EDR.L Share News (EDR)

(Sharecast News) - Egdon Resources announced on Monday that the North Sea Transition Authority has approved the field development plan for the Wressle oil field in North Lincolnshire, held under licences PEDL180 and PEDL182.

The AIM-traded firm is the operator of Wressle, and holds a 30% interest.

It said the authority also approved the licences entering their production phase, which would continue through to 2039.

"This is a key milestone for the Wressle project as it transitions from an extended well test to production under an approved field development plan," said managing director Mark Abbott.

"Wressle continues to generate high levels of production and revenues.

"The Wressle-1 well is currently amongst the most productive in the onshore UK and to date has produced over 170,000 barrels of oil."

Abbott said the company's focus would now turn to installing the "few remaining" permanent production facilities, and progressing the planning, permitting and implementation of the gas monetisation plan.

"This will enable a reduction in gas incineration and remove the limitations on oil production.

"In parallel we are advancing the development plan and consenting process to enable production from the Penistone Flags reservoir where gross mid-case contingent resources of 1.53 million barrels of oil and two billion cubic feet of gas have been independently reported."

At 1352 BST, shares in Egdon Resources were up 3.33% at 3.88p.

Reporting by Josh White at Sharecast.com.