23 Jan 2009 10:36
23 January 2009 For Immediate Release
EGDON RESOURCES PLC
("Egdon" or "the Company")
Award of New Exploration Permit , Onshore France
Egdon Resources plc (AIM:EDR),the UK-based exploration and production company primarily focused on the hydrocarbon-producing basins of onshore UK and Europe, is pleased to announce the award of a new French exploration permit. The "Permis de Pontenx" (Pontenx Permit) was ratified on 16 December 2008 and published in the Official Journal on 20 January 2009.
Egdon will operate the permit with a 40% interest through its wholly owned subsidiary Egdon Resources (New Ventures) Ltd. The other partners in the joint venture group are Eagle Energy Limited (40%) and Nautical Petroleum plc (20%).
The Pontenx Permit is located on the southern margins of the Parentis Basin, an oil productive region on the Atlantic coast of France, to the south of Bordeaux. France's largest onshore oil field, Parentis, is located some 10 kilometres to the north of the permit area and the Lucats-Cabeil heavy oil producing field is also located just to the north of the permit. The main play within the permit is oil in Cretaceous age platform and reef carbonate reservoirs. The Pontenx Permit contains the abandoned Mimizan Nord heavy oil field and a number of high potential leads and prospects adjacent to or up-dip of wells with good oil shows and tests.
The permit covers an area of 313 square kilometres and has a four year initial term. The work programme will be phased, with the initial two years comprising the reprocessing and interpretation of existing 2D seismic data, a review of the rejuvenation potential of the Mimizan Nord abandoned oil field and detailed reservoir studies. A second contingent phase will comprise the acquisition of new seismic data and the drilling of a well. The total financial commitment for the joint venture group over both phases will be €2.5 million.
Commenting on the permit award, Mark Abbott, Managing Director of Egdon, said:
"With the formal award of Pontenx we now look forward to the commencement of the detailed evaluation of this highly prospective permit. Pontenx contains oil field rejuvenation, appraisal and exploration opportunities. This permit award is in line with our strategy of developing a high potential exploration portfolio as a platform for future growth with minimum near-term expenditure, whilst currently concentrating our resources on further developing our production and revenue streams. The Mimizan Nord abandoned oil field may present one such near-term production opportunity and its evaluation will be our initial priority."
For further information please contact:
Egdon Resources plc
Mark Abbott Managing Director 01256 702292
Buchanan Communications
Ben Willey, Miranda Higham 020 7466 5000
Nominated Adviser and Broker - Seymour Pierce
Jonathan Wright, Sarah Jacobs, Richard Redmayne 020 7107 8000
Company Background
Egdon Resources plc is an established UK-based exploration and production company primarily focused on onshore exploration and production in the hydrocarbon-producing basins of the UK and mainland Europe.
Egdon holds interests in twenty five licences in the UK and France and has an active programme of exploration, appraisal and development within its balanced portfolio of oil and gas assets. Egdon is an approved operator in both the UK and France.
Egdon currently has production from the Keddington oil field in the East Midlands. Further oil and gas production is anticipated from Avington, Kirkleatham, Waddock Cross, Eakring-Dukes Wood and Kirklington within the next twelve months.
Egdon Resources plc listed on AIM in January 2008, following the demerger of its gas storage business, Portland Gas plc. The pre-demerged business was formed in 1997 and listed on AIM in December 2004.
Egdon in France
Egdon's French permits are held through wholly owned subsidiary Egdon Resources (New Ventures) Limited. Egdon has held interests in France since 1998 with the award of three licences in the Paris Basin (Mont St Pere, Chante Merle and St Jean aux Bois) which were subsequently relinquished in 2002 and 2003. Egdon's first operated permit in France was St Laurent awarded in 2002 where Egdon completed the drilling of Grenade-3 in 2008. A decision on the future appraisal of Grenade will be made during 2009 along with continued evaluation of the large Audignon Gas Prospect. Egdon has identified France as a focus for business development building upon its experience in the country.
In accordance with AIM rules - guidance for mining, oil and gas companies, the information contained in this announcement has been reviewed and signed off by the Managing Director of Egdon Resources plc Mark Abbott, a Geoscientist with over 22 years experience.