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24 Jun 2008 07:00
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For Immediate Release |
24th June 2008 |
EGDON RESOURCESΒ PLCΒ
("Egdon" or "the Company")
Further Details ofΒ New LicencesΒ OnshoreΒ UK
Egdon Resources plcΒ (AIM:EDR), the UK-based exploration and production company primarily focused on the hydrocarbon-producing basins of the onshore UKΒ and mainland Europe,Β is pleased to provideΒ further details of the licences offeredΒ to itΒ in theΒ UKΒ 13thΒ Landward licensing round.
As previously reported theΒ Department for Business Enterprise and Regulatory Reform has offered Egdon a total of sixΒ operatedΒ Petroleum Exploration and Development Licences ("PEDL's"). These licences are located within two of the Company's focus areas, theΒ EastΒ MidlandsΒ PetroleumΒ ProvinceΒ and the Wessex Basin of Dorset. All licence awards are subject to the usual regulatory approvals.
Egdon and its joint venture partners have been offered PEDL237Β within theΒ WessexΒ BasinΒ inΒ Dorset,Β Southern England. Egdon will hold a 45% interest in the licence with partners First Oil ExproΒ LtdΒ (26.25%), Sterling ResourcesΒ (UK) Ltd.Β (18.75%) and Dorset Exploration Limited (10%). The licence isΒ contiguousΒ toΒ existing licences PEDL048 and PL090. The areaΒ contains a number of high potential oil prospects identified on proprietary reprocessedΒ 2-DimensionalΒ ("2D")Β seismic data. The main plays within the block are the Sherwood Sandstone and Bridport Sandstone which are productive at the Wytch Farm oil field located someΒ 20Β kilometresΒ to the east. Egdon have mapped best estimateΒ grossΒ prospective resourceΒ potential of 70 million barrels of oilΒ ("mmbo") within the licence. TheΒ work programme will comprise ofΒ pre-stack depth migration of existingΒ 2D seismic data prior to making a drill or drop decision on the licence.
FiveΒ licences have been offered in the East Midlands Petroleum ProvinceΒ of Nottinghamshire,Β LincolnshireΒ and Leicestershire,Β anΒ area where Egdon willΒ now holdΒ 15Β licences.Β
PEDL182 is one of threeΒ licencesΒ offered to a 50:50 joint venture with Celtique Energie Petroleum LimitedΒ ("Celtique"). The licence is located to the south and east of the town ofΒ Scunthorpe.Β PEDL182Β contains the BroughtonΒ Prospect, a structure up-dipΒ andΒ to the north and west of the Broughton-1 oil discovery well drilled by BP in 1984, which produced oil on test at rates ofΒ up to 40 barrels of oil per day.Β Β Broughton is located to the south-east of the Crosby Warren producing oil field. AdditionalΒ prospectivityΒ is also identified within theΒ block. Best estimate gross prospective resources of 4 mmbo have been mapped within the licence. The work programme will compriseΒ ofΒ the reprocessing of existing seismic data and new proprietary 2D seismic acquisition before making a drill or drop decision on the licence.
Licence PEDL241Β is located to the south east of PEDL182. The licence contains a regional high trend known as the Glanford-Brigg High along which oil has been found by wells at Brigg and Glanford. The trend is covered by 3-DimensionalΒ ("3D")Β seismic data which has enabled the mapping of a number of robust prospects. The primary focus will be on the North Kelsey Prospect, an unίtested tilted fault-block, and the Brigg and Glanford Prospects where oil has previously been found although not commercially developed.Β Evaluation of existing data hasΒ resulted in best-estimate gross prospective resources of over 12 mmbo being mapped for the licence. The Egdon-Celtique joint venture will obtain and reprocess further 2D seismic data and reprocess the existing 3D seismic before making a drill or drop decision.
Egdon and Celtique have also been offered PEDL201 in the southern part of theΒ EastΒ MidlandsΒ PetroleumΒ ProvinceΒ to the south-east of the city ofΒ Nottingham. The block is located between the Rempstone and Long Clawson producing oil fields on the southern margin of theΒ WidmerpoolΒ GulfΒ Basin. Egdon have identified a number of prospective structures and also a new high potential play. Best-estimate gross prospective resources of 14 mmbo have been mapped within the licence. Egdon willΒ obtain and reprocessΒ additional 2D seismic data and acquireΒ newΒ proprietaryΒ 2D seismic data prior to making a drill or drop decision.
Egdon has also been offered two blocks on a 100% basis, which areΒ contiguousΒ withΒ existing licencesΒ PEDL118, PEDL130Β andΒ PEDL132. PEDL203 is locatedΒ in NottinghamshireΒ to the south of the Eakring -Β Dukes Wood oil field where Egdon is planningΒ to drillΒ a well later in 2008Β as part of a field rejuvenation project. This block contains theΒ Kirklington oil fieldΒ which produced from the Sub-Alton Crawshaw reservoir between 1991 and 1998 and from the Chatsworth Grit reservoir from 2003 to 2004. Egdon believe that over 0.5 mmbo could remain recoverable from the fieldΒ viaΒ the existing Kirklington-2 well,Β whichΒ is stillΒ capable of production. Egdon willΒ workΒ to restart production from the field later in 2008 subject to regulatory, landowner and other approvals. TheΒ licenceΒ work programme requiresΒ obtaining and reprocessingΒ existing 2D seismic data prior to a drill or drop decision on the licence.
PEDL206 (Egdon 100%) contains the Kelham Hills and Caunton abandoned oil fieldsΒ and a number of identified leads and prospects. Egdon have mapped best-estimate prospective resources of 5 mmbo for the licence and will beΒ obtainingΒ and reprocessing further existing 2D and 3DΒ seismicΒ data as part of the work programme prior to a drill or drop decision.
Commenting on the licence offers,Β Mark Abbott, Managing Director of Egdon, saidΒ
"The award of theseΒ sixΒ newΒ operatedΒ licencesΒ significantlyΒ strengthen and broadenΒ Egdon's onshoreΒ UKΒ assetΒ and opportunityΒ position.Β The new licences addΒ netΒ EgdonΒ best-estimate prospective resources of over 50 million barrels of oil. Within these new blocks weΒ haveΒ a broad mix ofΒ opportunities, fromΒ anΒ early oil productionΒ projectΒ at KirklingtonΒ in PEDL203, throughΒ identified prospects up-dip of known oil such as at Broughton in PEDL182 and Brigg and Glanford in PEDL241,Β to high potential playsΒ such as those seen in the Sherwood Sandstone of the Wessex BasinΒ in PEDL237 and new play concepts as seen in PEDL201.
These awardsΒ represent a further step forward inΒ our strategyΒ toΒ develop a material exploration and production businessΒ focussing onshore in theΒ UKΒ and mainlandΒ Europe"
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 Nick Melson, Miranda Higham |
020 7466 5000 |
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Nominated Adviser and Broker -Β SeymourΒ Pierce Jonathan Wright, Sarah Jacobs |
020 7107 8000 |
Company Background
Egdon Resources plc is an establishedΒ UK-based exploration and production company primarily focused onΒ onshore explorationΒ and productionΒ inΒ the hydrocarbon-producing basins of theΒ UKΒ and mainlandΒ Europe.
Egdon holds interests inΒ twenty sevenΒ 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. 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.
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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