7 Sep 2023 07:00
7 September 2023
EGDON RESOURCES PLC
("Egdon" or "the Company")
Farm-in and Equalisation of Interests - PL81 and PEDL347
Egdon Resources plc (AIM:EDR), the UK Energy Company, is pleased to advise that further to the announcement of 7 August 2023, Egdon, York Energy (UK) Holdings Limited ("York") and Cuadrilla North Cleveland Limited ("Cuadrilla") have executed a fully termed agreement to enable a farm-in and equalisation of interests between the PL81 and PEDL347 licences (The Agreement).
Under the terms of the Agreement Egdon, York and Cuadrilla shall procure that legal and beneficial interests in both PL081 and PEDL347 (the "Licences") are assigned between them so that both licences are held Egdon 52.5%, Cuadrilla 25% and York 22.5%. Egdon would be appointed as the operator of the Licences. Following recovery of Egdon's costs of the farm-in it will assign a further 2.5% interest in both the Licences to York.
As consideration Egdon will pay 100% of the costs associated with the planning, drilling, logging, and either short term testing and completion or plugging and abandonment of a well to optimally test the Weaverthorpe Prospect within the Licences (the "Work Programme"). Egdon will have a period of three years to complete the Work Programme.
The assignment of the Licence interests to Egdon, York and Cuadrilla and the transfer of operatorship to Egdon will be subject to the usual NSTA approvals.
The PL081 and PEDL347 licences contain the Weaverthorpe Prospect ("Weaverthorpe") which is a shallow (c. 1000 metres) Sherwood Sandstone (Triassic) conventional prospect located immediately up-dip of interpreted gas pay in the Fordon-2 well (drilled by BP in 1974). Egdon's technical and operational studies have confirmed Weaverthorpe as a material, commercially viable prospect.
Commenting on the Agreement Mark Abbott, Managing Director of Egdon, said:
"I am pleased we have been able to finalise this Agreement in a timely fashion and now look forward to working with York, Cuadrilla and our wider stakeholders on delivering the planned Work Programme."
For further information please contact:
Egdon Resources plc
Mark Abbott, Martin Durham 01256 702 292
Buchanan
Ben Romney, Barry Archer 020 7466 5000
Nominated Adviser & Joint Broker - WH Ireland Limited
Antonio Bossi, Chris Hardie, James Bavister 020 7220 1666
Joint Broker & Financial Advisors - VSA Capital Limited
Andrew Monk, Andrew Raca 020 3005 5000
Qualified Person Review
In accordance with the AIM Rules - Note for Mining and Oil and Gas Companies, this release has been reviewed by Mark Abbott, Managing Director of Egdon, who is a geoscientist with over 30 years' experience and is a member of the Petroleum Exploration Society of Great Britain and a Fellow of the Geological Society. Mr Abbott has consented to the inclusion of the technical information in this release in the form and context in which it appears.
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). Upon the publication of this announcement via Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.
About Egdon
Egdon Resources plc (LSE: EDR) is an established UK-based energy company focused on onshore exploration and production in the UK.
Egdon holds interests in 33 licences in the UK and has an active programme of exploration, appraisal and development within its portfolio of oil and gas assets. Egdon is an approved operator in the UK. Egdon was formed in 1997 and listed on AIM in December 2004.