Government Reintroduction of Moratorium

RNS Number : 5206E

Egdon Resources PLC

28 October 2022

 

 

28 October 2022

EGDON RESOURCES PLC

("Egdon" or "the Company")

Government Reintroduction of the Moratorium on Shale Gas Extraction

The directors of Egdon Resources plc (AIM:EDR), a UK focused energy company, note yesterday's Written Ministerial Statement (WMS) from the Rt Hon Grant Schapps MP, Secretary of State for the   Department of Business, Energy and Industrial Strategy, in which he reintroduced the moratorium on hydraulic fracturing for shale-gas.

Commenting, Mark Abbott, Managing Director of Egdon Resources plc, said:

"This is a highly disappointing and illogical move by the Government, just a few weeks after lifting the moratorium and at a time of an ongoing energy supply and cost crisis.  The decision prevents the immediate development of a safe and secure indigenous source of gas and if maintained, locks the UK into long term reliance on more carbon intensive LNG imported from Qatar, the shale-gas fields of the USA and elsewhere. 

We will continue to make the scientific and commercial case that shale-gas should be part of the long-term solution to the UK's energy needs and that this can be done in a safe and environmentally sustainable manner whilst delivering material economic and geopolitical benefits for the UK.

Our shareholders can take some comfort from the fact that throughout this chaotic period of government, Egdon's core conventional oil and gas business has continued to generate strong revenues and cash flow and that the fundamentals of the business remain strong."

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 

Chris Hardie, Megan Liddell  020 7220 1666

Joint Broker & Financial Advisors - VSA Capital Limited

Andrew Monk, Andrew Raca   020 3005 5000

Egdon's Shale Gas Assets

Egdon's holds a material shale-gas acreage position in Northern England covering a net area of 664 square kilometres (km²) (164,280 net acres) with estimated Mean volumes of undiscovered gas in place of 37.6 trillion cubic feet of gas (independently assessed by ERCE in 2016).  Egdon's core area, is the Gainsborough Trough of Nottinghamshire, Lincolnshire and Yorkshire, where the Company holds interests in 288 km² (71,361 net acres).   The results from the 2019 Springs Road-1 well (Egdon 14.5%) compare favourably with some of the best US commercial shale operations and highlight a potentially world class resource in the prospective Gainsborough Shale. Egdon also retains interests in the Widmerpool Basin and Humber Basin of the East Midlands, the Cleveland Basin of NE England and the Blacon Basin of NW England. 

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 36 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.

Qualified Person Review

In accordance with the AIM Rules - Note for Mining and Oil and Gas Companies, this release has been reviewed by Mark Abbott, Managing Director of Egdon, who is a geoscientist with over 30 years' experience and is a member of the Petroleum Exploration Society of Great Britain and a Fellow of the Geological Society.  Mr Abbott has consented to the inclusion of the technical information in this release in the form and context in which it appears.

This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

 

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