Springs Road-1 Operational Update – Over 250 metre Hydrocarbon Bearing Shale Sequence Encountered

Egdon Resources plc is pleased to note the announcement made this morning by IGas Energy plc (“IGas”) which summarises the results from the initial phase of drilling operations at the Springs Road­1 (“SR-01”) well on license PEDL140, in which Egdon holds 14.5% interest.The IGas release stated;“IGas is pleased to announce an update regarding the SR-01 well at Springs Road in North Nottinghamshire.Further to our announcement on 15 February 2019, we have now encountered a hydrocarbon bearing shale sequence of over 250 metres, including the upper and lower Bowland Shale. Significant gas indications were observed throughout the shale section and additionally within sands in the Millstone Grit sequence.   A video showing some recovered core from the well effervescing gas when immersed in water can be viewed here: https://youtu.be/dnZDrTLWiyQ and on the website at www.igasplc.comWe have now completed this phase of data acquisition which included the recovery of approximately 150m of shale core and an extensive wireline logging program across the Millstone Grit, and Upper and Lower Bowland Shale. Petrophysical and core analysis is currently being conducted, which will give us further insight into the resource potential and shale characterisation that will be utilised for future appraisal and development of the wider East Midlands area. We will give a further update following the completion of the majority of the analysis in Q2.Having encountered both primary and secondary targets on prognosis we are now drilling into the tertiary target, to prove up the potential for multiple hydrocarbon bearing horizons within the Gainsborough Trough.The rate of drilling at Springs Road has been quicker than anticipated, building on our learnings and operating efficiencies from Tinker Lane.The analysis of the Tinker Lane core samples is still ongoing.Commenting, Stephen Bowler, CEO said:“I am delighted to report that we have recovered high quality hydrocarbon bearing cores at our Springs Road site. The data gathered to date shows that there are significant prospective resources in our East Midlands acreage and is another important step for the UK onshore industry. There is the potential for the gas beneath our feet to contribute materially to the UK energy needs. Gas is important for our energy requirements, not least because over 80% of the homes across the county are heated by gas. These results come at a time when we are importing more and more gas from overseas and could stimulate investment in the East Midlands basin as well as improving the country’s balance of payments.”Commenting on the announcement Mark Abbott, Managing Director of Egdon Resources plc, said:“These initial results from the Springs Road-1 well are highly encouraging for both PEDL140 and the wider potential of Egdon’s extensive licence portfolio in the East Midlands. We now look forward to the results from the drilling of the deeper sequences in the Springs Road-1 well over the coming weeks and the detailed analysis of the core and log data acquired to date in the coming months. However, these positive results from Springs Road-1 when added to those from Tinker Lane-1 appear to validate our strategic focus on the Gainsborough Trough where the Company holds interests in 82,000 net acres.It is clear from these and other recent results that UK onshore gas has the potential to reduce the UK’s increasing dependency on gas imports over the coming decades, with both economic and environmental benefits to the country.”Link to Gainsborough Trough page