13 Jun 2016 07:00
13 June 2016
EGDON RESOURCES PLC
("Egdon" or "the Company")
Farm-out of Interest in PEDL182
Egdon Resources plc (AIM:EDR) is pleased to announce that it has reached agreement in respect of a farm-out of an interest in PEDL182 to Union Jack Oil PLC ("Union Jack", AIM: UJO).
Licence PEDL182 is located in Lincolnshire to the immediate north of PEDL180. In May 2013, Union Jack farmed into the Wressle-1 exploration well and earned an 8.33% interest in PEDL180 and that part of the Wressle-1 discovery determined to extend into PEDL182. Under the terms of this new farm-out, Union Jack will earn an 8.33% interest in the remainder of PEDL182 beyond Wressle in return for paying 12.495% of the cost of a future exploration well to evaluate the Broughton North prospect together with associated back costs of £64,000.
Upon completion and subject to approval from the Oil and Gas Authority, the interests held in each of PEDL180 and PEDL182 will be aligned and will be:
Egdon Resources U.K. Limited 25.00% (Operator)
Celtique Energie Petroleum Ltd. 33.33%
Europa Oil & Gas Limited 33.34%
Union Jack Oil PLC 8.33%
Commenting on the transaction, Mark Abbott, Managing Director of Egdon said:
"We are pleased to welcome Union Jack as a partner once again following on from their participation in the Wressle discovery, the drilling of the Keddington-5 side-track and the Laughton-1 exploration well in 2016, and the planned Biscathorpe and North Kelsey exploration wells in PEDL253 and PEDL241 respectively.
This farm-out helps to optimise the balance of risk and reward for the Company in exploration of the remainder of PEDL182 where geological risks have been greatly reduced following the Wressle discovery in 2014. We believe that aligning the interests of the parties over the entirety of both PEDL180 and PEDL182 will facilitate the development of the Wressle Field and further exploration."
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
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 (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.