1 Nov 2016 07:00
1 November 2016
EGDON RESOURCES PLC
("Egdon" or "the Company")
Independent Gas in Place Estimates of some of Egdon's Northern England Licences
Egdon Resources plc (AIM:EDR) is pleased to announce the results of an independent assessment prepared by ERC Equipoise Ltd ("ERCE" or "Competent Person") in relation to certain UK Onshore Licences in which Egdon holds an interest.
ERCE has provided an independent assessment of the undiscovered gas initially in place (GIIP) of ten Northern England licences - of which eight were awarded in the recent 14th Round and two are from the 13th Round. This assessment has applied the same methodologies used by ERCE in its April 2014 report on seven of Egdon's licences and ERCE's May 2014 report on the acquisition of nine of Alkane Energy plc's licences which was completed in June 2014.
ERCE has reported, an estimated Mean undiscovered GIIP of approximately 20 trillion cubic feet ("TCF") of gas net to Egdon, with a range from approximately 7 to 38 TCF. When added to the 2014 assessment, ERCE's independent estimates of Mean undiscovered GIIP attributable to Egdon increases to approximately 48 TCF with a range of approximately 18 to 86 TCF.
ERCE's letter to Egdon's Board of Directors summarising the findings of the assessment has been published on the Company's website (www.egdon-resources.com).
ERCE's estimates of undiscovered GIIP are subject to exploration risk, which may be considerable. ERCE has not assessed this risk as no Prospective Resources have yet been attributed to these properties by Egdon and ERCE, and further geoscientific and engineering data need to be acquired to be able to quantify these resources. ERCE notes that mining of the overlying coal measures has occurred in a number of the licences, which may affect site access and drilling operations. In the case where Prospective Resources are identified within these licences, there is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources.
Commenting on the report, Mark Abbott, Managing Director of Egdon Resources plc, said:
"We are pleased that this latest ERCE report has confirmed the significant potential gas resource that may exist within certain of our licences, with a 71% increase in net Egdon estimated Mean undiscovered GIIP to 48TCF."
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)
Mark Westcott (Sales)
020 7894 7000
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.
Egdon holds interests in 43 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.
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.
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.
Previous ERCE Reports
On 25th April 2014 we announced Independent Gas in Place Estimates of some of Egdon's Northern England Licences. ERCE reported net Egdon estimated mean GIIP of approximately 18 trillion cubic feet of gas ("TCF") with a range of approximately 8 to 31 TCF and a mid-case of 15 TCF in seven of Egdon's Licences.
On 13th May 2014 we announced the proposed Alkane Transaction, Placing and Open Offer. ERCE completed a review of GIIP in these nine Alkane licences for the purposes of the transaction and combined the results with its April 2014 review of seven of Egdon's Licences. ERCE reported combined estimated mean undiscovered GIIP of approximately 28 trillion cubic feet of gas ("TCF") with a range of approximately 11 to 48 TCF and a mid-case of 22 TCF for these Licences.
Reference
1 Andrews, I.J. 2013. The Carboniferous Bowland Shale gas study: geology and resource estimation. British Geological Survey for Department of Energy and Climate Change, London, UK.