Egdon Resources plc (AIM:EDR) is pleased to announce the results of an independent assessment prepared by ERC Equipoise Ltd (“ERCE” or “Competent Person”) in relation to certain UK Onshore Licences in which Egdon holds an interest.
ERCE has provided an independent assessment of the undiscovered gas initially in place (GIIP) of ten Northern England licences – of which eight were awarded in the recent 14th Round and two are from the 13th Round. This assessment has applied the same methodologies used by ERCE in its April 2014 report on seven of Egdon’s licences and ERCE’s May 2014 report on the acquisition of nine of Alkane Energy plc’s licences which was completed in June 2014.
ERCE has reported, an estimated Mean undiscovered GIIP of approximately 20 trillion cubic feet (“TCF”) of gas net to Egdon, with a range from approximately 7 to 38 TCF. When added to the 2014 assessment, ERCE’s independent estimates of Mean undiscovered GIIP attributable to Egdon increases to approximately 48 TCF with a range of approximately 18 to 86 TCF.
ERCE’s letter to Egdon’s Board of Directors summarising the findings of the assessment has been published on the Company’s website.
ERCE’s estimates of undiscovered GIIP are subject to exploration risk, which may be considerable. ERCE has not assessed this risk as no Prospective Resources have yet been attributed to these properties by Egdon and ERCE, and further geoscientific and engineering data need to be acquired to be able to quantify these resources. ERCE notes that mining of the overlying coal measures has occurred in a number of the licences, which may affect site access and drilling operations. In the case where Prospective Resources are identified within these licences, there is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources.
Commenting on the report, Mark Abbott, Managing Director of Egdon Resources plc, said:
“We are pleased that this latest ERCE report has confirmed the significant potential gas resource that may exist within certain of our licences, with a 71% increase in net Egdon estimated Mean undiscovered GIIP to 48TCF.”