Egdon reports positive progress at Wressle-1

The AIM-traded firm said plans had been made to reduce production constraints and define the plateau rate at Wressle-1.

Planning application for the side-track drilling, testing and production at Biscathorpe, meanwhile, was set to be heard in November.

Elsewhere, Egdon said Shell UK had advised that the 3D seismic survey over the Resolution and Endeavour gas discoveries had been delayed beyond February 2022.

Detailed well design, facilities specification, and commercial modelling was nearing completion for the phased redevelopment of the shut-in Waddock Cross oil field, meanwhile, with a final investment decision expected to be made by the end of 2021, which could lead to further drilling activity during 2022.

At the same time, detailed reservoir engineering work was underway at Keddington to support target selection for a side-track development well, which could be drilled in 2022 and access gross mean contingent resources of 567,000 barrels of oil, which remained to be produced.

A programme to plug and abandon the existing Dukes Wood-1 oil well and recomplete that for geothermal heat production had been developed, and would shortly be submitted to the Health and Safety Executive.

“The Wressle well test operations continue to exceed our expectations with instantaneous rates of over 950 barrels of oil equivalent per day achieved so far,” said managing director Mark Abbott.

“The well has already begun to yield a material revenue stream which will transform the financial position of Egdon in the coming period.

“This production rate means that Wressle is currently the second biggest field in terms of daily production in the onshore UK after Wytch Farm, and we are confident that the well has more to give in the coming period.”

Abbott said the company was awaiting confirmation from Shell regarding the next steps for the Resolution 3D seismic, adding that it was “optimistic” about the long-term potential of the “long-burner project” for Egdon.

“Elsewhere in our portfolio, we are making good progress with several nearer-term projects capable of adding further production, revenues and value to the business.

“We are pleased to see activity gaining momentum across the portfolio and look forward to an active year ahead.

“I am also pleased with progress in our nascent geothermal business with plans being advanced for repurposing of the Dukes Wood-1 well and wider opportunities being considered.”

At 1121 BST, shares in Egdon Resources were up 15.25% at 1.7p.