Egdon Resources plc (AIM:EDR) is pleased to announce that its wholly owned subsidiary Egdon Resources (New Ventures) Limited has been advised of the formal award of the Navacelles Permit in the South East Basin of onshore France.
The Navacelles Permit which covers an area of 216 square kilometres was awarded for a period of five years effective from 1 March 2010 and carries a financial commitment of 1.36 million Euros.
Egdon will be the operator of the Permit with a 60% interest. Egdon’s joint venture partners are Eagle Energy Limited (20%) and a subsidiary of Heyco International (20%).
Egdon’s evaluation of the licence area has identified a series of large anticlines where previously drilled wells have indicated the presence of gas in low-permeability limestone reservoirs. Egdon will investigate the potential for applying modern fracture stimulation techniques to enhance the productivity of the gas bearing limestones to achieve commercial flow rates. Egdon has also identified shale-gas potential within the licence area and this will form an integral part of our detailed evaluation.
Commenting on the award Mark Abbott, Managing Director of Egdon said;
“We are delighted to have been awarded the Navacelles Permit in the light of substantial competition, which included oil major Total. The permit contains a good mix of prospectivity, with the presence of gas bearing structures which are candidates for fracture stimulation, and the recognition of a potential shale-gas resource. We will now progress our detailed evaluation of Navacelles, starting with a review of all historical data and reprocessing of the existing 2D seismic data.”