Egdon Resources PLC Acquisition of additional interest in PEDL068 (7217H)
August 22 2016 - 1:00AM
UK Regulatory
TIDMEDR
RNS Number : 7217H
Egdon Resources PLC
22 August 2016
22 August 2016
EGDON RESOURCES PLC
("Egdon" or "the Company")
Acquisition of additional interest in PEDL068
Egdon Resources plc (AIM:EDR) is pleased to announce that it has
reached agreement to acquire an additional 20% interest in
Petroleum Exploration and Production Licence PEDL068 from DESS
Energy Limited ("DESS") bringing our total interest to 68%. Egdon
is operator of PEDL068 which is located in the Cleveland Basin of
North Yorkshire. This transaction follows DESS' acquisition of
Sterling Resources (UK) Limited's 47% interest in the licence.
As consideration for this acquisition, Egdon will bear DESS's
retained 20% share of ongoing expenditure for the next six months
and in addition will accept liability for DESS's 20% share of the
existing abandonment liability for the Kirkleatham site and
Kirkleatham-1 well, but not for any future works. Egdon estimate
that this transaction will add approximately 1.75 bcf of Best
Estimate Contingent and Prospective Conventional Resources to its
portfolio.
Under a separate transaction, DESS has also sold a 5% interest
to existing PEDL068 partner Montrose Industries Limited.
The acquisition is subject to approval by the Oil and Gas
Authority ("OGA"). On completion of these transactions the
interests in PEDL068 will be as follows:
Egdon Resources U.K. Limited 60.00%
DESS Energy Limited 22.00%
Yorkshire Exploration Limited* 8.00%
Montrose Industries Limited 10.00%
*wholly owned subsidiary of Egdon Resources
Licence PEDL068, is located in the Cleveland Basin of North
Yorkshire and contains the Kirkleatham gas field, which is shut-in
pending the potential drilling of a side-track well to target an
un-drained portion of the field up-dip from the existing producer
well. Planning consent has recently been extended for Kirkleatham
and allows for drilling and production from a further two wells at
the site. The licence also contains the Westerdale/Ralph Cross gas
discovery where planning consent is in place for an appraisal well.
Exploration in PEDL068 to date has concentrated on Permian age
limestone gas plays but the licence also contains prospectivity in
deeper Carboniferous age sandstones.
Commenting on the acquisition, Mark Abbott, Managing Director of
Egdon said:
"This acquisition builds on our existing interest in PEDL068,
adding additional resource potential to the Company at low cost and
complements our pending award of surrounding licence PEDL259 in the
14th Onshore Licensing Round in what was a highly sought after
region."
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)
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).
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.
In November 2014, Egdon acquired the entire issued share capital
of Yorkshire Exploration Limited ("YEL"). YEL is a private company,
which holds an 8% interest in Petroleum Exploration and Production
Licence PEDL068.
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 14(th) 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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