Farm-out of interests in PEDL253, Biscathorpe

RNS Number : 2113I

Egdon Resources PLC

20 March 2018

 

            20 March 2018

EGDON RESOURCES PLC

 ("Egdon" or "the Company")

Farm-out of interests in PEDL253, Biscathorpe   

Further to the announcement of 5 March 2018 Egdon Resources plc (AIM:EDR) is pleased to announce that it has signed a definitive Farm-out Agreement in respect to interests in PEDL253 to Union Jack Oil PLC ("UJO", AIM: UJO) and Humber Oil & Gas Limited ("Humber",private).  PEDL253 is located in Lincolnshire and contains the Biscathorpe Prospect, scheduled for drilling around mid-2018.

Under the terms already announced, UJO and Humber will each acquire 6% of Egdon's interest in PEDL253 by paying their pro-rata share of the Biscathorpe-2 well cost plus an additional £10,000 per percentage point interest acquired.  This is equivalent to a farm-in with a 1.36 times promote at the estimated well cost.  UJO and Humber will also each acquire 4% of Montrose Industries Limited's interest in PEDL253 under the same terms.

The transaction remains subject approval from the Oil and Gas Authority.  On completion the interests in PEDL253 will become:

Egdon Resources U.K. Limited (Operator)                    40.80% (29.31% share of well cost*)

Montrose Industries Limited.                                       27.20% (19.54% share of well cost*)

Union Jack Oil Plc                                                     22.00% (37.57% share of well cost*)

Humber Oil & Gas Limited                                          10.00 % (13.57% share of well cost*)

* at the current estimated well cost

For further information please contact:

Egdon Resources plc

Mark Abbott                                                                                 01256 702 292

Buchanan

Ben Romney, Anna Michniewicz                                                    020 7466 5000

Nominated Adviser and Broker - Cantor Fitzgerald Europe               

David Porter/Nick Tulloch (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)

 

Notes to Editors:

Biscathorpe-2

In March 2015 Egdon Resources U.K. Ltd, as operator of the licence area PEDL253, received planning permission from Lincolnshire County Council to drill a conventional exploratory oil well on farmland to the west of the hamlet of Biscathorpe, approximately nine kilometres to the west of Louth in Lincolnshire. An application to extend the existing planning for a further 3 years has been submitted to Lincolnshire Council.  An Environmental Permit has been issued for the proposed drilling and testing operations at the site.  The Biscathorpe Prospect is on trend with, and to the west of, the producing Keddington oil field (14 kilometres, Egdon operated) and the Saltfleetby gas field (20 kilometres).

The Mean Gross Prospective Resources at Biscathorpe are estimated by Egdon to be ca. 14 million barrels of oil and the well has been assessed by the Company as having a 40% chance of success. 

The proposals will involve conventional drilling for oil trapped in a sandstone reservoir and for clarity the operations at the site will not either now or in the future involve the process of hydraulic "fracking" for shale-gas or shale-oil. This area of Lincolnshire does not have the specific rock-formation types that contain shale-gas or shale-oil.

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 44 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.

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.

 

END

 

 

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