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All of EnCore’s onshore licences are part of the transaction which will see the licences transferred to Egdon Resources in return for a significant share holding in Egdon. The agreements relating to this transaction have been signed but the transaction has not yet completed. Please see the press releases dated 22 March 2010 and 23 September 2009 for further information on the transaction.

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EnCore has a 20% interest in onshore licence PEDL068 operated by Egdon Resources. Two prospects and three leads have been identified within Permain age Zechstein carbonates and Carboniferous age sandstone reservoirs.

Kirkleatham Prospect

The Kirkleatham structure is located to the west of the town of Redcar and was originally tested by the Kirkleatham 1 and 2 wells in 1945 and 1946.  These produced sub-commercial quantities of gas.  In January 2006, the Kirkleatham-4 Well tested the Kirkleatham structure and encountered a 62 foot hydrocarbon column within Cadeby Formation carbonates.  

In March 2006, testing operations on the Kirkleatham-4 well confirmed the presence of good quality gas.  Gas flowed at up to 5 million standard cubic feet per day through a restricted choke and the well was retained for future production.

In January 2009, outline terms were agreed for gas sales from Kirkleatham  to be used for power generation on the Wilton site. A planning application was approved in August 2009 and Egdon is targeting first gas sales by October 2010.

Westerdale Prospect

The Westerdale structure is located in the south of Licence PEDL068.  The structure was originally tested by the Ralph Cross-1 Well which tested sub-commercial quantities of gas from Zechstein age carbonates.  In February 2006, the Westerdale-1 Well evaluated a separate part of the Westerdale structure and  encountered gas within Zechstein carbonates and Carboniferous sandstones.

In March 2006, testing operations on the Westerdale-1 well confirmed the presence of gas.  Potential gas pay was interpreted within two intervals; the Permian age Brotherton carbonate at a depth of 905 metres, and the Carboniferous sandstones at a depth of 1,188 metres.

In the initial, unstimulated tests, gas flowed at up to 130,000 cubic feet per day from the Brotherton interval.  This result should be considered inconclusive as the normal practice when testing a gas discovery of this type is to use acid stimulation in the test.  Due to the planning consent time constraints, this was not possible.  A short test of the Carboniferous confirmed the presence of gas, but only sub-commercial flow rates were achieved.

EnCore news releases on the Cleveland Basin:

22 March 2010 - Sale of Assets to Egdon Resources

23 September 2009 - Potential Asset Divestment

25 June 2009 - Activity update

3 April 2006 - Operations Update on Westerdale

15 March 2006 - Operations Update: Kirkleatham-4 Confirmed as Gas Discovery 21 February 2006 - Westerdale-1 and Kirkleatham-4 Operations Update