TIDMEDR
RNS Number : 0569D
Egdon Resources PLC
04 July 2016
4 July 2016
EGDON RESOURCES PLC
("Egdon" or "the Company")
UK Licence Changes
Egdon Resources plc (AIM:EDR) is pleased to advise that the Oil
and Gas Authority ("OGA") has approved various licence extensions
and conversions of licences to new model terms, and the
relinquishment of one Egdon operated licence.
The OGA has offered holders of existing UK Onshore licences the
opportunity to adopt 14(th) Round licence terms which allow
licensees to nominate areas to be retained in exchange for
additional work programmes. Egdon has elected to follow this path
on four operated licences and one further non-operated licence
where the partnership has also decided to accept the new licensing
terms.
Cleveland Basin
-- The first term of licence P1929 (Egdon 100%) covering UKCS
Blocks 41/18 + 41/19 and containing the "A Prospect" has been
extended by two years to 19 April 2019 to allow time for Egdon to
secure the required permits and to plan and drill a well from an
onshore location to appraise this 1966 gas discovery. It has not
been possible to complete this process without an onshore licence
over the drill-site although this will be addressed by the award of
new 14(th) Round licences to Egdon, and we currently expect to
finalise and submit a planning application to drill when these new
licences are confirmed.
East Midlands
-- The first six year term for PEDL241 (Egdon 80%) containing
the drill-ready North Kelsey oil prospect has been extended by one
further year to 30 June 2017. (Egdon Resources UK Limited 80% and
Union Jack Oil plc 20%)
-- The first term for PEDL253 containing the drill-ready
Biscathorpe oil prospect has been extended by one further year to
30 June 2017. (Egdon Resources UK Limited 52.8%, Montrose
Industries Limited 35.2% and Union Jack Oil plc 12%)
-- PEDL201 has adopted the new 14(th) Round licence terms and
will continue without further relinquishment. (Egdon Resources UK
Limited 32.5%, Celtique Energie Petroleum Ltd 32.5%, Corfe Energy
Limited 12.5%, Terrain Energy Limited 12.5% and Union Jack Oil plc
10%)
-- PEDL202 has adopted the new 14(th) Round licence terms and
will continue without further relinquishment. (Egdon Resources UK
Limited 100%)
-- PEDL209 has adopted the new 14(th) Round licence terms and
will continue without further relinquishment. (Egdon Resources UK
Limited 50%, Blackland Park Exploration Limited 28%, Stelinmatvic
Industries Limited 12% and Union Jack Oil plc 10%)
NW England
-- PEDL191 has adopted the new 14(th) Round licence terms and
will continue without further relinquishment. (Egdon Resources UK
Limited 100%)
Relinquishment
PEDL237 in the Wessex basin has been relinquished as the
partners concluded that the bulk of the prospectivity in the area
lay in PL090 surrounding Waddock Cross and that resources should be
concentrated on that asset.
Non-operated licence changes
We note operator Europa Oil & Gas plc's announcement that
PEDL181 (Egdon Resources UK Limited 25%) in the Humber Basin will
continue into its second term following the completion of first
term work commitments and partial relinquishment.
IGas operated PEDL169 has adopted new 14(th) Round terms and
will continue without further relinquishment. (IGas 80%, Egdon
Resources UK Limited 20%)
Commenting on the changes, Mark Abbott, Managing Director of
Egdon Resources plc, said:
"Following on from the recently announced extension of the
Europa operated licence PEDL143 containing the Holmwood prospect,
we are pleased to have also been allowed additional time to drill
our exciting operated onshore oil prospects at North Kelsey and
Biscathorpe, and the offshore "A Prospect" which Egdon estimates
may contain recoverable reserves of approximately 160 billion cubic
feet of gas.
In addition we are pleased to have been able to adopt the new
14(th) Round terms for several of our existing licences which will
allow us to further evaluate the unconventional resource potential
of the retained areas.
The relinquishment of PEDL237 is in line with Egdon's strategy
to focus on fewer, high potential areas."
For further information please contact:
Egdon Resources plc
Mark Abbott 01256 702 292
Buchanan
Richard Darby, Anna Michniewicz 020 7466 5000
Nominated Adviser and Broker - Cantor Fitzgerald Europe
David Porter, Sarah Wharry (Corporate Finance) 020 7894 7000
Mark Westcott (Sales)
Joint Broker - VSA Capital Limited
Andrew Monk (Corporate Broking) 020 3005 5000
Andrew Raca (Corporate Finance)
Notes to Editors:
Egdon Resources plc (LSE: EDR) is an established UK-based
exploration and production company primarily focused on onshore
exploration and production in the hydrocarbon-producing basins of
the UK and France.
Egdon currently holds interests in thirty six licences in the UK
and France and is awaiting the issue of a further nine new UK
licences in the 14th Round. The Company has an active programme of
exploration, appraisal and development within its balanced
portfolio of oil and gas assets and is an approved operator in both
the UK and France.
Egdon was formed in 1997 and listed on AIM in December 2004.
In accordance with the AIM Rules - Note for Mining and Oil and
Gas Companies, the information contained in this announcement has
been reviewed and signed off by the Managing Director of Egdon
Resources plc Mark Abbott, a Geoscientist with over 26 years'
experience.
Evaluation of potential recoverable hydrocarbons has been
assessed in accordance with 2007 Petroleum Resources Management
System prepared by the Oil and Gas Reserves Committee of the
Society of Petroleum Engineers (SPE) and reviewed and jointly
sponsored by the World Petroleum Council (WPC), the American
Association of Petroleum Geologists (AAPG) and the Society of
Petroleum Evaluation Engineers (SPEE).
This information is provided by RNS
The company news service from the London Stock Exchange
END
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