Change of Operator PEDL343 (Cloughton)

Egdon Resources PLC

28 July 2023

 

28 July 2023

EGDON RESOURCES PLC

("Egdon" or "the Company")

Change of Operator PEDL343 (Cloughton)

Egdon Resources plc (AIM:EDR) the UK Energy Company advises that the North Sea Transition Authority has approved the transfer of operatorship of licence PEDL343 from Egdon Resources U.K. Limited to Europa Oil & Gas (Holdings) plc ("Europa").  The transfer is part of a process of ensuring that Egdon prioritises core projects whilst ensuring other potentially high value opportunities are progressed at pace.

We also note the release made today by Europa in relation to this which states the following;

"Europa Oil & Gas (Holdings) plc, the AIM traded UK and Ireland focused oil and gas exploration, development, and production company, is pleased to announce that it has assumed operatorship of licence PEDL343, which holds the Cloughton gas discovery.

Operatorship of the licence was transferred from Egdon Resources U.K. Limited ("Egdon") to Europa and approved by the North Sea Transition Authority, the industry regulator, with effect from 27 July 2023. The partners in PEDL343 are Europa (40 per cent), Egdon (40 per cent) and Petrichor (20 per cent).

The Cloughton field was discovered in 1986 and encountered gas throughout the Carboniferous section. The well tested at rates of up to 40,000 scf/day on natural flow, however with the right completion and production optimisation techniques, the Company believes that a well could flow at 6 mmscf/day. The gas is good quality sweet gas with >98% methane and ethane.

The discovery well encountered 60 metres of Carboniferous net sandstone reservoir with high gas saturations. Given the large areal closure and net sand present within the well there is a large volume of gas in place that has already been discovered. Cloughton is therefore a gas appraisal opportunity with the critical challenge being to obtain commercial flowrates from future production testing operations. A location for an appraisal well pad has been identified and following successful testing operations, the field would be monetised by connecting to the nearby gas grid. Such developments remain subject to securing necessary permits and approvals."

Commenting Mark Abbott, Managing Director of Egdon, said;

"This transfer of operatorship allows Egdon to maintain a clear focus on our near-term priority projects whilst also enabling Europa to apply its resources to progressing the Cloughton prospect to potential appraisal drilling operations as quickly as possible."

For further information please contact: 

Egdon Resources plc

Mark Abbott, Martin Durham                                                                           01256 702 292

Buchanan

Ben Romney, Jon Krinks                                                                                 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

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.

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