Egdon Resources plc (AIM:EDR) notes the release made this morning by Europa Oil and Gas (Holdings) plc (“Europa”) in respect of PEDL143 where Egdon holds an 18.4% interest. Europa included the following statements;
Europa “is pleased to announce it has received notification from the Oil & Gas Authority that the PEDL 143 Licence in the Weald Basin, Surrey, UK, has been extended by two years until 1 October 2018. This will enable Europa to drill the conventional Holmwood prospect (‘Holmwood’), which has estimated gross mean unrisked prospective resources of 5.6 million barrels of oil (‘mmbo’) in Portlandian and Corallian sandstones and a P90 – P10 range of resources of 1 to 11mmbo, in late 2016 / H1 2017, subject to funding.
PEDL143 is located in an area of the Weald Basin where 30 million barrels have been produced to date from 14 oil and gas fields. The Holmwood prospect is located 5km to the south of the Brockham oil field, which was discovered by BP in 1987 and today produces oil from Portlandian sandstone reservoirs. Holmwood is also 12km to the west of the Horse Hill-1 well in PEDL137 where UK Oil & Gas Investments PLC (‘UKOG’) has reported production at a combined average stable rate of over 1,688 bopd from Upper and Lower Kimmeridge Limestone reservoirs and Upper Portland sandstone reservoir during flow tests.
Planning permission is in place for a deviated exploration well to be drilled at Holmwood which will penetrate similar stratigraphy to Horse Hill, targeting oil in Upper and Lower Kimmeridge Limestones in addition to Corallian and Portlandian sandstones. The 5.6mmbo gross mean unrisked prospective resources at Holmwood do not include any estimate for the Jurassic limestones which have been found to be producing in Horse Hill.“
During 2015 Egdon completed a farmout to UKOG in respect of the Holmwood-1 well whereby UKOG will pay 40% of the well cost to earn a 20% interest from Egdon up to a cap of £1.2 million net to UKOG.