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19 Aug 2009 13:00
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Immediate Release 19Β AugustΒ 2009Β
EGDON RESOURCESΒ PLCΒ
("Egdon" or "the Company")
Planning Permission Granted for Kirkleatham Gas Field Development
Egdon Resources plcΒ (AIM:EDR),Β the UK-based exploration and production company focused on the hydrocarbon-producing basins of onshore UKΒ and Europe,Β isΒ pleased toΒ reportΒ that it has receivedΒ planningΒ approvalΒ forΒ theΒ Kirkleatham gas field development inΒ PEDL 068 inΒ North YorkshireΒ where Egdon holds a 20% interest andΒ is the Operator.
OnΒ 13 August 2009,Β Redcar and Cleveland Borough Council grantedΒ planningΒ consent for production from the existing Kirkleatham-4 well site, the construction of an underground pipeline to theΒ WiltonΒ site and for the drilling, testing and productionΒ forΒ up to two additional wellsΒ at the site.
Following aΒ detailed review ofΒ theΒ mostΒ likelyΒ schedule forΒ regulatory consents,Β procurement and construction of theΒ project,Β the joint venture partners have agreed toΒ move theΒ target completion ofΒ the project from late winter 2009/10Β to autumn 2010. This will allow forΒ constructionΒ duringΒ summer 2010Β and ensureΒ commissioning of the facilitiesΒ will occurΒ prior toΒ theΒ start of the 2010 winter gas seasonΒ in October. This will ensure that maximum revenues are realised from the project whilst enabling a more efficient use ofΒ cashΒ resources during the procurement and construction phase.
Commenting onΒ theΒ project,Β Mark Abbott,Β Managing Director of Egdon,Β said:Β
"The award ofΒ planning consent for KirkleathamΒ is a key milestoneΒ and we are pleased the project had strong local support. We nowΒ have a clearΒ scheduleΒ to ensureΒ gas sales for the start of the winter 2010 gas marketΒ whereΒ it is anticipated thatΒ revenues from the project will be maximised. Work has already started on putting in place all the agreements, contracts and regulatory approvals to achieve this."
For further information please contact:
EgdonΒ Resources plc
Mark Abbott Managing Director 01256 702292
Buchanan Communications
Ben Willey, Miranda Higham 020 7466 5000
Nominated Adviser and Broker -Β SeymourΒ Pierce
Jonathan Wright, Sarah Jacobs, Richard Redmayne 020 7107 8000
Company Background
Egdon Resources plc is an established UK-based exploration and production company primarily focused on onshore exploration and production in the hydrocarbon-producing basins of theΒ UKΒ andΒ Europe.
Egdon holds interests in twentyΒ threeΒ 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 has production from the KeddingtonΒ and KirklingtonΒ oil fieldsΒ in theΒ East MidlandsΒ and the Avington oil field in Hampshire.Β Further oil and gas production is anticipated from Waddock CrossΒ andΒ Eakring-Dukes WoodΒ during 2009Β with Kirkleatham to follow in 2010.Β
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 Resources plc Mark Abbott, a Geoscientist with over 23 years experience.
Kirkleatham Project Background
The Kirkleatham gas field is located to the west of the town ofΒ RedcarΒ in Egdon operated licence PEDL068. The Kirkleatham-4 exploration well was completed in January 2006 and encountered a 19m gas column in theΒ Permian ageΒ Cadeby Formation at a depth of 804.3 metres. Testing produced good quality gasΒ with minor amounts of H2SΒ at rates of up to 5 million cubic feet of gas per day. The well was completed as a future gas producer.
Evaluation of this stratigraphically trapped gas accumulation has indicated potential gas in place in the range 2 to 15.75Β billion cubic feet of gas ("BScf"). The currently provenΒ gas in place isΒ 2 BscfΒ andΒ it is planned toΒ produce the well and sell gas into the nearbyΒ WiltonΒ works.Β Β Monitoring of pressure data during production will help to determine the ultimate gas in placeΒ and recoveryΒ for the field. Potential exists to convert the depleted gas field into a gas storage facility conditional upon reservoir behaviourΒ during productionΒ and obtaining all required consents.
The PEDL068 Joint Venture partners are:
Egdon Resources U.K. Limited (20%) operator
Sterling Resources UK Limited (47%)
EnCoreΒ Petroleum LimitedΒ (20%)
YorkshireΒ Exploration Limited (8%)
Montrose IndustriesΒ Limited(5%)Β
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