Egdon Resources plc (AIM:EDR) is pleased to announce that it has reached agreement in respect of a farm-out of an interest in PEDL182 to Union Jack Oil PLC (“Union Jack”, AIM: UJO).
Licence PEDL182 is located in Lincolnshire to the immediate north of PEDL180. In May 2013, Union Jack farmed into the Wressle-1 exploration well and earned an 8.33% interest in PEDL180 and that part of the Wressle-1 discovery determined to extend into PEDL182. Under the terms of this new farm-out, Union Jack will earn an 8.33% interest in the remainder of PEDL182 beyond Wressle in return for paying 12.495% of the cost of a future exploration well to evaluate the Broughton North prospect together with associated back costs of £64,000.
Upon completion and subject to approval from the Oil and Gas Authority, the interests held in each of PEDL180 and PEDL182 will be aligned and will be:
Egdon Resources U.K. Limited 25.00% (Operator)
Celtique Energie Petroleum Ltd. 33.33%
Europa Oil & Gas Limited 33.34%
Union Jack Oil PLC 8.33%
Commenting on the transaction, Mark Abbott, Managing Director of Egdon said:
“We are pleased to welcome Union Jack as a partner once again following on from their participation in the Wressle discovery, the drilling of the Keddington-5 side-track and the Laughton-1 exploration well in 2016, and the planned Biscathorpe and North Kelsey exploration wells in PEDL253 and PEDL241 respectively.
This farm-out helps to optimise the balance of risk and reward for the Company in exploration of the remainder of PEDL182 where geological risks have been greatly reduced following the Wressle discovery in 2014. We believe that aligning the interests of the parties over the entirety of both PEDL180 and PEDL182 will facilitate the development of the Wressle Field and further exploration.”