Extension to Licence PEDL143
The Management of Egdon Resources plc (AIM:EDR) have been advised by Europa Oil and Gas, the operator of Weald Basin licence PEDL143, that the Department of Energy and Climate Change has agreed to a two year extension of the licence to October 2012.The licence extension is in response to the time taken to complete the planning process for the Holmwood-1 exploration well. The operator has also advised that Surrey County Council Planning Department should be in a position to submit their recommendation to the Council Planning Committee in March 2010, and dependent upon a positive outcome to this application, a well could be drilled in late 2010 or early 2011.
Update on Drilling Plans
The Directors of Egdon Resources plc (AIM:EDR) today provide an update on planned drilling operations on its East Midlands Properties.As previously reported the Dukes Wood-1 well in Nottinghamshire licence PEDL118 was planned to commence prior to year end. However, delays in release of the rig from the previous operator has led to a short delay and the rig will now mobilise to the Dukes Wood well site during the first week of the New Year.In addition, the Company is pleased to announce that it has entered into a second contract with British Drilling and Freezing Limited for the drilling of two further wells at the Kirklington and Keddington oil fields in licences PEDL203 and PEDL005(Remainder) respectively. The Kirklington-3 well will be a sidetrack of the existing Kirklington-2 production well and will target previously un-drained areas of the field. This well will be drilled immediately following completion of operations at Dukes Wood. It is then intended to move the rig to drill the Keddington-3 well which will be drilled as a sidetrack of Keddington-2y, again to access un-drained areas of the field and increase overall production levels.Further announcements will be made as appropriate as this three well drilling programme progresses.
Completion of sale of interests to Terrain Energy Limited
The Directors’ of Egdon Resources plc (AIM:EDR) are pleased to announce that completion of the sale of interests in four onshore UK licences to Terrain Energy Limited (“Terrain”) took place on 8 December 2009.The interests acquired by Terrain are all located in the East Midlands and comprise a 15% interest in PEDL005 (Remainder), and 25% interests in PEDL203, PEDL118 and PEDL206 respectively. Egdon retains a 75% operated interest in all of these licences.The total value of the transaction to Egdon will be £687,500, £450,000 of which has been received with a further £237,500 payable on a staged basis on commencement of specific drilling activity on licences PEDL005(Remainder), PEDL118 and PEDL203.
AGM Voting Results and Proxy Appointments
At the Egdon Resources plc annual general meeting held on Thursday 3rd December 2009 the following resolutions were proposed by the Chairman and passed unanimously by shareholders on a show of hands. Proxies were received by the Company from shareholders prior to the meeting as set out against the resolutions.ORDINARY RESOLUTIONSProxies For (of votes cast)Proxies Against (of votes cast)Total proxy votes cast as % of shares in issue1. To receive the Report and Accounts for the year ended 31 July 2009 100.00% nil% 36.32%2. To re-appoint Nexia Smith & Williamson Audit Limited as auditors at a remuneration to be determined by the Directors 100.00%nil% 36.35% 3. To re-elect Mark Abbott 100.00% nil% 36.35% 4. To re-elect Andrew Hindle 99.91% 0.09% 36.35% 5. To grant the directors authority to allot shares on the basis set out in the Notice of AGM 99.99% 0.01% 36.32% SPECIAL RESOLUTIONS 6. To disapply pre-emption rights on the basis set out in the Notice of AGM 99.99% 0.01% 36.35% 7. To amend the articles of association of the Company. 99.99% 0.01% 36.35%
Note to the disclosureAny proxy appointments which gave discretion to the proxy have been included in the “for” total.
