31st Mar 2020 06:56
(Alliance News) - Egdon Resources PLC on Monday said economic modelling of Biscathorpe project has indicated a financially robust project even in current low oil price environment.
The Biscathorpe project is a part of PEDL253 licence in Lincolnshire, England, where Egdon holds a 44.75% operated economic interest.
The results of a substantial study on the project has concluded that a possible material and commercially viable hydrocarbon resource remains to be tested, the UK-based oil explorer said.
The gross mean prospective resources associated with the principal Westphalian target of Biscathorpe project are estimated by Egdon to be 3.95 million barrels of oil, with an upside case of 6.69 million barrels. Economic modelling demonstrates that the Westphalian target is economically robust in the current oil price environment with break-even full cycle economics estimated at USD18.07 per barrel and a net present value of GBP55.6 million.
Studies have also identified future identified drill targets at the project, which are accessible via a side-track of Biscathorpe-2 well, which was suspended following drilling operations in 2019.
Union Jack Oil PLC, which owns 27.5% stake in PEDL253 licence, also noted the strong economics of the Biscathorpe project.
Shares in Egdon on Monday closed at 2.15 pence each on Monday, up 10%. Union Jack shares closed at 0.098 pence each, up 3.1%.
By Tapan Panchal; [email protected]
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