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Egdon Resources PLC - PEDL241 (North Kelsey) Alignment of Interests

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 7th 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 £100,000 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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