26 Jul 2013 07:00
26 July 2013
EGDON RESOURCES PLC
("Egdon" or "the Company")
Planning Approval for Burton on the Wolds-1 (PEDL201)
Egdon Resources plc (AIM:EDR) is pleased to announce that it has been notified by Leicestershire County Council that Planning Consent has been granted for the drilling of an exploratory borehole on the Burton on the Wolds Prospect in UK Onshore Petroleum Exploration and Production Licence PEDL201, located on the southern margin of the Widmerpool Gulf geological basin.
The Burton on the Wolds Prospect has been mapped on proprietary 2D seismic data which was acquired by Egdon in May 2011. Evaluation has highlighted a conventional oil prospect with targets at two distinct Carboniferous stratigraphic levels. The shallower target, the Rempstone Sandstone, is productive at the nearby Rempstone oil field. A seismic anomaly, possibly indicative of a carbonate reef, underlies the Rempstone Sandstone and provides a deeper secondary target. The mean combined Prospective Resources for the two target objectives, as calculated by Egdon are estimated to be 3.8 million barrels of oil1.
The planned vertical well will be relatively shallow with a drilled depth of around 1000 metres. It has been designed to intersect both targets in a structurally favourable position near the crest of the Burton on the Wolds structure.
The interests in Licence PEDL201 are:
Egdon Resources U.K. Limited 32.50% (operator)
Celtique Energie Petroleum Limited 32.50%
Terrain Energy Limited 12.50%
Corfe Energy Limited 12.50%
Union Jack Oil plc 10.00%
As a result of a series of farm-outs announced on 20 February 2012 and 19 February 2013, Egdon's net share of the cost of the Burton on the Wolds-1 well will be 15%.
Commenting on the approval Mark Abbott, Managing Director of Egdon said:
"We are pleased that Leicestershire County Council has approved our application for the drilling of the Burton on the Wolds-1 exploration well and we can now look forward to the commencement of drilling operations later in 2013. The prospect combines a lower risk reservoir target offsetting nearby production with a higher risk, higher potential play which is at present untested in the basin."
For further information please contact:
Egdon Resources plc
Mark Abbott, Jerry Field 01256 702292
Buchanan
Richard Darby, Gabriella Clinkard, Tom Hufton 020 7466 5000
Nominated Adviser and Broker - Cantor Fitzgerald Europe
David Porter, Rick Thompson (Corporate Finance) 020 7894 7000
Richard Redmayne (Corporate Broking)
1 Prospective Resources are those quantities of petroleum which are estimated, on a given date, to be potentially recoverable
from undiscovered accumulations
Notes to Editors:
Egdon Resources plc
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 and France.
Egdon currently holds interests in thirty 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 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.
Evaluation of potential recoverable hydrocarbons has been assessed in accordance with 2007 Petroleum Resources Management System prepared by the Oil and Gas Reserves Committee of the Society of Petroleum Engineers (SPE) and reviewed and jointly sponsored by the World Petroleum Council (WPC), the American Association of Petroleum Geologists (AAPG) and the Society of Petroleum Evaluation Engineers (SPEE).