22 Jun 2015 07:00
22 June 2015
EGDON RESOURCES PLC
("Egdon" or "the Company")
Farm-out of Further Interest in PEDL253
Egdon Resources plc (AIM:EDR) is pleased to announce that it has reached agreement in respect of a further farm-out of Licence PEDL253 to Union Jack Oil plc ("Union Jack"). Union Jack originally farmed-in to the licence in March 2013.
Under the terms of this new farm-out, Union Jack will earn an additional 1.2% interest in PEDL253 from Egdon in return for paying 2.4% of the costs of the planned Biscathorpe-2 exploration well. Union Jack has also agreed terms with Montrose Industries Limitedto earn a further 0.8% interest in PEDL253 in return for paying 1.6% of the well costs.
On completion of these new farm-outs the interests in PEDL253 will be:
Egdon Resources U.K. Limited 52.8% (Operator)
Montrose Industries Limited 35.2%
Union Jack Oil plc 12.0%
As previously announced, Planning Consent was awarded for the Biscathorpe-2 well in March 2015. Under the terms of the farm-out agreements, Egdon's share of the well costs will now be reduced to 45.6% as a result of Union Jack carrying in total 7.2% of the costs for Egdon. The transfer of interests is subject to approval by the Oil and Gas Authority.
The Biscathorpe Prospect is located approximately 15 kilometres to the west of the Keddington oil field and 36 kilometres to the south-east of the Wressle-1 discovery currently being tested by Egdon. It is defined on 3D seismic data and was previously explored by BP in 1987 with the Biscathorpe-1 well drilled in a structurally crestal location. That well penetrated a thin basal sandstone unit which is interpreted to have been oil bearing but was not tested. The sand unit is expected to thicken down-dip from the crest of the structure and there is also potential for stratigraphic trapping to the west which could increase the expected gross prospective resources as assessed by Egdon from a Best Estimate case of 14 mmbo up to a High case of 41 mmbo.
Commenting on this latest farm-out, Mark Abbott, Managing Director of Egdon Resources plc, said;
"While this is only a relatively small scale additional farm-out, we are encouraged by Union Jack's continued confidence in the prospectivity of the Biscathorpe structure, which we plan to test later in 2015 with the Biscathorpe-2 well."
For further information please contact:
Egdon Resources plc
Mark Abbott, Jerry Field 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
Richard Redmayne (Corporate Broking)
Joint Broker - VSA Capital Limited
Andrew Monk (Corporate Broking) 020 3005 5000
Andrew Raca (Corporate Finance)
Notes to Editors:
Egdon Resources plc
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 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 was formed in 1997 and listed on AIM in December 2004.
In accordance with the AIM Rules - Note for Mining and 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 26 years' experience.
Evaluation of potential prospective resources has been assessed in accordance with 2007 Petroleum Resources Management System prepared by the Oil and Gas Reserves Committee of the Society of Petroleum Engineers (SPE) and reviewed and jointly sponsored by the World Petroleum Council (WPC), the American Association of Petroleum Geologists (AAPG) and the Society of Petroleum Evaluation Engineers (SPEE).