petrophysical analysis and the APT Report have upgraded the Biscathorpe-2 well result, confirming the likely presence of a 35 metre column, of good quality oil, within the Dinantian interval,” said Egdon Resources managing director Mark Abbott.
“This along with the elevated gas readings and oil shows over an extended interval in the well are indicative of proximity to an effective petroleum system and validate the potential that exists within the PEDL253 licence area.
“The primary target reservoir at Biscathorpe, the Basal Westphalian sandstone, was likely absent at the Biscathorpe-2 location and remains untested by the well.”
Abbott said further technical work was planned, including the reprocessing of the existing 3D seismic data, prior to deciding the next steps for the project which could include a side track of the suspended Biscathorpe-2 well.
“We look forward to updating shareholders further once the results of the 3D reprocessing are finalised.”