Grant of Licence Extensions: P1929 and P2304

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:

  1. 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
  2. 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.”

27 November 2019

Results for the year ended 31 July 2019

Egdon Resources plc (AIM: EDR), a UK-based exploration and production company primarily focused on the hydrocarbon-producing basins of onshore UK, today announces its audited Results for the year ended 31 July 2019 (“the Period”).  

View or Download Results for the year ended 31 July 2019

View or Download Annual Report 2019   

View or Download Form of Proxy 2019

19 November 2019

Wressle Development Public Inquiry Concluded

Egdon Resources plc (AIM:EDR) is pleased to provide an update on the Wressle Development Public Inquiry.

The Wressle Development Public Inquiry concluded yesterday, having commenced on 5 November 2019 in Scunthorpe, Lincolnshire.  The inquiry lasted just three days, including a site visit, instead of the planned six days.  As previously announced North Lincolnshire Council presented no evidence against the appeal. An application for costs has also been submitted.

With a general election underway and resultant Planning Inspectorate purdah we expect a verdict on our appeal after 12 December 2019 but probably before the end of the year.

Commenting, Mark Abbott, Managing Director of Egdon Resources plc, said:

“We presented a very strong case, supported by detailed evidence and agree with the conclusions of the Council’s own professional planning officer. This was reinforced by an expert third party review undertaken on behalf of the Council, who recommended our revised application for approval ahead of the November 2018 decision.”

8 November 2019

Government Moratorium on Hydraulic Fracturing for shale-gas

Egdon Resources plc (AIM:EDR) notes the announcement by government that it will introduce a temporary moratorium on hydraulic fracturing for shale gas. (Read more…)

4 November 2019

P1929 and P2304 Farm-out Exclusivity Agreement

Egdon Resources plc (AIM:EDR) is pleased to provide an update on the farm-out process in relation to the Resolution and Endeavour gas discoveries in UK offshore licences P1929 and P2304 respectively. Egdon subsidiary, Egdon Resources U.K. Limited (‘ERUK’), is the operator and currently holds a 100% interest in both licences.

(Read more…)

4 November 2019
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