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.”
The Directors of Egdon Resources plc are pleased to announce that at the Annual General Meeting held at the offices of Norton Rose Fulbright on 19 December 2019, all resolutions put before shareholders at the meeting were duly passed
At the meeting, Managing Director Mark Abbott presented a review of the business. The presentation will be available and can be accessed from the Company’s website: www.egdon-resources.com.
Egdon Resources plc (AIM:EDR) is pleased to advise that the Oil and Gas Authority (“OGA”) has granted licence extensions to UK offshore licences P1929 and P2304. Egdon’s subsidiary, Egdon Resources U.K. Limited (‘ERUK’), is the operator and currently holds a 100% interest in both licences.
The OGA has granted a six month extension to both P1929 and P2304 (“The Licences”) to 31 May 2020 with obligations as follows:
- By 31 January 2020, demonstrate to the OGA’s satisfaction that a farm-in agreement has been fully executed which provides for funding of the licence work programme; and
- By 31 March 2020, demonstrate to the OGA’s satisfaction that the Licensee is on track to deliver a future programme of 3D seismic data acquisition across both Licences.
We anticipate further engagement with the OGA during the period of the licence extension to agree the nature and timing of the forward work programme and to reach agreement on the duration of a further licence extension to accommodate these activities.
P1929 contains the Resolution gas discovery where a Competent Persons Report by Schlumberger Oilfield UK PLC (April 2019) reported estimates of mean Contingent Gas Resources of 231 billion cubic feet of gas (“bcf”) with a P90 to P10 range of 100 to 389 bcf, attributable to the Zechstein reservoir in the 1966 gas discovery made by Total in well 41/18-2. P2304 contains an extension of the Resolution discovery and the Endeavour gas discovery which Egdon estimates contains mean Contingent Resources of 18 bcf, with a P90 to P10 range of 10 to 28 bcf.
Today’s news follows from our announcement of 4 November 2019, advising that ERUK had signed an exclusivity agreement (the “Agreement”) in respect of Licence P1929 and P2304 with a large internationally recognised exploration and production company (the “Counterparty”).
Despite entry into the Agreement, no assurance can be provided that a commercial transaction will ultimately be concluded with the Counterparty. The Company will provide further updates in respect of these matters in due course.
Commenting, Mark Abbott, Managing Director of Egdon Resources plc, said:
“We are pleased to have secured extensions from the OGA for both P1929 and P2304 which contain the Resolution and Endeavour gas discoveries, key conventional projects for Egdon. This follows on from our recent announcement of securing an Exclusivity Agreement with a large internationally recognised exploration and production company as our preferred partner for Resolution and Endeavour.
Today’s news represents further positive progress for these projects and results from the proactive and constructive engagement between Egdon, the Counterparty and the OGA. Having secured the licence extensions, our focus now turns to finalising a farmout agreement and we look forward to updating shareholders on progress in this regard in the New Year.”