4 Dec 2008 12:44
| For immediate release | 4 December 2008 |
EGDON RESOURCES PLC
("Egdon" or "the Company")
Results of Annual General Meeting and Operational Update
The Directors of Egdon Resources plc are please to announce that at the Annual General Meeting held at the offices of Buchanan Communications at 11.30 am on 4 December 2008 all resolutions put before the meeting were duly passed.
At the meeting the Managing Director Mark Abbott presented a review of the business and its plans for 2009 which is now available on the Company's website www.egdon-resources.com.
The Company would also like to provide a brief update on some of its current operations.
In licence PEDL118 (Egdon 100% interest) the Company is pleased to advise that the Dukes Wood-1 exploration well was spudded on 18 November 2008. The top-hole section of the well was drilled and cased to a depth of 47 metres before suspending the well until a larger rig becomes available to undertake directional drilling operations, expected to be, in the first quarter of 2009. The Dukes Wood-1 well will be drilled directionally to a planned measured depth of around 800 metres to test the crestal part of the Dukes Wood anticline in an area where Egdon have identified potential for undrained oil and re-migrated oil. The primary target for the well will be the Ashover Grit reservoir with secondary reservoir objectives in the Sub-Alton Crawshaw, Loxley Edge Rock and Wingfield Flags intervals. A previous well from this part of the structure was re-entered in 1992 and produced 180 barrels of oil during a short swab test from the upper interval of the Ashover Grit indicating the presence of recoverable oil in this part of the field. The PEDL118 licence has also been extended into its second licence period which expires on 31 January 2013.
Just to the south of the Eakring-Dukes Wood field is the shut-in Kirklington oil field in 13th Round licence PEDL203 (Egdon 100% interest). Kirklington which produced from the Sub-Alton Crawshaw and Chatsworth Grit reservoirs has been shut-in since 2004. Egdon believe that over half a million barrels could remain recoverable from the field via a sidetrack of the existing Kirklington-2 well. Egdon is in the process of concluding the agreements to acquire the Keddington-2 well site and anticipates production will be restarted from the existing well by year end.
Planning consent has been received from Dorset County Council for testing operations at Waddock Cross in Dorset licence PL090 (Egdon 45% interest). The Company is currently working to discharge all of the planning conditions and anticipates testing operations will commence during the first half of 2009.
The Company has been advised by Star Energy, the operator of Hampshire licence PEDL070 (Egdon 20% interest) which contains the Avington Oil Field, that pressure gauges have been run into the production wells this week in anticipation of recommencing oil production operations during December.
Commenting on the recent operations and the near term strategy of the Company, Mark Abbott, Managing Director of Egdon said;
"As set out in our post-demerger strategy, the Company continues to focus on production and development projects designed to increase our near-term revenue and cash flow. We are making good progress in this regard and look forward to increasing levels of production from continuing oil production at Keddington, the restoration of production at Avington and the restarting of production at Kirklington during December. The early part of 2009 will see the drilling and evaluation of the Dukes Wood-1 well, planned testing at Waddock Cross and enhancement of production levels at Keddington. We also look forward to concluding a gas sales agreement for Kirkleatham and the commencement of gas sales during 2009.
Egdon has an excellent portfolio of exploration projects in the UK and France and we remain committed to adding shareholder value through the drill-bit. As such we are currently marketing farm-out opportunities with the aim of bringing forward drilling activity on a number of our projects.
The Company has sufficient cash resources for our planned 2009 programme of work and we are well positioned for growth during the current market and commodity price environment"
For further information please contact:
| Egdon Resources plc Mark Abbott Managing Director | 01256 702292 |
| Buchanan Communications Ben Willey, Miranda Higham | 020 7466 5000 |
| Nominated Adviser and Broker - Seymour Pierce Richard Redmayne, Jonathan Wright, Sarah Jacobs | 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 the UK and mainland Europe.
Egdon holds interests in twenty-five 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 currently has production from the Keddington oil field in the East Midlands. Further oil and gas production is anticipated from Avington, Kirkleatham, Waddock Cross, Eakring-Dukes Wood and Kirklington by the end of 2009.
Egdon Resources plc listed on AIM in January 2008, following the demerger of its gas storage business, Portland Gas plc. The pre-demerged business was formed in 1997 and listed on AIM in December 2004.
In accordance with AIM 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 22 years experience.