Egdon Resources PLC Grant of Licence Extensions: P1929 and P2304 (7669U)
27 November 2019 - 6:00PM
UK Regulatory
TIDMEDR
RNS Number : 7669U
Egdon Resources PLC
27 November 2019
27 November 2019
EGDON RESOURCES PLC
("Egdon" or "the Company")
Grant of Licence Extensions: P1929 and P2304
Egdon Resources plc (AIM:EDR) is pleased to advise that the Oil
and Gas Authority ("OGA") has granted licence extensions to UK
offshore licences P1929 and P2304. Egdon's subsidiary, Egdon
Resources U.K. Limited ('ERUK'), is the operator and currently
holds a 100% interest in both licences.
The OGA has granted a six month extension to both P1929 and
P2304 ("The Licences") to 31 May 2020 with obligations as
follows:
1. By 31 January 2020, demonstrate to the OGA's satisfaction
that a farm-in agreement has been fully executed which provides for
funding of the licence work programme; and
2. By 31 March 2020, demonstrate to the OGA's satisfaction that
the Licensee is on track to deliver a future programme of 3D
seismic data acquisition across both Licences.
We anticipate further engagement with the OGA during the period
of the licence extension to agree the nature and timing of the
forward work programme and to reach agreement on the duration of a
further licence extension to accommodate these activities.
P1929 contains the Resolution gas discovery where a Competent
Persons Report by Schlumberger Oilfield UK PLC (April 2019)
reported estimates of 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 Zechstein reservoir in the 1966 gas
discovery made by Total in well 41/18-2. P2304 contains an
extension of the Resolution discovery and the Endeavour gas
discovery which Egdon estimates contains mean Contingent Resources
of 18 bcf, with a P90 to P10 range of 10 to 28 bcf.
Today's news follows from our announcement of 4 November 2019,
advising that ERUK had signed an exclusivity agreement (the
"Agreement") in respect of Licence P1929 and P2304 with a large
internationally recognised exploration and production company (the
"Counterparty").
Despite entry into the Agreement, no assurance can be provided
that a commercial transaction will ultimately be concluded with the
Counterparty. The Company will provide further updates in respect
of these matters in due course.
Commenting, Mark Abbott, Managing Director of Egdon Resources
plc, said:
"We are pleased to have secured extensions from the OGA for both
P1929 and P2304 which contain the Resolution and Endeavour gas
discoveries, key conventional projects for Egdon. This follows on
from our recent announcement of securing an Exclusivity Agreement
with a large internationally recognised exploration and production
company as our preferred partner for Resolution and Endeavour.
Today's news represents further positive progress for these
projects and results from the proactive and constructive engagement
between Egdon, the Counterparty and the OGA. Having secured the
licence extensions, our focus now turns to finalising a farmout
agreement and we look forward to updating shareholders on progress
in this regard in the New Year."
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 and Joint Broker - Cantor Fitzgerald
Europe
David Porter/ Rick Thompson (Corporate Finance) 020 7894 7000
Caspar Shand Kydd (Sales)
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 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.
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 2018 Petroleum Resources Management System (PRMS)
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), the Society of Petroleum Evaluation
Engineers (SPEE), the Society of Exploration Geophysicists (SEG),
the Society of Petrophysicists and Well Log Analysts (SPWLA) and
the European Association of Geoscientists & Engineers
(EAGE).
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 news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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