LONDON (Alliance News) - Egdon Resources PLC and Union Jack Oil PLC Monday said the Oil & Gas Authority has approved various changes to licences held in the UK.
Egdon has led the changes which has impacted some of the ones held in partnership with Union Jack and the changes will see some licenses either extended, relinquished or converted to take new models into account.
The Oil & Gas Authority invited existing licence holders the opportunity to adopt the new licence terms offered under the 14th round of licensing which allows licensees to nominate areas to be retained in exchange for additional work programmes.
Egdon has elected to follow this path on four operated licences and one further non-operated licence where the partnership has also decided to accept the new licensing terms.
Starting with licenses over the Cleveland basin, Egdon said the wholly-owned licence P1929 covering blocks 41/18 and 41/19 and containing the A prospect, has been extended by two years to April 19, 2019.
That will allow Egdon to secure the required permits and to plan and drill a well from an onshore location to appraise the discovery that was originally made back in 1966.
"It has not been possible to complete this process without an onshore licence over the drill-site although this will be addressed by the award of new 14th Round licences to Egdon, and we currently expect to finalise and submit a planning application to drill when these new licences are confirmed," said Egdon.
In the East Midlands, Egdon said the first six-year term for PEDL241 which contains the drill-ready North Kelsey oil prospect has been extended by one more year to the end of June 2017. Egdon holds an 80% stake alongside Union Jack Oil, which holds the other 20%.
The first term for PEDL253 which contains the drill-ready Biscathorpe oil prospect jhas been extended by one year tyo the end of June 2017. Egdon holds a 52.8% stake in the licence whilst Union Jack holds 12%. The other partner is Montrose Industries Ltd.
PEDL201 has adopted new licence terms and will "continue without further relinquishment". Egdon holds a 32.5% stake whilst Union Jack holds a 10% stake. The other partners are Celtique Energie Petroleum Ltd, Corfe Energy Ltd and Terrain Energy Ltd.
PEDL202, wholly-owned by Egdon, will also adopt new terms and continue without further relinquishment, it said. PEDL209 will also do the same, but Egdon only holds a 50% stake in that licence alongside Union Jacks's 10% stake. The other partners are Blackland Park Exploration Ltd and Stelinmatvic Industries Ltd.
Lastly, in North West England, Egdon's wholly-owned PEDL191 will also adopt new licence terms.
PEDL237 in the Wessex basin has been relinquished because the partners believe the bulk of the prospectivity in the area lay in PL090 surrounding Waddock Cross and that resources should be concentrated on that asset.
In addition, Edgon said it has noted changes to some of the licenses that are operated by other partners that exclude Union Jack Oil.
Europa Oil & Gas (Holdings) PLC's PEDL181 in the Humber basin will continue into the second term after the work conducted in the first term was completed and part of the licence area was relinquished. Egdon holds a 25% stake in that licence.
Egdon also said that PEDL169, which it holds a 20% stake in alongside partner IGas with the other 80% stake, has adopted new licensing terms.
Egdon shares were down 5.9% to 10.70 pence per share on Monday morning, Union Jack was up 0.7% to 0.1412 pence and Europa shares were up 3.4% to 3.49 pence per share.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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