Egdon and IGas have provided a summary of initial analysis of the core extracted from Springs Road-1 (SR-01), in which Egdon holds a 14.5% interest. The well was drilled as a vertical exploration well in the centre of the Gainsborough Trough Basin where Egdon holds 82,000 net acres. The Bowland Shale, the Millstone Grit and the Arundian Shale were encountered with 429m of hydrocarbon bearing shale (147m cored) within the Bowland. Core analysis is positive with key shale characteristics comparable to commercial shales found in North America. High clay content was viewed as a risk pre-drill but the company believes that average clay content of below 30% should ensure the rock can be effectively fracture stimulated.
SR-01 total organic content of average 3% (ranging from 2-7%) is consistent with the averages of the top ten US shales which range from 0.9% to 5.3%. Thermal maturity at an average 464degC puts SR-01 shale in the wet gas to dry gas window. Total porosity of average 4% (range 2-9%) is comparable to US analogue shales which typically range from 4-7%. Gas content at an average 71scf/ton (range 24-131scf/ton) compares to a range of 15-350scf/ton typically seen in the US. Average clay content of 30% by weight (in The Carboniferous Bowland Shale gas study: geology and resource estimation – 2013, BGS states that clay content should be below 35% to facilitate fracture stimulation) is considered as low. From an operational perspective it is encouraging that SR-01 well costs came in 20% below budget; however well costs have not been released at this stage.