27 Nov 2019 07:00
27 November 2019
EGDON RESOURCES PLC
("Egdon" or "the Company")
Grant of Licence Extensions: P1929 and P2304
Egdon Resources plc (AIM:EDR) is pleased to advise that the Oil and Gas Authority ("OGA") has granted licence extensions to UK offshore licences P1929 and P2304. Egdon's subsidiary, Egdon Resources U.K. Limited ('ERUK'), is the operator and currently holds a 100% interest in both licences.
The OGA has granted a six month extension to both P1929 and P2304 ("The Licences") to 31 May 2020 with obligations as follows:
1. By 31 January 2020, demonstrate to the OGA's satisfaction that a farm-in agreement has been fully executed which provides for funding of the licence work programme; and
2. By 31 March 2020, demonstrate to the OGA's satisfaction that the Licensee is on track to deliver a future programme of 3D seismic data acquisition across both Licences.
We anticipate further engagement with the OGA during the period of the licence extension to agree the nature and timing of the forward work programme and to reach agreement on the duration of a further licence extension to accommodate these activities.
P1929 contains the Resolution gas discovery where a Competent Persons Report by Schlumberger Oilfield UK PLC (April 2019) reported estimates of mean Contingent Gas Resources of 231 billion cubic feet of gas ("bcf") with a P90 to P10 range of 100 to 389 bcf, attributable to the Zechstein reservoir in the 1966 gas discovery made by Total in well 41/18-2. P2304 contains an extension of the Resolution discovery and the Endeavour gas discovery which Egdon estimates contains mean Contingent Resources of 18 bcf, with a P90 to P10 range of 10 to 28 bcf.
Today's news follows from our announcement of 4 November 2019, advising that ERUK had signed an exclusivity agreement (the "Agreement") in respect of Licence P1929 and P2304 with a large internationally recognised exploration and production company (the "Counterparty").
Despite entry into the Agreement, no assurance can be provided that a commercial transaction will ultimately be concluded with the Counterparty. The Company will provide further updates in respect of these matters in due course.
Commenting, Mark Abbott, Managing Director of Egdon Resources plc, said:
"We are pleased to have secured extensions from the OGA for both P1929 and P2304 which contain the Resolution and Endeavour gas discoveries, key conventional projects for Egdon. This follows on from our recent announcement of securing an Exclusivity Agreement with a large internationally recognised exploration and production company as our preferred partner for Resolution and Endeavour.
Today's news represents further positive progress for these projects and results from the proactive and constructive engagement between Egdon, the Counterparty and the OGA. Having secured the licence extensions, our focus now turns to finalising a farmout agreement and we look forward to updating shareholders on progress in this regard in the New Year."
For further information please contact:
Egdon Resources plc
Mark Abbott / Martin Durham 01256 702 292
Buchanan
Ben Romney, Chris Judd 020 7466 5000
Nominated Adviser and Joint Broker - Cantor Fitzgerald Europe
David Porter/ Rick Thompson (Corporate Finance) 020 7894 7000
Caspar Shand Kydd (Sales)
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 focused on onshore exploration and production in the hydrocarbon-producing basins of the UK.
Egdon holds interests in 44 licences in the UK and has an active programme of exploration, appraisal and development within its portfolio of oil and gas assets. Egdon is an approved operator in the UK. Egdon was formed in 1997 and listed on AIM in December 2004.
Qualified Person Review
In accordance with the AIM Rules - Note for Mining and Oil and Gas Companies, this release has been reviewed by Mark Abbott, Managing Director of Egdon, who is a geoscientist with over 30 years' experience and is a member of the Petroleum Exploration Society of Great Britain and a Fellow of the Geological Society. Mr Abbott has consented to the inclusion of the technical information in this release in the form and context in which it appears.
Evaluation of hydrocarbon volumes has been assessed in accordance with 2018 Petroleum Resources Management System (PRMS) 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), the Society of Petroleum Evaluation Engineers (SPEE), the Society of Exploration Geophysicists (SEG), the Society of Petrophysicists and Well Log Analysts (SPWLA) and the European Association of Geoscientists & Engineers (EAGE).
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). Upon the publication of this announcement via Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.