Results of AGM
The Directors of Egdon Resources plc are please to announce that at the Annual General Meeting held at the offices of Buchanan Communications at 11.30 am on 3 December 2009 all resolutions put before the meeting were duly passed.At the meeting the Managing Director Mark Abbott presented a review of the business and its plans for 2010 which is now available on the Company's website www.egdon-resources.com. (see below)View or download AGM Presentation
Operations Update - Dukes Wood-1 Well
The Directors of Egdon Resources plc (AIM:EDR), the UK-based exploration and production company primarily focused on the hydrocarbon-producing basins of onshore UK and Europe, are pleased to give an update on the planned drilling operations at Dukes Wood-1 in Nottinghamshire licence PEDL118. The Company has entered into a contract with British Drilling and Freezing Limited (“BDF”) to use the BDF28 drilling rig to complete the drilling of the main section of Dukes Wood-1. The BDF28 drilling rig will mobilise to Dukes Wood-1 on completion of operations for another company which is currently anticipated to be in early December.The Dukes Wood-1 well was drilled and cased to a depth of 47m in November 2008 and will now be re-entered and drilled directionally to a planned measured depth of around 800 metres. The well will test the crest of the Dukes Wood anticline in an area where Egdon have identified potential for un-drained and re-migrated oil. A previous well in this part of the structure was re-entered in 1992 and produced 180 barrels of oil during a short test from the upper interval of the Ashover Grit indicating the presence of recoverable oil. Operations are expected to take around twelve days. The primary target for the well will be the Ashover Grit reservoir interval with secondary reservoir objectives in the Sub-Alton Crawshaw, Loxley Edge Rock and Wingfield Flags all oil bearing on the structure. This is the first well in the evaluation of the rejuvenation potential of the Eakring-Dukes Wood oil field where Egdon have identified low risk opportunities to add production, revenues and reserves.Egdon is the operator of the PEDL118 licence. Egdon has contracted, subject to regulatory and other approvals, to sell a 25% interest to Terrain Energy Limited, and on completion, which is expected shortly, Egdon will hold a 75% interest and Terrain a 25% interest in the licence.Further announcements will be made on commencement of drilling operations and then following results of the well, expected to be known later in December 2009.View or download full release
Holding in Company
The Company was notified on 17 November 2009 that, as a result of a disposal of ordinary shares in Egdon Resources ("Ordinary Shares") on 16 November 2009, Hargreave Hale Limited now holds 12,824,871 Ordinary Shares (with an equivalent amount of voting rights) which represents approximately 16.9 per cent. of the issued Ordinary Share voting capital of the Company.8,685,000 of the Ordinary Shares held by Hargreave Hale Ltd. are held for unit trusts operated by Malborough Fund Managers Ltd for whom Hargreave Hale Ltd. manages the portfolio of investments on a discretionary basis.
Annual Report and Accounts
The Company announces that it has sent to shareholders its report and accounts for the year ended 31 July 2009. The report and accounts are also available to be downloaded from the Company's website at www.egdon-resources.com.
Sale of Licence Interests to Terrain Energy Limited
Egdon farms down selected UK onshore interests for a consideration of £687,500Egdon Resources plc (AIM:EDR) is pleased to announce that the Company has reached agreement to sell a package of interests in four onshore UK licences to Terrain Energy Limited ("Terrain"). The interests to be acquired are all located in the East Midlands and comprise of a 15% interest in PEDL005 (Remainder), and 25% interests in PEDL203, PEDL118 and PEDL206 respectively. Following completion Egdon will hold a 75% operated interest in all of these licences.The total value of the transaction to Egdon will be £687,500, with £450,000 payable in cash on completion and a further £237,500 payable on a staged basis on commencement of specific drilling activity on licences PEDL005(Remainder), PEDL118 and PEDL203. From completion, Terrain will also be paying its share of all expenses and receiving its share of all revenues from the licences.PEDL005 (Remainder) contains the producing Keddington oil field and the North Somercotes gas prospect. It is intended to drill a sidetrack of the Keddington 2y well later in 2009 and a planning application is currently being prepared for an exploration well at North Somercotes. PEDL203 contains the producing Kirklington oil field where a sidetrack well is planned to access additional oil reserves and boost daily production rates from the field. PEDL118 contains the Eakring-Dukes Wood oil field which is the subject of a staged rejuvenation project where the Dukes Wood-1 well will complete drilling later in 2009. PEDL206 is a 13th Round exploration licence containing the abandoned Kelham and Caunton oil fields and is under technical evaluation. A drill or drop decision will be made on this licence by 30 June 2011.The transaction is subject to regulatory approval by the Department of Energy and Climate Change and in the case of PEDL005(Remainder) approval by licence partners.Terrain Energy Limited is an exploration and production company set up to develop a portfolio of interests in the oil and gas producing basins of the onshore UK. The investors in Terrain are EIS funds and a Venture Capital Trust under the management or advice of Calculus Capital and the board of Terrain comprises individuals with considerable financial, operational and legal experience in the oil and gas sector.Commenting on the transaction, Mark Abbott, Managing Director of Egdon said;
"We are pleased to welcome Terrain Energy as a partner on these licences. As previously reported Egdon had been looking to farm-out interests in the Eakring-Dukes Wood and Kirklington projects where we held a 100% interest and in the North Somercotes gas prospect where we held a 90% interest. This transaction introduces a partner capable of joining Egdon in developing these projects further and provides Egdon with additional cash resources to undertake its near-term work programme. "
Commenting on the proposed investment, John Glencross, Managing Director of Calculus Capital said;
"We are delighted that Terrain’s first investment brings us into partnership with Egdon Resources. Egdon is an experienced and respected operator in the UK energy market and we look forward to working with them to further develop these fields."
