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17 Jun 2009 07:00
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For Immediate Release |
17 June 2009 |
EGDON RESOURCESΒ PLCΒ
("Egdon" or "the Company")
Award of NewΒ ExplorationΒ Permit, OnshoreΒ France
Egdon Resources plcΒ (AIM:EDR),Β the UK-based exploration and production company primarily focused on the hydrocarbon-producing basins of onshore UKΒ and Europe,Β isΒ pleased toΒ announceΒ Β the award of a newΒ FrenchΒ exploration permit. The "Permis deΒ Gex" (GexΒ Permit) was ratified onΒ 28Β May 2009Β and published in the Official Journal onΒ 11Β JuneΒ 2009.
Egdon will operate theΒ Gex Permit with a 40% interestΒ throughΒ itsΒ wholly owned subsidiary Egdon Resources (New Ventures) Ltd. TheΒ otherΒ partnersΒ in the joint venture groupΒ are Eagle Energy Limited (40%) and Nautical Petroleum plc (20%).Β The GexΒ Permit covers an area of 932 square kilometres and has a five year initial termΒ whichΒ commencedΒ onΒ 11 June 2009.
TheΒ GexΒ Permit is locatedΒ in the Jura/Molasse BasinΒ of Eastern FranceΒ adjacent to the SwissΒ borderΒ andΒ the city ofΒ Geneva.
TheΒ main exploration targetsΒ compriseΒ oil in shallow Oligocene sandstones and gas inΒ deeper TriassicΒ reservoirs. TheΒ Triassic gasΒ prospectsΒ have been identifiedΒ based on a reinterpretationΒ of the regional structure style,Β which indicatesΒ the presence of large basement involvedΒ anticlinesΒ with strong topographic expression. These structuresΒ are each mapped as havingΒ significant resource potentialΒ ofΒ overΒ 1 trillion cubic feet of gas in place.Β Β The focus of exploration for the shallow Oligocene play areΒ theΒ surface anticlines developed within theΒ permitΒ area. The presence ofΒ oilΒ seeps andΒ oil inΒ shallow boreholesΒ demonstratesΒ the presence of a working petroleum systemΒ for this play.
The work programme will be phased,Β with theΒ initialΒ twoΒ yearsΒ comprisingΒ geological and geophysical studiesΒ and gravity data acquisition followed by aΒ second contingent phase ofΒ three years which would includeΒ the acquisition of newΒ seismicΒ dataΒ andΒ theΒ drillingΒ of a well. The total financial commitmentΒ for theΒ jointΒ venture groupΒ over both phasesΒ will beΒ β¬1.16Β million.
Commenting on theΒ permit award,Β Mark Abbott,Β Managing Director of Egdon,Β said:Β
"The award of the Gex Permit represents further progress with the strategy we embarked on 18 months ago of growing Egdon's FrenchΒ explorationΒ position to further strengthen our medium-term exploration focus in a country withΒ significant exploration potential,Β political stability and excellent fiscal terms. WeΒ are now ableΒ toΒ progressΒ theΒ detailed evaluation ofΒ thisΒ highΒ potentialΒ areaΒ which contains a mix of oil and gas prospects in aΒ regionΒ which has been overlooked for a number of years. Of particular interest are the presence of large untested gas prospectsΒ in an area close to infrastructure able to feed into the European gas marketΒ "
For further information please contact:
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Egdon Resources plc Mark Abbott Managing Director |
01256 702292 |
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Buchanan Communications Ben Willey,Β Miranda Higham |
020 7466 5000 |
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Nominated Adviser and Broker -Β SeymourΒ Pierce Jonathan Wright, Sarah Jacobs, Richard Redmayne |
020 7107 8000 |
Company Background
Egdon Resources plc is an establishedΒ UK-based exploration and production company primarily focused onΒ onshore exploration and production inΒ the hydrocarbon-producing basins of theΒ UKΒ andΒ Europe.
Egdon holds interests inΒ twentyΒ sixΒ licences in theΒ UKΒ andΒ FranceΒ 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 theΒ UKΒ andΒ France.
Egdon currently has production from the Keddington oil field in theΒ East MidlandsΒ and the Avington oil field in Hampshire.Β Further oil and gas production is anticipated fromΒ Kirklington,Β Waddock Cross, Eakring-Dukes WoodΒ and KirkleathamΒ within the next twelve months.
Egdon Resources plc listed onΒ AIMΒ in January 2008, following the demerger of its gas storage business, Portland Gas plc. The pre-demerged business was formed in 1997 and listed onΒ AIMΒ in December 2004.
Egdon inΒ France
Egdon's FrenchΒ permitsΒ are held through wholly owned subsidiary Egdon Resources (New Ventures) Limited. Egdon has held interests inΒ FranceΒ since 1998 with the award of three licences in theΒ ParisΒ BasinΒ (Mont St Pere, Chante Merle andΒ St JeanΒ aux Bois) which were subsequently relinquished inΒ 2002 and 2003. Egdon's first operatedΒ permitΒ inΒ FranceΒ wasΒ St LaurentΒ awarded inΒ 2002Β where Egdon completed the drilling of Grenade-3Β in 2008. A decision onΒ the futureΒ appraisal of Grenade will be made during 2009Β along with continuedΒ evaluation of theΒ high potentialΒ Audignon Gas Prospect.Β Egdon also holds an interest in the PontenxΒ Permit in the Parentis Basin of SW FranceΒ awarded in January 2009.Β Β Egdon has identifiedΒ FranceΒ as a focus for business development building upon its experience in the countryΒ and has further applications pending.
In accordance withΒ AIMΒ 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 ResourcesΒ plcΒ Mark Abbott, a Geoscientist with over 23Β years experience.
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