19 Jul 2012 14:12
For Immediate Release | 19 July 2012 |
EGDON RESOURCES PLC
("Egdon" or "the Company")
Planning Granted for Westerdale-2 Well
Egdon Resources plc (AIM:EDR) is pleased to announce that, at today's meeting of the Planning Committee of the North York Moors National Park Authority, permission was granted for an exploratory borehole near the village of Westerdale in onshore Petroleum Exploration and Production Licence PEDL068, where Egdon is operator with a 40% interest.
The Westerdale-2 well is planned to evaluate the Ralph Cross/Westerdale gas discovery in an area up-dip of the Ralph Cross-1 well, drilled in 1966, which flowed gas from fractured limestone of the Permian age Brotherton Formation at a depth of 1040 metres below surface. Company evaluations have indicated the potential for between 5 and 38 billion cubic feet ("Bcf") of gas in place, with a most likely case of around 18 Bcf.
The Company had previously drilled a well in the Westerdale area in 2006. This well did not find commercial gas reserves and the site was subsequently restored to farmland.
The interest holders in PEDL068 are as follows:
Egdon Resources U.K. Limited (operator) 40.00%
Sterling Resources (UK) Limited 47.00%
Yorkshire Exploration Limited 8.00%
Montrose Industries Limited 5.00%
Commenting on the decision Mark Abbott, Managing Director of Egdon said:
"We are delighted that the National Park Authority has approved our application for the Westerdale-2 well. The final timing of the drilling will be dependent upon the conditions of planning, rig and contractor availability and final joint venture approval and is likely to be during 2013. We recognise the unique qualities of the North York Moors and in accordance with Egdon's Health, Safety and Environmental procedures will be doing everything possible to minimise the impact of our activities on the area."
For further information please contact:
Egdon Resources plc
Mark Abbott 01256 702292
Buchanan
Richard Darby, Gabriella Clinkard 020 7466 5000
Nominated Adviser and Broker - Seymour Pierce
Jonathan Wright (Corporate Finance) 020 7107 8000
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 Europe.
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.