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19 Aug 2008 10:23
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For Immediate ReleaseΒ |
19 August 2008 |
EGDON RESOURCESΒ PLCΒ
("Egdon" or "the Company")
New Exploration LicencesΒ France
The Directors ofΒ Egdon Resources plc, the UK-based exploration and productionΒ company primarily focused on the hydrocarbon-producing basins of onshore UKΒ and Europe,Β are pleased toΒ provide an update on two licence applications in France made by its wholly owned subsidiary,Β Egdon Resources (New Ventures) Limited.
EgdonΒ hasΒ been advised that no competing applications were receivedΒ for the GexΒ Permit during the 90 dayΒ competitionΒ period which ended onΒ 14 August 2008Β 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 throughΒ theΒ French system withΒ formalΒ award expected in late 2008 or early 2009.
The GexΒ Permit, which covers an area of 932 square kilometres,Β is locatedΒ in easternΒ FranceΒ adjacent to the Swiss border close toΒ Geneva. The permit is located in theΒ Jura-MolasseΒ Basin.Β There are two main playsΒ within the area; oil inΒ shallowΒ Oligocence age sandstones and oil andΒ gas inΒ older MesozoicΒ reservoirs. Oil has been described from surface seepsΒ which were historically minedΒ within the regionΒ andΒ alsoΒ in a number of shallow cored boreholes drilled within the area. In addition oil and gas have been encountered in theΒ Mesozoic sectionΒ inΒ wells drilledΒ in and around the licence area. A number of surface anticlines are developed within the licence areaΒ and will be the focus for exploration of the Oligocence play. A large lead has also been identified in the Triassic.
TheΒ Gex PermitΒ will have a five year duration and the initial two year work programme will comprise the reprocessing and interpretation of the existing seismic data andΒ detailedΒ geological studies.
EgdonΒ can also provide an update on itsΒ Pontenx Permit application in South West France. The Pontenx permit application was subject to aΒ competitive applicationΒ during theΒ 90 day period, whichΒ closed onΒ 19 March 2008.Β Egdon hasΒ now reached agreement with the French authorities toΒ splitΒ the application area between the two competing parties and the proposal is due to beΒ consideredΒ by the FrenchΒ GeneralΒ Council of Mines during September.Β Β Assuming ratification,Β formal award of the licence will follow later in 2008 or early 2009.
The Pontenx Permit is located on the southern margins of theΒ ParentisΒ Basin, an oil productive region on theΒ westΒ coast ofΒ France,Β to the south ofΒ Bordeaux. France's largest onshore oil field, Parentis,Β is located some 10 kilometres to the north of the licence area. The Lucats-Cabeil heavyΒ oilΒ producingΒ field is also located justΒ to theΒ north of the licence.
The main play within the Pontenx Permit isΒ oil in Cretaceous age platform and reef carbonate reservoirs. TheΒ Pontenx Permit will cover an area of 313 square kilometres against theΒ original applicationΒ area of 387 square kilometres. The licence containsΒ 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 yearΒ work programme will compriseΒ the reprocessing and interpretation of existing seismic data,Β aΒ review of theΒ rejuvenation potential of theΒ Mimizan Nord abandoned oil field andΒ detailedΒ geological studies.
Egdon will be operator of both permits with a 40% interest.Β Β The partners in both permits are Eagle Energy Limited (40%) and Nautical Petroleum Limited (20%).
Commenting on theΒ new licences,Β Mark Abbott Managing Director of EgdonΒ saidΒ
"EgdonΒ hasΒ identifiedΒ FranceΒ as a target for potential growth and these two new licences represent excellent progress withinΒ our business development strategy. TheseΒ highly prospective licencesΒ contain aΒ goodΒ mix of field rejuvenation, appraisal and exploration opportunitiesΒ whichΒ complement our existingΒ FrenchΒ licence. We nowΒ look forward toΒ the conclusion of the formal process of licence awardΒ and commencement of a detailed phase of prospect evaluation. Egdon willΒ alsoΒ continue to reviewΒ furtherΒ opportunities inΒ FranceΒ and we expect to make further applications over the comingΒ monthsΒ as we look to further strengthen ourΒ acreageΒ positionΒ and opportunity base."
For further information please contact:
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Egdon Resources plc Mark Abbott Managing Director |
01256 702292 |
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Buchanan Communications Ben Willey,Β Miranda Higham |
020 7466 5000 |
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Nominated Adviser and Broker -Β SeymourΒ Pierce Jonathan Wright, Sarah Jacobs, Richard Redmayne |
020 7107 8000 |
Company Background
Egdon Resources plc is an establishedΒ UK-based exploration and production company primarily focused onΒ onshore exploration and production inΒ the hydrocarbon-producing basins of theΒ UKΒ and mainlandΒ Europe.
Egdon holds interests in twenty five licences in theΒ UKΒ andΒ FranceΒ 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 theΒ UKΒ andΒ France.
Egdon currently has production from the Keddington oil field in theΒ East Midlands.Β 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 onΒ AIMΒ in January 2008, following the demerger of its gas storage business, Portland Gas plc. The pre-demerged business was formed in 1997 and listed onΒ AIMΒ in December 2004.
Egdon inΒ France
Egdon's French licences are held through wholly owned subsidiary Egdon Resources (New Ventures) Limited. Egdon has held interests inΒ FranceΒ since 1998 with the award of three licences in theΒ ParisΒ BasinΒ (Mont St Pere, Chante Merle andΒ St JeanΒ aux Bois) which were subsequently relinquished inΒ 2002 and 2003. Egdon's first operated licence inΒ FranceΒ wasΒ St LaurentΒ awarded inΒ 2002Β 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.Β Egdon has identifiedΒ FranceΒ as a focus for business development building upon its experience in the country.
In accordance withΒ AIMΒ 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 ResourcesΒ plcΒ Mark Abbott, a Geoscientist with over 22Β years experience.
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