4 May 2010 07:00
For Immediate Release 4 May 2010
EGDON RESOURCES PLC
("Egdon" or "the Company")
Award of the Navacelles Exploration Permit - SE France
Egdon Resources plc (AIM:EDR) is pleased to announce that its wholly owned subsidiary Egdon Resources (New Ventures) Limited has been advised of the formal award of the Navacelles Permit in the South East Basin of onshore France.
The Navacelles Permit which covers an area of 216 square kilometres was awarded for a period of five years effective from 1 March 2010 and carries a financial commitment of 1.36 million Euros.
Egdon will be the operator of the Permit with a 60% interest. Egdon's joint venture partners are Eagle Energy Limited (20%) and a subsidiary of Heyco International (20%).
Egdon's evaluation of the licence area has identified a series of large anticlines where previously drilled wells have indicated the presence of gas in low-permeability limestone reservoirs. Egdon will investigate the potential for applying modern fracture stimulation techniques to enhance the productivity of the gas bearing limestones to achieve commercial flow rates. Egdon has also identified shale-gas potential within the licence area and this will form an integral part of our detailed evaluation.
Commenting on the award Mark Abbott, Managing Director of Egdon said;
"We are delighted to have been awarded the Navacelles Permit in the light of substantial competition, which included oil major Total. The permit contains a good mix of prospectivity, with the presence of gas bearing structures which are candidates for fracture stimulation, and the recognition of a potential shale-gas resource. We will now progress our detailed evaluation of Navacelles, starting with a review of all historical data and reprocessing of the existing 2D seismic data."
For further information please contact:
Egdon Resources plc
Mark Abbott 01256 702292
Buchanan Communications
Richard Darby, James Strong 020 7466 5000
Nominated Adviser and Broker - Seymour Pierce
Jonathan Wright, Richard Redmayne 020 7107 8000
Company Background
Egdon Resources plc (LSE: EDR) 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 Europe.
Egdon currently holds interests in twenty four 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 has production from the Keddington and Kirklington oil fields in the East Midlands and the Avington oil field in Hampshire. Further oil and gas production is anticipated from Eakring-Dukes Wood, Waddock Cross and Kirkleatham in 2010.
Egdon have also recently announced the acquisition of a package of UK and French assets from EnCore Oil plc. On completion of this transaction Egdon will have additional production from the Ceres gas field and a significantly expanded acreage position with a total of thirty licences in the UK onshore, one offshore UK and six permits in France (plus one pending award).
Egdon Resources plc listed on AIM in January 2008, following the demerger of its gas storage business, Portland Gas plc (now renamed Infrastrata plc). The pre-demerged business was formed in 1997 and listed on AIM in December 2004.
www.egdon-resources.com
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 23 years experience.