Independent Gas in Place Estimates

RNS Number : 4722F

Egdon Resources PLC

25 April 2014

 



25 April 2014                                                                                      Embargoed for 7.00am

EGDON RESOURCES PLC

("Egdon" or "the Company")

Independent Gas in Place Estimates of some of Egdon's

Northern England Licences

Egdon Resources plc (AIM:EDR) is pleased to announce a summary of the results of an independent review of the shale-gas potential of some of Egdon's Northern England licences.

ERC Equipoise Ltd ("ERCE"), the independent reservoir evaluation specialists, has completed a review of undiscovered gas initially in place ("GIIP") in certain of Egdon's licences where potential for shale-gas exists within the Carboniferous age Bowland-Hodder sequence, as defined by the British Geological Survey in their report of 2013^[1].

ERCE has reported net Egdon estimated mean GIIP of approximately 18 trillion cubic feet of gas ("TCF") with a range of approximately 8 to 31 TCF and a mid-case of 15 TCF in seven of Egdon's Licences.  The ERCE letter will be published on the Egdon website later today.

ERCE's estimates of undiscovered GIIP are subject to exploration risk, which may be considerable. ERCE has not assessed this risk as no Prospective Resources have yet been attributed to these properties by Egdon, and further geoscientific data need to be acquired to be able to quantify these resources. ERCE notes that mining of the overlying coal measures has occurred in a number of the licences, which may affect site access and drilling operations.

In the case Prospective Resources are identified within these licences, there is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources.

For further information please contact:

Egdon Resources plc

Mark Abbott, Jerry Field                                                                                      01256 702292

Buchanan

Richard Darby, Gabriella Clinkard                                                                   020 7466 5000

Nominated Adviser and Broker - Cantor Fitzgerald Europe

David Porter, Tom Sheldon (Corporate Finance)                                          020 7894 7000

Richard Redmayne (Corporate Broking)

Joint Broker - VSA Capital Limited

Andrew Monk, (Corporate Broking)                                                                   020 3005 5000

Andrew Raca (Corporate Finance)

Notes to Editors:

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 France. 

Egdon currently holds interests in twenty seven 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 26 years' experience.

Evaluation of undiscovered gas initially in place 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).

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^[1]Andrews, I.J. 2013. The Carboniferous Bowland Shale gas study: geology and resource estimation. British Geological Survey for Department of Energy and Climate Change, London, UK.

 

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