EDR.L Regulatory News (EDR)

3 Jun 2005 07:00

Egdon Resources PLC03 June 2005 For immediate release 3rd June 2005 EGDON RESOURCES PLC APPROVAL TO BECOME OPERATOR OF PEDL068 LICENCE IN CLEVELAND BASIN Egdon Resources Plc ("Egdon" or "the Company") has received partner andDepartment of Trade and Industry approval to take over as operator of thePEDL068 licence in the Cleveland Basin from Sterling Resources (UK) Ltd. Two exploration wells are planned for the fourth quarter of 2005 on the licence,Westerdale-1 and Kirkleatham-4. Egdon has taken over as operator in order toinclude the wells within a possible six well onshore UK programme that theCompany will be managing during 2005/6. The other wells include two wells toappraise the Waddock Cross oil discovery in the PL090 licence within the WessexBasin, a confirmation well to establish the presence of a suitable salt sequenceon the Isle of Portland to create cavities to store gas and a furtherexploratory well in licence PL090 to test a Sherwood Sandstone prospect(Winfrith-1). The timing and order of the programme is subject to obtaining the necessaryplanning and landowner consents. Egdon hope to commence the drilling programmein the autumn of 2005 and have appointed Mahon Consultants Limited as drillingengineers to the project. Commenting on the agreement, Egdon's Joint Managing Director, Andrew Hindle,said, "The DTI approval provides the green light, subject to necessary consents,for the proposed PEDL068 wells to form part of a multi-well programme, thusleading to significant cost savings to Egdon on casing, equipment and services.This is in line with the Company's plans, stated in the interim resultsannouncement, dated 25 April, to embark on an accelerated phase of explorationdrilling and to move the discoveries at Waddock Cross and Avington intoprofitable production". For further information please contact: Egdon Resources Plc 01256 702292Mark Abbott, Joint Managing DirectorAndrew Hindle, Joint Managing Director Buchanan Communications 020 7466 5000Eric BurnsBen Willey Notes to the Editors: The wells within the outlined Egdon operated drilling programme are locatedwithin the PL090 licence (Waddock Cross-3, Waddock Cross-4, Winfrith-1) in theWessex Basin where the Company holds a 45% working interest and the PL068licence (Westerdale-1, Kirkleatham-4) in the Cleveland Basin where the Companyholds a 20% working interest. The Portland gas storage confirmation well will bedrilled from a site leased by wholly owned subsidiary, Portland Gas Limited. Company Background Egdon is an established, independent UK-based oil and gas exploration companyprimarily focused on the hydrocarbon-producing basins of the onshore UK. Egdonalso has exploration interests in the offshore UK and France. Egdon was formed in 1997 by Dr Andrew Hindle and Mark Abbott. In December 2004,Egdon's shares commenced trading on AIM, having been previously traded on Ofexsince July 2000. The Company has acquired a diverse portfolio of nineteenexploration licences containing a significant number of identified oil and gasprospects. The licences cover a broad risk spread, ranging from discoveriesunder appraisal through to higher risk but higher potential reward prospects. This information is provided by RNS The company news service from the London Stock Exchange