23 Dec 2011 07:00
FOR IMMEDIATE RELEASE 23 December 2011
EGDON RESOURCES PLC
("Egdon" or "the Company")
Sale of interests in PEDL 118 and 203
Egdon Resources plc (AIM:EDR) is pleased to report that it has reached agreement with Nautical Petroleum AG, a wholly owned subsidiary of Nautical Petroleum plc ("Nautical"), to sell 15% interests in onshore UK Petroleum Exploration and Development Licences ("PEDLs") PEDL118 and PEDL203 located in Nottinghamshire.
The consideration comprises a cash sum payable on completion of £200,000 and the payment of £150,000 towards Egdon's costs of the next well to be drilled on PEDL118 or PEDL203. The effective date of the transaction is 31 December 2011.
PEDL203 contains the Kirklington-3z producing well which was drilled in 2010 and produced at rates of 15-20 bopd. The Kirklington oil field has all consents and approvals in place for production but is currently shut-in awaiting development of Dukes Wood-1.
The contiguous licence PEDL118 contains the abandoned Eakring-Dukes Wood oil field where the Dukes Wood‑1 well was drilled and tested in 2010, with the Ashover Grit "AG4" reservoir interval producing at rates of around 20 bopd. It is intended to dual-complete the Dukes Wood-1 well for production from the AG4 reservoir and for water disposal in the Sub Alton Crawshaw interval. The development has received planning consent and is awaiting environmental and other approvals before being brought into production in conjunction with Kirklington in the first quarter of 2012.
Egdon has also identified a number of independent targets on the Eakring/Dukes Wood structure including previously undrilled highs such as Eakring North where additional wells may be drilled at some future point.
The transfers of interest are subject to amongst other things approval by the Department of Energy and Climate Change.
Following completion the interests in the licences will be as follows:
PEDL118
Egdon Resources U.K. Limited 50%
Terrain Energy Limited 25%
Nautical Petroleum AG 15%
Angus Energy Eakring Development Ltd 10%
PEDL203
Egdon Resources U.K. Limited 50%
Terrain Energy Limited 25%
Nautical Petroleum AG 15%
Angus Energy Kirklington Development Ltd 10%
Commenting on the sale Egdon's Managing Director Mark Abbott said:
"This transaction provides a useful cash injection to Egdon ahead of the development of the Dukes Wood-1 well which is expected towards the end of first quarter of 2012. The deal also provides Egdon with a substantial carry on the next well to be drilled in the area."
For further information please contact:
Egdon Resources plc
Mark Abbott 01256 702292
Buchanan Communications
Richard Darby, James Strong, Gabriella Clinkard 020 7466 5000
Nominated Adviser and Broker - Seymour Pierce
Jonathan Wright, Sarah Jacobs (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 one 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 25 years' experience.