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Egdon Resources PLC (EDR)

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Wednesday 06 January, 2021

Egdon Resources PLC

Resolution 3D Survey Update

RNS Number : 6885K
Egdon Resources PLC
06 January 2021
 

 

  6 January 2021

EGDON RESOURCES PLC

 ("Egdon" or "the Company")

Resolution 3D Survey Update

Egdon Resources plc (AIM: EDR, "Egdon") provides an update on the timing of the 3D seismic survey over the Resolution gas discovery in offshore licences P1929 and P2304.

 

Shell Oil U.K. Limited ("Shell"), the operator of offshore licences P1929 and P2304, has advised Egdon that the marine 3D seismic survey, planned over the Resolution and Endeavour gas discoveries is now anticipated to be acquired in February 2022 rather than Q1 2021.  This follows the results of a revised environmental impact assessment and extensive stakeholder engagement in respect of the planned survey.  This work concluded that the commercial impact on local fishing businesses, along with potential impacts on marine mammalian movements, breeding season for sea birds and tourism, meant that the optimum time window to successfully acquire seismic data in 2021 was during February, not March/April as originally anticipated.  

 

Unfortunately, it was not possible to finalise all of the required agreements in respect of managing the fishing vessels operating in the survey area within the timeframe necessary to enable the survey to take place in February 2021.

 

As such, and subject to the OGA consenting to an amendment to the licence obligations, it is now intended to undertake the survey in February 2022, to enable all agreements with commercial and other stakeholders to be finalised well in advance of the planned survey.

 

 

For further information please contact:

Egdon Resources plc

Mark Abbott / Martin Durham  01256 702 292

 

Buchanan

Ben Romney, Chris Judd  020 7466 5000

 

Nominated Adviser & Joint Broker - WH Ireland Limited 

Chris Hardie  020 7220 1666

Lydia Zychowska

 

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 focused on onshore exploration and production in the hydrocarbon-producing basins of the UK. 

Egdon holds interests in 41 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.

Resolution and Endeavour Gas Discoveries

A Competent Person's Report prepared by Schlumberger Oilfield UK PLC (April 2019) reported Mean Contingent Gas Resources of 231 billion cubic feet of gas ("bcf"), with a P90 to P10 range of 100 to 389 bcf, attributable to the Resolution gas discovery (P1929). The Resolution discovery was made by Total in 1966 when well 41/18-2 flow tested gas from the Permian aged Zechstein carbonate (limestone) reservoir.  Additionally, Egdon estimates that the Endeavour gas discovery (P2304) contains Mean Contingent Resources of 18 bcf, with a P90 to P10 range of 10 to 28 bcf.

Egdon Resources plc has completed a farm-out to Shell U.K. Limited ("Shell") in respect of offshore licences P1929 and P2304 which contain the Resolution and Endeavour gas discoveries. Under the terms of the farm-out Egdon has transferred a 70% interest and operatorship in both licences.  Egdon retains a 30% interest in the Licences.  Under the terms of the farm-out, Shell will pay 85% of the costs of the acquisition and processing of the 3D seismic survey covering both the Resolution and Endeavour gas discoveries. The carry on the acquisition costs will be capped at US$5 million gross, beyond which Egdon would pay 30% of the survey costs. Furthermore, Shell will also pay 100% of all studies and manpower costs through to the well investment decision on the Licences.

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.

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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