Preliminary analysis of the Lancaster pilot well confirms a continuous oil column below the basement structural closure. An increase in mid-case estimates of Lancaster oil in place and a higher recovery factor, supported by aquifer drive, could potentially lead to a material increase in recoverable resource estimates. We expect third-party validation of resource upgrades on completion of the 2016 well programme. Ahead of validation, we have increased our estimated early production system (EPS) recoverable volumes to the company’s base-case 53mmbbls and assume full field development P50 recoverable volume of 300mmbo. As a result, our RENAV increases from 41p/share to 73p/share (+78%) based on Edison’s long-term Brent crude price of $70/bbl.

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