Industry

New application for Wressle oil site and £0.85m half-year loss – Egdon accounts

wressle-site-plan-application-to-nlc

Egdon Resources has confirmed it has made a new planning application for its Wressle oil site near Scunthorpe.

The company wants to develop long-term oil production at the site. But last year it was turned down twice by North Lincolnshire Council and at the start of this year it lost two planning appeals.

The planning inspector, Keri Williams, said Egdon had not shown that unacceptable adverse impacts to groundwater and water courses would not arise from the oil production proposals at Wressle (link to details)

In half year accounts to the end of January 2018, released yesterday, Egdon said it had submitted an application on 13 April 2018 to extend the existing consent for the Wressle site for another 12 months. The application is not yet listed on North Lincolnshire’s online planning site. Under the current permission, Egdon must restore the site by 28 April 2018.

In the accounts, Egdon also said it expected to submit another application within the next month for developing the site. It said the application would be informed by a site investigation borehole and two deeper cored boreholes.

The chairman, Philip Stephens said:

“After many setbacks, we hope to be successful in gaining planning permission in order to allow us to develop our conventional oil discovery at Wressle.”

Other developments

At Fiskerton Airfield, where Egdon has an 80% interest, it said workovers at two wells had increased production by 14 barrels of oil per day (bopd) to about 30 bopd.

It also said it had farmed out interests in the Biscathorpe PEDL253 in Lincolnshire to Union Jack Oil and Humber Oil & Gas. The Biscathorpe well is due to be drilled in mid-2018, Egdon said.

Egdon has interests in the Holmwood site in Surrey, also known as Bury Hill Wood or Leith Hill. It forecast that the well there would be drilled later in 2018. The site’s construction traffic management plan has still to be confirmed and the Environment Agency has to confirm the environmental permit.

Egdon said it has a net interest in 205,800 acres of unconventional licences across northern England.

The best known is a 14.5% share in the IGas-operated shale site at Springs Road, Misson in north Nottinghamshire where drilling on the first of two wells is expected to start in the second half of the year.

Mr Stephens said:

“Whilst challenges no doubt remain, the UK shale business is gaining considerable traction with the completion recently of the first horizontal shale gas well in Lancashire. With an increased level of industry activity due to take place over the coming months, we believe the spotlight will shine more brightly on this exciting space, and Egdon’s sizeable acreage position ensures we represent a compelling vehicle for investors to benefit from the eventual uptick in much needed onshore activity.”

Mr Stephens added:

“We have recently experienced unusually adverse weather conditions in the UK and this has highlighted the potential vulnerability of energy supply to this country. In this context, the development of indigenous onshore UK oil and gas production seems to us to have an ever more vital role to play alongside development of renewable sources of energy.”

Financial details

The company released information on production and its balance sheet for the second half of 2017.

Production volumes were slightly up on the first half of 2017 but revenue was exactly the same and losses were up. Cash at the bank and net assets were both down. The company said it had no debt.

Key figures

Producing fields: Ceres, Keddington, Avington and Fiskerton

Production: 17,962 barrels of oil equivalent; H1 2017: 16,882

Production in barrels of oil equivalent per day: 98; H1 2017: 94

Oil and gas revenues: £0.51m; H1 2017: £0.51m

Loss for the period: £0.85m; H1 2017: 0.73m

Cash at bank: £4.10m; H1 2017: £6.80m

Net current assets: £5.08m; H1 2017: £8m

7 replies »

  1. All the council can do is delay it!

    Absolutely nothing wrong with the proposals what so ever! It got rejected for 3 minor reasons which could easily have been fixed by the company and planning granted. If it gets rejected this time, I would be surprised if Egdon didn’t go for costs with the council! Which would be millions now!

    Keri Williams had told Edgon exactly what needs to be done for approval and I’m sure they have addressed this in the new application.

    It would be a stupid mistake from the council if they were to reject it this time round.

    Absolutely nothing wrong with their conventional oil plans which are in line with national planning laws. Im really fed up with these NIMBYS who protest against FRACKING when most sites aren’t actually doing this technique of extraction. The Geology in northern lincolnshire hasn’t got SHALE!!!

    Egdon’s financial figures have taken a massive hit because of the delays yet i am highly optimistic they will be positive this time next year after the approval of wrestle and the restart of Ceres! (more than trebling edgons starts now)

    GG

  2. allow them to actually make a profit and they will be paying TAX!!! Stop delaying! The UK is absolutely useless with everything!

  3. Oil prices still rising, and some suggest might approach the $100/barrel in the near future.

    Stability of oil supply from Mid East and other areas very suspect.

    This will go ahead, and once it does, most locals will forget it is there-just like other sites in the area.

    Perhaps the councillors can then get on with clearing up the contamination from the missile sites that still exists from the Cold War days!

  4. All very interesting John, except this site is standard and OIL! OPEC still trying to move prices up to $100/barrel, coming shortly at your local fuel station.

    Mind you, anyone looking at this item, and interested in fracking for gas, might have enough grey cells to realise that when the antis rely on a Greenpeace “unearthing” from over 3 years ago speculating on costs of gas they have little credibility. If anyone can accurately predict gas cost/prices 6 months ahead they can make a fortune. Many try, some do, and some don’t and lose a fortune. But keep on speculating John. I will, for the moment, be more inclined to watch a large UK purchaser of fracked gas investing into UK fracking for gas, as an indicator that someone is doing a little “speculating” with a more detailed knowledge of the economics.

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