Egdon Resources plc (AIM:EDR) is pleased to announce that Dorset County Council has granted planning permission for the development of the Waddock Cross oil field in onshore Production Licence PL090, located around 10 kilometres to the east of the town of Dorchester.
The detailed planning consent allows for the retention of the existing site for a period of ten years for oil production from the two existing wells, and the drilling of a sidetrack and two new boreholes for further appraisal of the field and production of oil.
An Environmental Permit has also been granted for the site by the Environment Agency.
Subject to satisfaction of the planning conditions and approval of the Field Development Plan by the Department of Energy and Climate Change, it is anticipated that production will commence during the third quarter of 2013 at initial gross rates of around 30-40 barrels of oil per day. Waddock Cross is mapped by Egdon as containing mean in-place volumes of over 30 million barrels of oil in the Lower Jurassic age Bridport Sandstone. The plan for the first phase of the development is to drill two further horizontal producer wells by 2015. Egdon estimate gross Proven and Probable Reserves for the field for this initial phase to be about 300,000 barrels of oil.
The interests in the Waddock Cross oil field are currently:
|Egdon Resources U.K. Limited||45.00% (Operator)|
|First Oil Expro Limited||26.25%|
|Aurora Exploration Limited||18.75%|
|Dorset Exploration Limited||10.00%|
Union Jack plc holds an option to purchase the 10% interest in PL090 (including Waddock Cross) and the neighbouring licence PEDL237 currently held by Dorset Exploration Limited (a wholly owned subsidiary of Egdon) for a cash consideration of £560,000. This option is exercisable until 31 July 2013.
Commenting on the approval Mark Abbott, Managing Director of Egdon said:
“We are delighted by the award of planning consent, which is a key step in progressing to the first commercial production from our Dorset licences and a new source of revenue for Egdon. We look forward to advising shareholders of first oil from the field which is expected before the end of September.”