Egdon Resources plc (AIM:EDR) is pleased to advise that the Oil and Gas Authority (“OGA”) has approved various licence extensions and conversions of licences to new model terms, and the relinquishment of one Egdon operated licence.
The OGA has offered holders of existing UK Onshore licences the opportunity to adopt 14th Round licence terms which allow licensees to nominate areas to be retained in exchange for additional work programmes. Egdon has elected to follow this path on four operated licences and one further non-operated licence where the partnership has also decided to accept the new licensing terms.
- The first term of licence P1929 (Egdon 100%) covering UKCS Blocks 41/18 + 41/19 and containing the “A Prospect” has been extended by two years to 19 April 2019 to allow time for Egdon to secure the required permits and to plan and drill a well from an onshore location to appraise this 1966 gas discovery. It has not been possible to complete this process without an onshore licence over the drill-site although this will be addressed by the award of new 14th Round licences to Egdon, and we currently expect to finalise and submit a planning application to drill when these new licences are confirmed.
- The first six year term for PEDL241 (Egdon 80%) containing the drill-ready North Kelsey oil prospect has been extended by one further year to 30 June 2017. (Egdon Resources UK Limited 80% and Union Jack Oil plc 20%)
- The first term for PEDL253 containing the drill-ready Biscathorpe oil prospect has been extended by one further year to 30 June 2017. (Egdon Resources UK Limited 52.8%, Montrose Industries Limited 35.2% and Union Jack Oil plc 12%)
- PEDL201 has adopted the new 14th Round licence terms and will continue without further relinquishment. (Egdon Resources UK Limited 32.5%, Celtique Energie Petroleum Ltd 32.5%, Corfe Energy Limited 12.5%, Terrain Energy Limited 12.5% and Union Jack Oil plc 10%)
- PEDL202 has adopted the new 14th Round licence terms and will continue without further relinquishment. (Egdon Resources UK Limited 100%)
- PEDL209 has adopted the new 14th Round licence terms and will continue without further relinquishment. (Egdon Resources UK Limited 50%, Blackland Park Exploration Limited 28%, Stelinmatvic Industries Limited 12% and Union Jack Oil plc 10%)
- PEDL191 has adopted the new 14th Round licence terms and will continue without further relinquishment. (Egdon Resources UK Limited 100%)
PEDL237 in the Wessex basin has been relinquished as the partners concluded that the bulk of the prospectivity in the area lay in PL090 surrounding Waddock Cross and that resources should be concentrated on that asset.
Non-operated licence changes
We note operator Europa Oil & Gas plc’s announcement that PEDL181 (Egdon Resources UK Limited 25%) in the Humber Basin will continue into its second term following the completion of first term work commitments and partial relinquishment.
IGas operated PEDL169 has adopted new 14th Round terms and will continue without further relinquishment. (IGas 80%, Egdon Resources UK Limited 20%)
Commenting on the changes, Mark Abbott, Managing Director of Egdon Resources plc, said:
“Following on from the recently announced extension of the Europa operated licence PEDL143 containing the Holmwood prospect, we are pleased to have also been allowed additional time to drill our exciting operated onshore oil prospects at North Kelsey and Biscathorpe, and the offshore “A Prospect” which Egdon estimates may contain recoverable reserves of approximately 160 billion cubic feet of gas
In addition we are pleased to have been able to adopt the new 14th Round terms for several of our existing licences which will allow us to further evaluate the unconventional resource potential of the retained areas
The relinquishment of PEDL237 is in line with Egdon’s strategy to focus on fewer, high potential areas ”