PEDL241 - Acquisition of Additional Interest

RNS Number : 3033P

Egdon Resources PLC

05 June 2015

 

            5th June 2015

EGDON RESOURCES PLC

("Egdon" or "the Company")

PEDL241 - Acquisition of Additional Interest

Egdon Resources plc (AIM:EDR) is pleased to announce that it has reached agreement with Celtique Energie Petroleum  Ltd. ("Celtique") to acquire an additional 40% interest in Lincolnshire Licence PEDL241 for a nominal consideration.

Under the terms of the agreement, Egdon will increase its interest in the licence from 40% to 80%.  PEDL241 contains the North Kelsey Prospect which is located approximately 10 kilometres to the south of the Wressle-1 discovery well in PEDL180.  The prospect is defined on 3D seismic data and has potential for up to four stacked conventional reservoir intervals in the Chatsworth, Beacon Hill, Raventhorpe and Santon sandstones.  The estimate of gross mean combined Prospective Resources for these multiple objectives, as calculated by Egdon is 6.7 million barrels of oil.  Planning Consent was received for the North Kelsey-1 well in December 2014.  Timing of well operations is restricted by planning conditions and as such it is now anticipated that they will commence during Q1 2016.

The transfer of interest is subject to approval by the Oil and Gas Authority.

Following completion of this transaction (and a separate transaction between Union Jack Oil plc and Celtique) the interests in PEDL241 and the planned North Kelsey-1 well will be:

Egdon Resources U.K. Limited                        80% (Operator)

Union Jack Oil plc                                                 20%

Under the terms of a farm-in agreement with Union Jack plc, Egdon will be carried by Union Jack for 10% of the North Kelsey-1 well costs.

For further information please contact:

Egdon Resources plc

Mark Abbott, Jerry Field                                                                                          01256 702 292

Buchanan

Richard Darby, Anna Michniewicz                                                                         020 7466 5000

Nominated Adviser and Broker - Cantor Fitzgerald Europe

David Porter, Sarah Wharry (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 thirty four 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 potential recoverable hydrocarbons 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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