The Resolution gas discovery on licence P1929 is an early North Sea discovery made by Total in 1966.
Egdon was awarded Licence P1929 containing the Resolution discovery -then called the A Prospect -in April 2013 covering offshore blocks 41/18 and 41/19 located adjacent to the North Yorkshire coast. The licence, awarded as a result of 26th UK Seaward Licensing Round, is a Traditional Licence with Egdon Resources U.K. Limited currently holding a 30% non -operated interest having farmed out to Shell.
- In April 2019 we announced the results of a Competent Person’s Report (“CPR”) prepared by Schlumberger Oilfield UK PLC in relation to the Resolution gas discovery. Schlumberger has made independent estimates of mean Contingent Gas Resources of 231bcf that can be attributed to the Zechstein reservoir in the 1966 gas discovery made by Total in well 41/18-2 (UK). Dynamic reservoir modelling indicates the potential for gas flow rates between 17-22 MMscfd per well.
- The later Endeavour discovery tested gas at rates of 14.9 MMscfd (41/24-1) to 34.3 MMscfd (41/24-3) is a potential satellite development to Resolution with mean Prospective Resources of 18 bcf gas (Egdon’s estimate).
- In addition, exploration upside exists in the underlying Carboniferous (tight gas).
on 20 January 2020 we announced a Farm-In Agreement with Shell U.K. Limited. Shell has acquired a 70% working interest in Licences P1929 and P2304, and has been appointed as the licence operator
Latest news 25 August 2020
Egdon Resources plc (AIM:EDR) is pleased to advise the completion of the Farm-In Agreement with Shell U.K. Limited (“Shell”) in respect of offshore licences P1929 and P2304 (“the Licences”) which contain the Resolution and Endeavour gas discoveries.
The OGA has approved the transfer of a 70% interest and operatorship in both licences and the associated documentation including Joint Operating Agreements in respect of both licences has now been executed.
Egdon retains a 30% interest in the Licences. Under the terms of the Farm-In Agreement, Shell will pay 85% of the costs of the acquisition and processing of the 3D seismic survey covering both the Resolution and Endeavour gas discoveries. Under the terms of the Licences, this work needs to be completed by 31 May 2021. The carry on the acquisition costs will be capped at US$5 million gross, beyond which Egdon would pay 30% of the survey costs. Furthermore, Shell will also pay 100% of all studies and manpower costs through to the well investment decision on the Licences.
Commenting on the news, Mark Abbott, Managing Director of Egdon Resources plc, said:
“We are delighted to have completed the transfer of interest and operatorship to Shell in respect of these important, and potentially valuable, licences for Egdon. The focus will now be on progressing appraisal activity on the Resolution and Endeavour gas discoveries.
The first part of this activity will be the acquisition of a marine 3D seismic survey during Q1 2021. We look forward to building on our good working relationship with Shell and benefiting from their substantial worldwide operational experience and expertise.”