Egdon Resources PLC Shell Farm-in Update (0051X)
August 25 2020 - 01:00AM
UK Regulatory
TIDMEDR
RNS Number : 0051X
Egdon Resources PLC
25 August 2020
25 August 2020
EGDON RESOURCES PLC
("Egdon" or "the Company")
Completion of Shell Farm-in to Licences P1929 and P2304
Egdon Resources plc (AIM:EDR) is pleased to advise the
completion of the Farm-In Agreement with Shell U.K. Limited
("Shell") in respect of offshore licences P1929 and P2304 ("the
Licences") which contain the Resolution and Endeavour gas
discoveries.
The OGA has approved the transfer of a 70% interest and
operatorship in both licences and the associated documentation
including Joint Operating Agreements in respect of both licences
has now been executed.
Egdon retains a 30% interest in the Licences. Under the terms of
the Farm-In Agreement, Shell will pay 85% of the costs of the
acquisition and processing of the 3D seismic survey covering both
the Resolution and Endeavour gas discoveries. Under the terms of
the Licences, this work needs to be completed by 31 May 2021. The
carry on the acquisition costs will be capped at US$5 million
gross, beyond which Egdon would pay 30% of the survey costs.
Furthermore, Shell will also pay 100% of all studies and manpower
costs through to the well investment decision on the Licences.
Commenting on the news, Mark Abbott, Managing Director of Egdon
Resources plc, said:
"We are delighted to have completed the transfer of interest and
operatorship to Shell in respect of these important, and
potentially valuable, licences for Egdon. The focus will now be on
progressing appraisal activity on the Resolution and Endeavour gas
discoveries.
The first part of this activity will be the acquisition of a
marine 3D seismic survey during Q1 2021. We look forward to
building on our good working relationship with Shell and benefiting
from their substantial worldwide operational experience and
expertise."
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 & Joint Broker - WH Ireland Limited
Chris Hardie 020 7220 1666
Lydia Zychowska
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.
Resolution and Endeavour Gas Discoveries
A Competent Person's Report prepared by Schlumberger Oilfield UK
PLC (April 2019) reported Mean Contingent Gas Resources of 231
billion cubic feet of gas ("bcf"), with a P90 to P10 range of 100
to 389 bcf, attributable to the Resolution gas discovery (P1929).
The Resolution discovery was made by Total in 1966 when well
41/18-2 flow tested gas from the Permian aged Zechstein carbonate
(limestone) reservoir. Additionally, Egdon estimates that the
Endeavour gas discovery (P2304) contains Mean Contingent Resources
of 18 bcf, with a P90 to P10 range of 10 to 28 bcf.
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.
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.
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