19 Aug 2008 10:23
| For Immediate Release | 19 August 2008 |
EGDON RESOURCES PLC
("Egdon" or "the Company")
New Exploration Licences France
The Directors of Egdon Resources plc, the UK-based exploration and production company primarily focused on the hydrocarbon-producing basins of onshore UK and Europe, are pleased to provide an update on two licence applications in France made by its wholly owned subsidiary, Egdon Resources (New Ventures) Limited.
Egdon has been advised that no competing applications were received for the Gex Permit during the 90 day competition period which ended on 14 August 2008 following publication of the application in the Journal of the European Union. As such the application will now proceed to the final stages of approval through the French system with formal award expected in late 2008 or early 2009.
The Gex Permit, which covers an area of 932 square kilometres, is located in eastern France adjacent to the Swiss border close to Geneva. The permit is located in the Jura-Molasse Basin. There are two main plays within the area; oil in shallow Oligocence age sandstones and oil and gas in older Mesozoic reservoirs. Oil has been described from surface seeps which were historically mined within the region and also in a number of shallow cored boreholes drilled within the area. In addition oil and gas have been encountered in the Mesozoic section in wells drilled in and around the licence area. A number of surface anticlines are developed within the licence area and will be the focus for exploration of the Oligocence play. A large lead has also been identified in the Triassic.
The Gex Permit will have a five year duration and the initial two year work programme will comprise the reprocessing and interpretation of the existing seismic data and detailed geological studies.
Egdon can also provide an update on its Pontenx Permit application in South West France. The Pontenx permit application was subject to a competitive application during the 90 day period, which closed on 19 March 2008. Egdon has now reached agreement with the French authorities to split the application area between the two competing parties and the proposal is due to be considered by the French General Council of Mines during September. Assuming ratification, formal award of the licence will follow later in 2008 or early 2009.
The Pontenx Permit is located on the southern margins of the Parentis Basin, an oil productive region on the west coast of France, to the south of Bordeaux. France's largest onshore oil field, Parentis, is located some 10 kilometres to the north of the licence area. The Lucats-Cabeil heavy oil producing field is also located just to the north of the licence.
The main play within the Pontenx Permit is oil in Cretaceous age platform and reef carbonate reservoirs. The Pontenx Permit will cover an area of 313 square kilometres against the original application area of 387 square kilometres. The licence contains the abandoned Mimizan Nord heavy oil field, and a number of high potential prospects adjacent to or up-dip of wells with good oil shows and tests.
The licence will have a four year term and the initial two year work programme will comprise the reprocessing and interpretation of existing seismic data, a review of the rejuvenation potential of the Mimizan Nord abandoned oil field and detailed geological studies.
Egdon will be operator of both permits with a 40% interest. The partners in both permits are Eagle Energy Limited (40%) and Nautical Petroleum Limited (20%).
Commenting on the new licences, Mark Abbott Managing Director of Egdon said
"Egdon has identified France as a target for potential growth and these two new licences represent excellent progress within our business development strategy. These highly prospective licences contain a good mix of field rejuvenation, appraisal and exploration opportunities which complement our existing French licence. We now look forward to the conclusion of the formal process of licence award and commencement of a detailed phase of prospect evaluation. Egdon will also continue to review further opportunities in France and we expect to make further applications over the coming months as we look to further strengthen our acreage position and opportunity base."
For further information please contact:
| Egdon Resources plc Mark Abbott Managing Director | 01256 702292 |
| Buchanan Communications Ben Willey, Miranda Higham | 020 7466 5000 |
| Nominated Adviser and Broker - Seymour Pierce Jonathan Wright, Sarah Jacobs, Richard Redmayne | 020 7107 8000 |
Company Background
Egdon Resources plc 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 mainland Europe.
Egdon holds interests in twenty five 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 currently has production from the Keddington oil field in the East Midlands. Further oil and gas production is anticipated from Avington, Kirkleatham, Waddock Cross, Eakring-Dukes Wood and Kirklington within the next six to twelve months.
Egdon Resources plc listed on AIM in January 2008, following the demerger of its gas storage business, Portland Gas plc. The pre-demerged business was formed in 1997 and listed on AIM in December 2004.
Egdon in France
Egdon's French licences are held through wholly owned subsidiary Egdon Resources (New Ventures) Limited. Egdon has held interests in France since 1998 with the award of three licences in the Paris Basin (Mont St Pere, Chante Merle and St Jean aux Bois) which were subsequently relinquished in 2002 and 2003. Egdon's first operated licence in France was St Laurent awarded in 2002 and where Egdon completed the drilling of Grenade-3 earlier this year. A decision on further drilling at Grenade will be made during 2008 and further progress will be made in progressing evaluation of the large Audignon Gas Prospect. Egdon has identified France as a focus for business development building upon its experience in the country.
In accordance with AIM rules - guidance for mining, 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 22 years experience.