TIDMEDR
RNS Number : 4060F
Egdon Resources PLC
09 March 2020
9 March 2020
EGDON RESOURCES PLC
("Egdon")
East Humber Basin Update - Keddington, Keddington South and
Louth
Egdon Resources plc (AIM:EDR, "Egdon" or "the Operator") notes
the announcement made this morning by Union Jack Oil plc ("UJO" or
"the Company") on their acquisition of an additional 35% interest
in the producing Keddington Oilfield PEDL005(R) and a 15% Interest
in PEDL339 from Terrain Energy Limited. ("Terrain").
Egdon holds a 45% interest in PEDL005(R) and a 65% interest in
PEDL339 and is the operator of both licenses.
The UJO release refers to technical work undertaken by Egdon on
PEDL005(R) and PEDL339 and included the following statements by UJO
which are of relevance to Egdon's shareholders:
"Keddington, currently producing approximately 28 barrels of
high-quality oil per day from Carboniferous age sandstone
reservoirs, is located along the highly prospective East Barkwith
Ridge, an east-west structural high on the southern margin of the
Humber Basin.
A detailed, in-depth subsurface review of the Keddington field
and the surrounding licence area was conducted by Egdon during
2019, resulting in a fully audited and consistent data set that
supports updated resource estimates generated by the Operator.
These geological and geophysical studies indicate that
potentially significant resources remain unswept at Keddington,
highlighting an excellent opportunity to increase production
volumes multi-fold by the drilling of a relatively inexpensive
development well from the existing production site. The gross
remaining Mean Contingent Resource at Keddington is 567,000 bbls of
oil "
Egdon "is finalising the assessment of potential in-fill
drilling locations at Keddington with a view to targeting a
side-track drilling location.
The Keddington site lease has been extended until 2029. Current
planning consent expires in 2058, with approval in place for the
drilling of a further two wells.
In addition to the unswept resources in Keddington, a near-field
exploration opportunity exists at Keddington South, which has a
gross Mean Prospective Resource Volume of 635,000 bbls of oil.
As part of this acquisition, the Company is also acquiring a 15%
interest in PEDL339 into which the Louth Prospect, with a gross
Mean Prospective Resource of 600,000 bbls of oil, extends from
PEDL005(R). Significant additional Prospective Resources, both for
oil and gas also exist over the licence areas and includes the
North Somercotes Prospect".
Commenting on the updated work reported in the UJO release, Mark
Abbott, Managing Director of Egdon Resources plc, said:
"We are encouraged by the results of the subsurface review of
our eastern Humber Basin licences which has identified a new
low-risk near-field exploration opportunity at Keddington South,
additional resources in our producing Keddington oil field and
confirmed low risk resources at Louth.
We believe these opportunities can be targeted by drilling from
the current Keddington location and present a number of
low-risk/low-cost drilling opportunities for Egdon.
We welcome UJO's increased participation in the licences and
continued technical contribution and thank Terrain for their active
involvement to date."
For further information please contact:
Egdon Resources plc
Mark Abbott / Martin Durham 01256 702 292
Buchanan
Ben Romney, Chris Judd 020 7466 5000
Nominated Adviser and Joint Broker - Cantor Fitzgerald
Europe
David Porter/ Rick Thompson (Corporate Finance) 020 7894 7000
Caspar Shand Kydd (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 focused on onshore exploration
and production in the hydrocarbon-producing basins of the UK.
Egdon holds interests in 44 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.
Qualified Person Review
In accordance with the AIM Rules - Note for Mining and Oil and
Gas Companies, this release has been reviewed by Mark Abbott,
Managing Director of Egdon, who is a geoscientist with over 30
years' experience and is a member of the Petroleum Exploration
Society of Great Britain and a Fellow of the Geological Society. Mr
Abbott has consented to the inclusion of the technical information
in this release in the form and context in which it appears.
Evaluation of hydrocarbon volumes has been assessed in
accordance with 2018 Petroleum Resources Management System (PRMS)
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), the Society of Petroleum Evaluation
Engineers (SPEE), the Society of Exploration Geophysicists (SEG),
the Society of Petrophysicists and Well Log Analysts (SPWLA) and
the European Association of Geoscientists & Engineers
(EAGE).
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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