Egdon Resources PLC Fiskerton Airfield Oil Field Acquisition (8642U)
27 October 2017 - 11:31PM
UK Regulatory
TIDMEDR
RNS Number : 8642U
Egdon Resources PLC
27 October 2017
27 October 2017
EGDON RESOURCES PLC
("Egdon" or "the Company")
Completion of Fiskerton Airfield Oil Field Acquisition
Egdon Resources plc (AIM:EDR) is pleased to announce the
completion of the acquisition of the producing Fiskerton Airfield
oil field in Lincolnshire licence EXL294 announced 10 July
2017.
Egdon Resources U.K. Limited (or "the Company") has acquired a
100% interest in, and operatorship of the Fiskerton Airfield oil
field from Cirque Energy (UK) Ltd ("Cirque") for a cash
consideration of $750,000.
The effective date of the acquisition is 1 January 2017. The
field sales averaged 16 barrels of oil per day ("bopd") in the
second half of the recently closed Egdon financial year
(February-July 2017) the field having been shut in for repairs
during January 2017.
The field is currently producing circa 16 bopd from one of two
production wells (FA-3). Egdon plans to enhance the cash flows and
profitability of the operation by increasing production initially
to between 30 and 40 bopd via low cost well interventions. During
the next few months it is planned to workover both the currently
producing FA-3 and the shut-in FA-1 wells by installing new tubing,
pumps and isolating water producing zones.
For further information please contact:
Egdon Resources plc
Mark Abbott 01256 702 292
Buchanan
Richard Darby, Anna Michniewicz 020 7466 5000
Nominated Adviser and Broker - Cantor Fitzgerald Europe
David Porter (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)
AIM Rule Disclosure
The acquisition of the interest in the Fiskerton Airfield oil
field is a substantial transaction as defined in the AIM Rules for
Companies ("AIM Rules"). With respect to disclosures required under
the AIM Rules for substantial transactions, due to a lack of
historical financial information available to the Company with
respect to Cirque's activities at the oil field, the Company is not
able to provide disclosure on the profits or losses attributable to
the interest in the Fiskerton Airfield oil field in this
announcement. Egdon has a thorough understanding of current and
likely future operating costs on the field and the costs of the
planned workovers. The Company will record the acquisition in its
books at the purchase cost.
Notes to Editors:
Fiskerton Airfield - The Fiskerton Airfield oil field is located
approximately 7 kilometres to the East of the City of Lincoln. The
field was discovered in 1997 and cumulative production has totalled
around 440,000 barrels of oil from the most likely mapped Oil in
Place estimated at 2.2 million barrels. The oil is of good quality
(35.2degAPI) and is exported by road tanker to Immingham, North
East Lincolnshire. Egdon estimate that in excess of 100,000 barrels
of oil remain recoverable from the existing wells. The second
producing well (FA-1) is currently shut-in awaiting a workover. The
field also has a dedicated water disposal well to reinject produced
water into the reservoir for pressure support (FA-2). The field has
suffered from a lack of investment in recent years.
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 43 licences in the UK 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 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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