Springs Road Update – Resource Density in Bowland Shales

Egdon Resources plc is pleased to note the announcement made this morning by IGas Energy plc (“IGas”) of its First Half 2019 Results and associated presentation which provides further details of results from the analysis of whole core from the Springs Road-1 (“SR 01”) well on licence PEDL140, in which Egdon holds a 14.5% interest.The IGas release states;“ We mobilised the equipment to our Springs Road development in North Nottinghamshire in early January 2019 and spudded the well on 22 January 2019. In mid-February 2019, we encountered shales on prognosis, at c.2,200 metres depth and drilled through a significant hydrocarbon bearing shale sequence, including the upper and lower Bowland Shale.The well sought to assess three target zones: the Bowland Shale; the Millstone Grit and the Arundian Shale. All three targets were encountered, with 429 metres of hydrocarbon bearing shales encountered within the primary target, the Bowland Shale.IGas acquired 147 metres of core within the Bowland Shale, the first extensive core sample from this basin, which has subsequently been analysed by Stratum Reservoir (formerly Weatherford Labs) in their laboratories in both the UK and the USA.The results from the core analysis are extremely positive and confirm that a significant hydrocarbon resource is present in the Gainsborough Trough. Following further detailed analysis, the core results are as follows:SR-01 Upper BowlandSR-01 Lower BowlandOrganic content3.2% (0-8.4%)2.5% (0-6.6%)Maturity (Ro)c. 1.17%c.1.29%Shale thickness179m305mApprox. depth2,109-2,288m2,288-2,593mClay content43%22%Matrix porosity4.8% (1-11%)3.0% (1-9%)Natural fracturingYesYesEstimated GIIP bcf/Sq mile* (Adsorbed and free)*231409*volumetric estimates based on SR-01 data only, no regional data has been incorporated and as such does not account for thickness variations and reservoir heterogeneity within the basin. Secondary (Millstone Grit) and tertiary (Arundian shale) targets excluded.”A presentation including slides on Springs Road -1 core data analysis will be available later today at IGas’ website http://www.igasplc.com/Commenting on these results, Mark Abbott, Managing Director of Egdon Resources plc, said:“We continue to be encouraged by the results from Springs Road-1, particularly the combined Bowland shale gas in place of 640 bcf/square mile (“the resource density”).  This is more than three times Egdon’s previous external estimates of the mean resource density for the entire Bowland Shale section in PEDL139/140 as reported by ERCE in 2014.The results from this extensive modern dataset demonstrate that the Bowland Shale of the Gainsborough Trough, where Egdon currently holds 82,000 net acres (128 square miles), compares favourably with some of the best US commercial shale plays and is potentially world class.   We look forward to sharing further data on the well as it become available, particularly on the secondary target, the tight gas sands of the Millstone Grit”