7 Aug 2015 15:31
7 August 2015
EGDON RESOURCES PLC
("Egdon" or "the Company")
Favourable Holmwood Planning Inspectorate Decision
Egdon Resources plc (LSE: EDR) is delighted to note that Europa Oil and Gas (Holdings) plc ("Europa") has today announced that the Planning Inspector has allowed the appeal and granted permission for the Holmwood Exploration Well in PEDL143 in Surrey.
Europa's RNS contained the following information:
Europa Oil & Gas (Holdings) plc … is pleased to announce that the Planning Inspectorate has allowed Europa's appeal against Surrey County Council's decision not to grant permission to drill one exploratory borehole and undertake a short term test for hydrocarbons at the Holmwood prospect ('Holmwood') in the PEDL143 licence in the Weald Basin, Surrey.
The Holmwood prospect is to be drilled as a deviated exploration well and a further planning application for the underground well path was submitted to Surrey County Council on 14 May 2014. It is understood that Surrey County Council will make a decision on this application now that the Planning Inspectorate has issued its decision on the planning appeal. Europa and its partners will wait until Surrey County Council makes its decision on the underground well path before considering next steps on this licence.
An application for planning permission to drill the Holmwood prospect on PEDL143 was submitted in 2008 and was dismissed by Surrey County Council in 2011. A planning appeal in 2012 was dismissed by the Planning Inspectorate. Europa successfully challenged this decision in the High Court in 2013. In 2014 the Court of Appeal upheld the 2013 High Court judgment in the company's favour and a second planning appeal was heard at an eight day public inquiry in April and June 2015. The Planning Inspectorate issued a decision to allow the appeal on 7 August 2015.
Europa's CEO Hugh Mackay said "We are pleased with the Planning Inspectors decision. With mean gross un-risked prospective resources of 5.6 million barrels of oil, as estimated in a CPR published in June 2012, and a one in three chance of success, we regard Holmwood as one of the best undrilled conventional prospects in onshore UK and we await Surrey County Councils decision on the underground well path with interest."
Egdon will be carried on the drilling costs for the Holmwood well on its 18.4% interest up to a set spending limit under the terms of an agreement announced on 29 June 2015 with UK Oil & Gas Investments plc.
The interests in PEDL143 on completion of the UKOG farm-in will be:
Europa 40.0% (operator)
Egdon Resources U.K. Limited 18.4%
Warwick Energy Ltd. 20.0%
UK Oil & Gas Investments plc 20.0%
Altwood Petroleum Ltd. 1.6%
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:
The Holmwood Prospect:
The Holmwood Prospect is one of the largest undrilled prospects in the Weald Basin and was independently assessed by Troy Ikoda in 2004 as having potential gross Best Estimate Prospective Resources of 41.5 bcf. However, the recent discovery of oil at Horse Hill-1 some 10km to the East increases the chances of oil rather than gas being present at Holmwood. A Competent Persons Report by ERC Equipoise Limited, published in June 2012 on Europa's website (http://www.europaoil.com/documents/CPR_Europa_Final_070612.pdf) estimates that the Holmwood prospect could contain mean gross unrisked prospective resources of 5.6 million barrels of oil for the combined Portland and Corallian objectives.
Under the terms of an agreement announced on 29June 2015, UKOG will pay a 40% share of the Holmwood-1 drilling costs in order to acquire a 20% working interest in PEDL143 from Egdon. UKOG's share of well costs will be capped at £1.2 million net to UKOG (i.e. 40% of a gross Holmwood-1 well cost estimate of £3 million). Gross well costs above £3 million, should they arise, will be met according to the working interests in PEDL143. Egdon's interest in the licence on completion will be 18.4%.
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).