Egdon Resources PLC PEDL241 (North Kelsey) Alignment of Interests (9722B)
14 October 2020 - 5:00PM
UK Regulatory
TIDMEDR
RNS Number : 9722B
Egdon Resources PLC
14 October 2020
14 October 2020
EGDON RESOURCES PLC
("Egdon" or "the Company")
PEDL241 (North Kelsey) Alignment of Interests
Egdon Resources plc (AIM:EDR) is pleased to announce an
agreement with Union Jack Oil plc ( "Union Jack") to align our
equity interests in PEDL241, and to jointly pursue a farmout for
the drilling of the North Kelsey-1 exploration well.
The North Kelsey Prospect is a drill ready conventional oil
prospect along trend from and analogous to the Wressle oil
development - which lies some 15 km to the northwest - and has been
mapped from 3D seismic data to have potential for oil in up to four
stacked conventional Carboniferous reservoir targets. Egdon
estimates that the Prospective Resources range from 4.66 million
barrels up to 8.47 million barrels, with a Mean Resource volume of
6.47 million barrels.
On 7(th) September we announced an extension of the existing
planning consent for drilling North Kelsey-1 to 31 December 2021.
We have also received the requisite permits from the Environment
Agency.
Under the terms of the agreement Union Jack will acquire a
further 30% interest in the licence for a cash consideration of
GBP100,000 with the previous farm-in obligations terminating. Egdon
will retain operatorship and a 50% interest in the licence. The
transaction is subject to consent from the Oil and Gas
Authority.
Upon completion of the acquisition the interests held in PEDL241
will be as follows:
Company Previous Interest New Interest
============================== ================== ===============
Egdon Resources U.K. Limited 80% (Operator) 50% (Operator)
Union Jack Oil plc 20% 50%
Commenting on the agreement, Mark Abbott, Managing Director of
Egdon Resources plc, said:
"We are pleased to have reached agreement with Union Jack to
fully align our interests and objectives in PEDL241 prior to a
planned joint farmout of the drill ready North Kelsey-1 exploration
well. All consents are in place to drill at North Kelsey , a
Wressle analogue, providing a further potentially material value
catalyst for Egdon during 2021."
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 43 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 27 years'
experience.
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).
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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