TIDMEDR
RNS Number : 0958Q
Egdon Resources PLC
04 June 2018
4 June 2018
EGDON RESOURCES PLC
("Egdon" or "the Company")
Acquisition of additional interest in Wressle and Broughton
North
Egdon Resources plc (AIM:EDR) is pleased to announce the
acquisition of an additional 5% interest in PEDL180 and PEDL182,
which contain the Egdon operated Wressle oil discovery and
Broughton North Prospect, from Celtique Energie Petroleum
Limited.
Under the terms of the agreement Egdon will acquire an
additional 5% interest in PEDL180 and PEDL182 from Celtique Energie
Petroleum Limited for a deferred cash consideration of GBP0.417m
payable on commencement of production ("First Oil"). The effective
date for the transaction is 1 January 2018.
Union Jack Oil PLC ("UJO", AIM: UJO) and Humber Oil & Gas
Limited ("Humber", private) will each also acquire 12.50% in both
PEDL180 and PEDL182 from Celtique Energie Petroleum Limited on the
same terms under separate deals.
Egdon will shortly submit a new planning application for the
Wressle development which has the benefit of information from
additional site investigation boreholes and two deeper cored
boreholes to ensure it addresses in detail the matters highlighted
by the Inspector in his Decision Notice to refuse the planning
appeals in January 2018. An application to extend the current
planning consent for the Wressle site was submitted on 13 April
2018.
The transaction is subject to approval from the Oil and Gas
Authority. On completion, the interests in PEDL180 and 182 will
become
Egdon Resources U.K. Limited (Operator) 30.00%
Europa Oil and Gas plc 30.00%
Union Jack Oil Plc 27.50%
Humber Oil & Gas Limited 12.50%
Mark Abbott, Managing Director of Egdon Resources plc, said:
"Today's transaction underlines our confidence in the quality
and deliverability of the Wressle project.
We have been able to add to our existing material interest in
the licences with the consideration deferred to the point of
revenue generation from the Wressle field. The transaction
emphasises our strategy to achieve a balanced business comprised of
revenue generating conventional assets to complement the
high-impact UK unconventional licences within our portfolio."
For further information please contact:
Egdon Resources plc
Mark Abbott 01256 702 292
Buchanan
Ben Romney, Anna Michniewicz 020 7466 5000
Nominated Adviser and Broker - Cantor
Fitzgerald Europe
David Porter/Nick Tulloch (Corporate
Finance)
Caspar Shand Kydd / Alex Pollen (Sales) 020 7894 7000
Joint Broker - VSA Capital Limited
Andrew Monk (Corporate Broking)
Andrew Raca (Corporate Finance) 020 3005 5000
Notes to Editors:
Wressle:
The Wressle-1 well was drilled in 2014 and tested in 2015. The
Wressle-1 well has flowed oil and gas from three separate
reservoirs, the Ashover Grit, the Wingfield Flags and the Penistone
Flags. This totalled 710 barrels of oil equivalent per day from all
zones. In September 2016, a Competent Person's Report made
independent estimates of Reserves and Contingent and Prospective
oil and gas Resources for the Wressle discovery of 2.15 million
stock tank barrels classified as discovered (2P+2C). Further
information can be found at our Wressle Oil and Gas Discovery page
http://www.egdon-resources.com/home/project-sites/wressle/
Broughton North
The Broughton North prospect has gross unrisked Prospective
Resources of 0.51 million stock tank barrels of oil and 0.51 bcf of
gas in aggregate across two reservoir sands: Ashover Grit and
Penistone Flags. Broughton North is a drill-ready prospect, subject
to obtaining planning permission. The Broughton North prospect
benefits from the results of the Wressle-1 oil and gas discovery
and the Broughton-B1 exploration well that significantly reduces
the geological risk over PEDL180 and PEDL182 resulting in a high
Geological Chance of Success with a range assigned by the Competent
Person of 40% to 49%. Mapping of the Broughton North prospect also
benefits from the same high quality 3D seismic data as was used to
identify the Wressle-1 oil and gas discovery.
Wressle Planning history
On 11 January 2017, North Lincolnshire Council refused planning
consent for the original application for the development of the
Wressle Oil Field at Lodge Farm, Wressle, North Lincolnshire.
On 7 February 2017, Egdon announced that it would both appeal
the decision of 11 January 2017 and in parallel submit a new
Planning Application for the Wressle development which would
include even more detailed information to address the specific
concerns outlined by North Lincolnshire Council in their
refusal.
On 11 April 2017, Egdon submitted an appeal against North
Lincolnshire Council's decision to refuse planning consent.
On 28 April 2017, Egdon submitted a new application for the
Wressle Development including additional detailed information to
address the specific concerns raised by North Lincolnshire Council
in its 11 January 2017 decision to refuse the original application
for the development of the Wressle Oil Field.
On 19 May 2017, Egdon announced the issue by the Environment
Agency of the variation to the Mining Waste Permit for the planned
Wressle field development and associated operations.
On 3 July 2017, the new planning application was also refused.
The variation of the existing planning for the site requesting a
twelve month extension was also refused at the same meeting.
During November 2017, a planning inquiry was held to consider
the two appeals for development approval and the appeal of the
variation of the existing planning for the site. On 5 January 2018,
we announced that the Inspector had rejected the appeals by Egdon
against the two planning refusals by North Lincolnshire County
Council's Planning Committee. However, the Planning Inspectorate
did uphold Egdon's appeal against the decision to refuse the
application to retain the existing planning for the well site,
which is was retained until the 28 April 2018.
A new application to extend the current planning consent was
submitted on 13 April 2018.
Egdon Resources plc (LSE: EDR) is an established UK-based
exploration and production company focused on onshore exploration
and production in the hydrocarbon-producing basins of the UK.
Egdon holds interests in 43 licences in the UK and has an active
programme of exploration, appraisal and development within its
portfolio of oil and gas assets. Egdon is an approved operator in
the UK.
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 hydrocarbon volumes 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).
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). Upon the
publication of this announcement via Regulatory Information Service
("RIS"), this inside information is now considered to be in the
public domain.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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