(Alliance News) - Shares in oil & gas exploration firm Egdon Resources PLC jumped Wednesday after it received a six months extension for two UK offshore gas licences.
Shares in Odiham-based Egdon were 8.3% higher at 3.20 pence in London in early afternoon trading.
The UK Oil & Gas Authority extended the period for the P1929 and P2304 licences until the end of May 2020.
With this extension, Egdon will have to fully execute a farm-in deal for the licences to provide funding for the projects by the end of January. The firm will also have to prove by the end of March that it is on track to deliver its 3D seismic data acquisition.
P1929 has estimated contingent gas resources of 231 billion cubic feet of gas and P2304 another 18 billion cubic feet.
"We are pleased to have secured extensions from the OGA for both P1929 and P2304 which contain the Resolution and Endeavour gas discoveries, key conventional projects for Egdon," Managing Director Mark Abbott said. "This follows on from our recent announcement of securing an exclusivity agreement with a large internationally recognised exploration and production company as our preferred partner for Resolution and Endeavour."
"Today's news represents further positive progress for these projects and results from the proactive and constructive engagement between Egdon, the Counterparty and the OGA," Abbott added. "Having secured the licence extensions, our focus now turns to finalising a farmout agreement and we look forward to updating shareholders on progress in this regard in the New Year."
By Ahren Lester; ahrenlester@alliancenews.com
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