Edgon confirms licence extensions and conversions

(ShareCast News) - Egdon Resources announced on Monday that the Oil and Gas Authority approved various licence extensions and conversions of licences to new model terms, as well as the relinquishment of one Egdon-operated licence.The AIM-traded firm confirmed that the first term of licence P1929 in the Cleveland Basin has been extended by two years to 19 April 2019 to allow time for Egdon to secure the required permits to plan and drill a well from an onshore location, to appraise the 1966 gas discovery.In the East Midlands, licences PEDL241 and PEDL253 have been extended by one further year to 30 June 2017.Wholly-held licence PEDL202 and joint venture licences PEDL201 and PEDL209 have adopted the new 14th Round licence terms and will continue without further relinquishment, the board confirmed.Egdon said that 100%-held PEDL191 in North West England has also adopted the new 14th Round licence terms and will continue without further relinquishment, while PEDL237 in the Wessex basin has been relinquished as the partners concluded that the bulk of the prospectivity in the area lay in PL090."Following on from the recently announced extension of the Europa operated licence PEDL143 containing the Holmwood prospect, we are pleased to have also been allowed additional time to drill our exciting operated onshore oil prospects at North Kelsey and Biscathorpe, and the offshore A Prospect which Egdon estimates may contain recoverable reserves of approximately 160 billion cubic feet of gas," commented managing director Mark Abbott."In addition we are pleased to have been able to adopt the new 14th Round terms for several of our existing licences which will allow us to further evaluate the unconventional resource potential of the retained areas."The relinquishment of PEDL237 is in line with Egdon's strategy to focus on fewer, high potential areas," Abbott added.Union Jack Oil - which is a minority partner in several of Egdon's licences - also commented, with executive chairman David Bramhill saying the licence extensions and conversions of licences to new model terms will allow the partners to further evaluate the unconventional resource potential of the retained area."In addition to Wressle, which is anticipated to produce first oil during Q4 2016, Union Jack holds a portfolio of high calibre licence interests containing several drill-ready prospects including Biscathorpe, North Kelsey, Keddington, Holmwood, Louth, North Somercotes and Broughton North."The company holds cash in excess of £2.3m and remains debt free," Bramhill confirmed in the market update.