28 Jun 2013 07:00
For immediate release | 28 June 2013 |
EGDON RESOURCES PLC
("Egdon" or "the Company")
Planning Approval for Waddock Cross Development (PL090)
Egdon Resources plc (AIM:EDR) is pleased to announce that Dorset County Council has granted planning permission for the development of the Waddock Cross oil field in onshore Production Licence PL090, located around 10 kilometres to the east of the town of Dorchester.
The detailed planning consent allows for the retention of the existing site for a period of ten years for oil production from the two existing wells, and the drilling of a sidetrack and two new boreholes for further appraisal of the field and production of oil.
An Environmental Permit has also been granted for the site by the Environment Agency.
Subject to satisfaction of the planning conditions and approval of the Field Development Plan by the Department of Energy and Climate Change, it is anticipated that production will commence during the third quarter of 2013 at initial gross rates of around 30-40 barrels of oil per day. Waddock Cross is mapped by Egdon as containing mean in-place volumes of over 30 million barrels of oil in the Lower Jurassic age Bridport Sandstone. The plan for the first phase of the development is to drill two further horizontal producer wells by 2015. Egdon estimate gross Proven and Probable Reserves for the field for this initial phase to be about 300,000 barrels of oil.
The interests in the Waddock Cross oil field are currently:
Egdon Resources U.K. Limited 45.00% (Operator)
First Oil Expro Limited 26.25%
Aurora Exploration Limited 18.75%
Dorset Exploration Limited 10.00%
Union Jack plc holds an option to purchase the 10% interest in PL090 (including Waddock Cross) and the neighbouring licence PEDL237 currently held by Dorset Exploration Limited (a wholly owned subsidiary of Egdon) for a cash consideration of £560,000. This option is exercisable until 31 July 2013.
Commenting on the approval Mark Abbott, Managing Director of Egdon said:
"We are delighted by the award of planning consent, which is a key step in progressing to the first commercial production from our Dorset licences and a new source of revenue for Egdon. We look forward to advising shareholders of first oil from the field which is expected before the end of September."
For further information please contact:
Egdon Resources plc
Mark Abbott, Jerry Field 01256 702292
Buchanan
Richard Darby, Gabriella Clinkard, Tom Hufton 020 7466 5000
www.buchanan.uk.com
Nominated Adviser and Broker - Cantor Fitzgerald Europe
David Porter, Rick Thompson (Corporate Finance) 020 7894 7000
Richard Redmayne (Corporate Broking)
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).
Proven and Probable Reserves are as defined in the SPE/WPC Standard. Oil in-place is as defined in the SPE/WPC Standard.