Egdon Resources has been active in exploration and production in the Cleveland Basin in the North East since 2000 and has drilled several exploration wells and developed the Kirkleatham gas field on PEDL068.  Planned activity on our current licences includes drilling an exploration well on the A prospect in P1929 from onshore to offshore or from an offshore location and further drilling at Kirkleatham and Westerdale. Under the Third Energy operated 14th Round awards activity will include potential appraisal of the Cloughton Tight Gas field and exploration of the new Tees licence surrounding Kirkleatham.

The planned fracking by Third Energy of its KM-8 tight gas discovery may open up an exciting new play in the region in Q4 2017/Q1 2018 with read through to Cloughton

Offshore, our non-operated Ceres gas field continues to outperform expectations in late field life

Onshore

Licences Operator Egdon Interest Area km² Exploration Targets Work programme
PEDL068 Egdon Resources U.K. Limited 68.00% 83.20 Shale and Conventional Exploration Evaluating future development options at Kirkleatham
PEDL259 Third Energy Onshore Limited 33.33% 139.00 Shale and Tight Gas Exploration Commitment in first five years; drill 1 well or drop licence
PEDL343 Third Energy Onshore Limited 17.50% 110.00 Shale and Tight Gas Exploration

Cloughton Tight Gas Discovery. Commitment in first five years; new 3D, drill 1 well or drop licence

KM-8 fracking results will be of interest Q4 2017/Q1 2018

PEDL258 Egdon Resources U.K. Limited 100.00%  0.13 Conventional – Purely to secure surface location for A Prospect Well deviated into offshore licence P1929 Commitment in first five years; drill 1 well or drop licence

Offshore

Licences Operator Egdon Interest Area km² Exploration Targets Work programme
P.1241 Centrica Energy 10.00% 43.00 Producing Gas field Operator planning for extended field lifeBackout repayment underwayflow meter installation planned for 2018 to allow primary production to restart
P.1929 Egdon Resources U.K. Limited 100.00% 360.00 Conventional Exploration Upgraded mean prospective gas resource estimated at 337bcfOffshore well cost comparable with onshore to offshore well and has lower delivery risk (technical and planning)Minimum offshore facility development being considered – gas processing in both cases onshore3D seismic acquisition planned to optimise appraisal drilling programmeSeeking farm-in/technology partner prior to seismic and drilling
P.2304 Egdon Resources U.K. Limited 100.00% 166.00 Conventional Exploration The licence contains a mapped extension of the Resolution gas accumulation and an additional proven gas discovery. We will now work to integrate our evaluation of the new licence into our detailed understanding of P1929 with a view to progressing appraisal of the proven gas resources in the combined area.