Egdon Resources has provided an update on its Biscathorpe project (45% interest) in Lincolnshire. The company has integrated reprocessed 3D seismic data with data from the 2019 Biscathorpe-2 well and concluded that the project holds a potentially material and commercial resource. Management estimates that the project is robust at the current oil price with an NPV10 break-even Brent price of $18.07/bbl for the primary Westphalian target. In addition, the company sees significant commercial upside in the secondary Dinantian carbonate. Egdon retains the option to test the potential of any future drill targets via a side-track of the suspended Biscathorpe-2 well.
The integration of the 3D seismic and Biscathorpe-2 well data has significantly improved Egdon’s understanding of the prospectivity of the project area. The work has identified target areas of thickened Westphalian reservoir that are accessible through a side-track of Biscathorpe-2. This side-track could also target the 57m oil column logged in the underlying Dinantian carbonate.
The company estimates that the Westphalian holds mean prospective resources of 3.95mmbbl, with an unrisked gross NPV10 of £55.6m. In addition, the Dinantian is estimated to hold 24.3mmbbl of gross mean stock tank oil initially in place and the side-track would need to establish the presence of either an effective permeability or fractures for the Dinantian to be commercially viable. We currently do not attribute any value to the Biscathorpe project as the Westphalian Sandstone encountered was found to be thin and poorly developed and the potential thicker sands have not been proven yet.