27 Jun 2016 07:05
27 June 2016
EGDON RESOURCES PLC
("Egdon" or "the Company")
Extension of Licence PEDL143
Egdon Resources plc (AIM:EDR) notes the release made this morning by Europa Oil and Gas (Holdings) plc ("Europa") in respect of PEDL143 where Egdon holds an 18.4% interest. Europa included the following statements;
Europa "is pleased to announce it has received notification from the Oil & Gas Authority that the PEDL 143 Licence in the Weald Basin, Surrey, UK, has been extended by two years until 1 October 2018. This will enable Europa to drill the conventional Holmwood prospect ('Holmwood'), which has estimated gross mean unrisked prospective resources of 5.6 million barrels of oil ('mmbo') in Portlandian and Corallian sandstones and a P90 - P10 range of resources of 1 to 11mmbo, in late 2016 / H1 2017, subject to funding.
PEDL143 is located in an area of the Weald Basin where 30 million barrels have been produced to date from 14 oil and gas fields. The Holmwood prospect is located 5km to the south of the Brockham oil field, which was discovered by BP in 1987 and today produces oil from Portlandian sandstone reservoirs. Holmwood is also 12km to the west of the Horse Hill-1 well in PEDL137 where UK Oil & Gas Investments PLC ('UKOG') has reported production at a combined average stable rate of over 1,688 bopd from Upper and Lower Kimmeridge Limestone reservoirs and Upper Portland sandstone reservoir during flow tests.
Planning permission is in place for a deviated exploration well to be drilled at Holmwood which will penetrate similar stratigraphy to Horse Hill, targeting oil in Upper and Lower Kimmeridge Limestones in addition to Corallian and Portlandian sandstones. The 5.6mmbo gross mean unrisked prospective resources at Holmwood do not include any estimate for the Jurassic limestones which have been found to be producing in Horse Hill."
During 2015 Egdon completed a farmout to UK Oil & Gas Investments PLC ("UKOG") in respect of the Holmwood-1 well whereby UKOG will pay 40% of the well cost to earn a 20% interest from Egdon up to a cap of £1.2 million net to UKOG.
For further information please contact:
Egdon Resources plc
Mark Abbott 01256 702 292
Buchanan
Richard Darby, Anna Michniewicz 020 7466 5000
Nominated Adviser and Broker - Cantor Fitzgerald Europe
David Porter, Sarah Wharry (Corporate Finance) 020 7894 7000
Joint Broker - VSA Capital Limited
Andrew Monk (Corporate Broking) 020 3005 5000
Andrew Raca (Corporate Finance)
Notes to Editors:
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 France.
Egdon currently holds interests in thirty six licences in the UK and France and is awaiting the issue of a further nine new UK licences in the 14th Round. The Company has an active programme of exploration, appraisal and development within its balanced portfolio of oil and gas assets and is an approved operator in both the UK and France.
Egdon was formed in 1997 and listed on AIM in December 2004.