Egdon Resources plc (AIM:EDR) is pleased to announce that it has reached agreement with Celtique Energie Petroleum Ltd. (“Celtique”) to acquire an additional 40% interest in Lincolnshire Licence PEDL241 for a nominal consideration.
Under the terms of the agreement, Egdon will increase its interest in the licence from 40% to 80%. PEDL241 contains the North Kelsey Prospect which is located approximately 10 kilometres to the south of the Wressle-1 discovery well in PEDL180. The prospect is defined on 3D seismic data and has potential for up to four stacked conventional reservoir intervals in the Chatsworth, Beacon Hill, Raventhorpe and Santon sandstones. The estimate of gross mean combined Prospective Resources for these multiple objectives, as calculated by Egdon is 6.7 million barrels of oil. Planning Consent was received for the North Kelsey-1 well in December 2014. Timing of well operations is restricted by planning conditions and as such it is now anticipated that they will commence during Q1 2016.
The transfer of interest is subject to approval by the Oil and Gas Authority.
Following completion of this transaction (and a separate transaction between Union Jack Oil plc and Celtique) the interests in PEDL241 and the planned North Kelsey-1 well will be:
Egdon Resources U.K. Limited 80% (Operator)
Union Jack Oil plc 20%
Under the terms of a farm-in agreement with Union Jack plc, Egdon will be carried by Union Jack for 10% of the North Kelsey-1 well costs.