Egdon Resources Ltd has been granted more time to drill PEDL241, containing the North Kelsey-1 well in Lincolnshire.
EXTENSION
Operator Egdon holds 80% and Union Jack Oil plc 20% in the licence.
Lincolnshire County Council first granted temporary planning permission to drill an exploratory conventional oil in 2014.
Egdon has now been given a further extension of 12 months to 31 December 2021.
NORTH KELSEY
The North Kelsey prospect has been mapped from 3-dimensional seismic data and has potential for oil in up to four stacked conventional Carboniferous reservoir targets: the Chatsworth Grit, Beacon Hill Flags, Raventhorpe Sandstone and Santon Sandstone.
Egdon has calculated the prospective resources to range from 4.66 million barrels up to 8.47 million barrels, with a mean resource volume of 6.47 million barrels.
FRACKING
Both companies said operations would not involve hydraulic fracturing, or fracking, for shale gas or shale oil.
They added that the area did not have the specific rock formation types containing shale gas as confirmed by the British Geological Survey in 2013.
PROGRESS
Egdon’s managing director, Mark Abbott, said today’s council decision would enable the company to progress drilling plans which had been delayed by Covid-19 restrictions.
“We will now progress our plans for drilling during 2021, providing a further potentially material near-term value catalyst for Egdon.”
COMPANIES
Egdon is an independent onshore focused oil and gas exploration and production business with 44 licences in proven oil and gas producing basins in the UK.
It has a portfolio of production, development, appraisal and exploration projects in conventional and non-conventional hydrocarbons.
Union Jack Oil plc is an onshore oil and gas exploration company focused on drilling, development and investment opportunities in the UK’s hydrocarbon sector.
The company has interests in 13 licences in the East Midlands, Humber Basin and East Yorkshire.