Egdon Resources plc (AIM:EDR) is pleased to provide an update on production for the first half of the Company’s 2019-2020 financial year (“H1 2020” or “the Period”) which ended on 31 January 2020.
Production during the Period was 32,758 barrels of oil equivalent (“boe”), at an average of 178 boe per day (“boepd”) (H1 2019: 30,026 boe, 164 boepd). This is in line with previous guidance for H1 of 170-180 b/d. The previously stated guidance of 130-140 boepd for the full year remains valid. Production was attained from the Ceres gas field and the Keddington and Fiskerton Airfield oil fields.
The Company’s interim results for H1 2020 are scheduled to be announced on 21 April 2020.
Commenting on the update, Mark Abbott, Managing Director of Egdon Resources plc, said:
“2020 has started positively for Egdon, with continued strong production across our portfolio, a positive outcome to the Wressle planning inquiry and the announcement of a farm-in by Shell U.K. Limited into our offshore Resolution and Endeavour projects.
Our current focus is on the Wressle field development, where we are working to discharge the planning conditions ahead of commencing site works. We will provide shareholders with a detailed update on Wressle and the Biscathorpe project following Joint Venture meetings in the coming weeks.”
Further to our announcement of 20 January 2020, Egdon Resources plc (AIM:EDR) is pleased to announce the signature of a Farm-In Agreement with Shell U.K. Limited (“Shell”) in relation to UK offshore licences P1929 and P2304 (“the Licences”) which contain the Resolution and Endeavour gas discoveries respectively.
Egdon subsidiary, Egdon Resources U.K. Limited (‘ERUK’) currently holds a 100% interest in both licences.
Under the terms of the farm-in agreement;
- Shell will acquire a 70% working interest in Licences P1929 and P2304, and be appointed as the licence operator
- ERUK will retain a 30% non-operated interest in the Licences
- As consideration, Shell will pay 85% of the costs of the acquisition and processing of a 3D seismic survey covering both the Resolution and Endeavour gas discoveries with the carry on the acquisition costs capped at US$5 million gross, beyond which it would pay 70% of the costs ; and
- Shell will also pay 100% of all studies and manpower costs up to a well investment decision on the Licences
The farm-in is conditional upon;
- Approval from the Oil & Gas Authority (“OGA”); and
- Agreement of a mutually acceptable forward work programme and timeline with the OGA
Egdon Resources plc (AIM:EDR) is pleased to report that the Planning Inspectorate has today upheld our appeal and granted planning consent for the development of the Wressle Oil Field in North Lincolnshire licences PEDL180 and PEDL182.
The Inspector also allowed the application for an award of costs against North Lincolnshire Council.
Mark Abbott Managing Director of Egdon Resources plc, said:
“I am delighted that the Planning Inspectorate has made this positive determination in relation to this important asset for Egdon and our JV partners.
We will now begin work on discharging the planning conditions and the detailed planning for the development works.
We will continue to keep shareholders and the local community informed.”
Wressle project page