15 Nov 2011 10:37
For Immediate Release | 15 November 2011 |
EGDON RESOURCES PLC
("Egdon" or "the Company")
Farm-out of interest in PEDL206
Egdon Resources plc (AIM:EDR) is pleased to announce that it has reached agreement to farm-out an interest in Nottinghamshire licence PEDL206 to Angus Energy Kelham Hills Limited ("Angus"). Under the terms of the agreement, Angus will acquire a 50 per cent interest in the licence from Egdon in return for carrying the Company for 15 per cent of the costs of two well's or 25 per cent of the cost of a single well. The wells or well are to be drilled during the initial term of the licence, which ends on 30 June 2014. As part of the agreement Angus will also assume operatorship of the licence. Following completion, Egdon will retain a 25% interest in the licence.
PEDL206 was awarded in the 13th Onshore Licensing Round in 2008 and is located immediately to the east of PEDLs 118 and 201 which contain the Company's Dukes Wood-1 and Kirklington-3z oil wells that are due to resume production in 2012. The licence contains the Kelham Hills abandoned oil field, which produced two million barrels of oil between 1941 and 1957. A number of leads and prospects have been defined on existing seismic data which will be the focus of future exploration activity.
The assignment and change of operatorship are subject to approval from the Department of Energy and Climate Change (DECC).
Egdon's Managing Director, Mark Abbott, commented:
"Whilst containing a number of leads and prospects close to known oil production, their potential size means that PEDL206 is not a priority for the Company. This transaction enables Egdon to maintain an interest in the area whilst limiting the required financial and management resources. This farm-out is an example of our stated strategy of concentrating our resources on fewer higher potential projects as the Company develops."
For further information please contact:
Egdon Resources plc
Mark Abbott 01256 702292
www.egdon-resources.com
Buchanan
Richard Darby, James Strong, Gabriella Clinkard 020 7466 5000
Nominated Adviser and Broker - Seymour Pierce
Jonathan Wright, Sarah Jacobs (Corporate Finance) 020 7107 8000
Richard Redmayne, Jeremy Stephenson (Corporate Broking)
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 Europe.
Egdon currently holds interests in 29 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.
www.egdon-resources.com
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 25 years' experience.