Fiskerton Airfield Oil Field Acquisition

RNS Number : 8642U

Egdon Resources PLC

27 October 2017

 

                27 October 2017

EGDON RESOURCES PLC

 ("Egdon" or "the Company")

Completion of Fiskerton Airfield Oil Field Acquisition

Egdon Resources plc (AIM:EDR) is pleased to announce the completion of the acquisition of the producing Fiskerton Airfield oil field in Lincolnshire licence EXL294 announced 10 July 2017.

Egdon Resources U.K. Limited (or "the Company") has acquired a 100% interest in, and operatorship of the Fiskerton Airfield oil field from Cirque Energy (UK) Ltd ("Cirque") for a cash consideration of $750,000.

The effective date of the acquisition is 1 January 2017.  The field sales averaged 16 barrels of oil per day ("bopd") in the second half of the recently closed Egdon financial year (February-July 2017) the field having been shut in for repairs during January 2017.

The field is currently producing circa 16 bopd from one of two production wells (FA-3).    Egdon plans to enhance the cash flows and profitability of the operation by increasing production initially to between 30 and 40 bopd via low cost well interventions.  During the next few months it is planned to workover both the currently producing FA-3 and the shut-in FA-1 wells by installing new tubing, pumps and isolating water producing zones.

For further information please contact:

Egdon Resources plc

Mark Abbott                                                                              01256 702 292

Buchanan

Richard Darby, Anna Michniewicz                                               020 7466 5000

Nominated Adviser and Broker - Cantor Fitzgerald Europe               

David Porter (Corporate Finance)                                                 020 7894 7000

Caspar Shand Kydd / Alex Pollen (Sales)

Joint Broker - VSA Capital Limited

Andrew Monk (Corporate Broking)                                               020 3005 5000

Andrew Raca (Corporate Finance)

AIM Rule Disclosure

The acquisition of the interest in the Fiskerton Airfield oil field is a substantial transaction as defined in the AIM Rules for Companies ("AIM Rules").  With respect to disclosures required under the AIM Rules for substantial transactions, due to a lack of historical financial information available to the Company with respect to Cirque's activities at the oil field, the Company is not able to provide disclosure on the profits or losses attributable to the interest in the Fiskerton Airfield oil field in this announcement.      Egdon has a thorough understanding of current and likely future operating costs on the field and the costs of the planned workovers.  The Company will record the acquisition in its books at the purchase cost. 

Notes to Editors:

Fiskerton Airfield - The Fiskerton Airfield oil field is located approximately 7 kilometres to the East of the City of Lincoln.  The field was discovered in 1997 and cumulative production has totalled around 440,000 barrels of oil from the most likely mapped Oil in Place estimated at 2.2 million barrels.  The oil is of good quality (35.2°API) and is exported by road tanker to Immingham, North East Lincolnshire. Egdon estimate that in excess of 100,000 barrels of oil remain recoverable from the existing wells. The second producing well (FA-1) is currently shut-in awaiting a workover. The field also has a dedicated water disposal well to reinject produced water into the reservoir for pressure support (FA-2).  The field has suffered from a lack of investment in recent years.

Egdon Resources plc (LSE: EDR) is an established UK-based exploration and production company focused on onshore exploration and production in the hydrocarbon-producing basins of the UK. 

Egdon holds interests in 43 licences in the UK 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 26 years' experience. 

Evaluation of hydrocarbon volumes has been assessed in accordance with 2007 Petroleum Resources Management System prepared by the Oil and Gas Reserves Committee of the Society of Petroleum Engineers (SPE) and reviewed and jointly sponsored by the World Petroleum Council (WPC), the American Association of Petroleum Geologists (AAPG) and the Society of Petroleum Evaluation Engineers (SPEE).

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.

 

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