Proposed Acquisition of UK and French assets from EnCore Oil plc
The Directors of Egdon Resources plc are pleased to announce that the Company is in advanced negotiations to acquire a portfolio of UK and French assets from EnCore Oil plc (“EnCore”).The assets to be acquired would comprise of EnCore’s entire interest in 10 onshore UK licences, 2 onshore French licences and an interest in the Ceres gas field on the UKCS.The consideration, which will be satisfied in Egdon Ordinary Shares, will be finalised as part of the contract negotiations and the transaction will be structured so that on completion EnCore’s ownership will not exceed 29.9% of the enlarged share capital.The transaction is subject to final agreement of terms, completion of detailed due diligence, and shareholder and regulatory approval.Egdon and EnCore expect to make further announcements in due course.Commenting on the negotiations, Mark Abbott, Managing Director of Egdon said;
“This proposed transaction would mark a step change for Egdon’s portfolio. The assets significantly strengthen our opportunity base in the UK and France, with the Ceres field providing further near-term production and cash-flow coupled with the increased interest in the Kirkleatham gas field development to a more material 40% level. We also welcome the confidence placed in Egdon’s ability to add value to these assets by the management of EnCore through its shareholding in the Company.”
Commenting on the negotiations, Alan Booth, EnCore’s Chief Executive Officer said:
“We believe that by combining these assets with those of Egdon, we would expose our shareholders to more easily recognisable value in a more material portfolio of similar onshore assets. Egdon, as a committed and well established onshore player would be better placed to develop and add significant value to the enlarged asset base.“We are firmly of the view that it is possible to build a meaningful onshore E&P business, however this will need both scale and management focus. It is our view that this transaction would enable Egdon to accelerate its transition into a significant onshore E&P player.”
For further information please contact:Egdon Resources plcMark Abbott Managing Director01256 702292Buchanan CommunicationsBen Willey, Miranda Higham020 7466 5000Nominated Adviser and Broker – Seymour PierceRichard Redmayne, Jonathan Wright, Sarah Jacobs020 7107 8000
Notes to Authors
The EnCore Assets:The package of assets included in the deal are listed below:Onshore UK LicenceEquity (%)OperatorPEDL068 Cleveland Basin20.0Egdon ResourcesPEDL256 Weald Basin7.5Northern PetroleumPEDL125 Weald Basin10.0Northern PetroleumPEDL126 Weald Basin10.0Northern PetroleumPEDL154 Weald Basin10.0Northern PetroleumPEDL155 Weald Basin10.0NP Weald LimitedPEDL098 Wessex Basin7.5Northern PetroleumPEDL240 Wessex Basin7.5Northern PetroleumPEDL253 Humber60.0 EnCoreOnshore France LicenceEquity (%)OperatorMairy Paris Basin 30.0LundinNimes Rhone Graben100.0 EnCoreUKCS - CeresLicenceEquity (%)OperatorP.1241 Southern North Sea10.0CentricaEgdon Resources plcEgdon Resources plc is an established UK-based exploration and production company primarily focused on onshore exploration and production in the hydrocarbon-producing basins of the UK and Europe.Egdon holds interests in twenty three licences in the UK and France and has an active programme of exploration, appraisal and development within its balanced portfolio of oil and gas assets. Egdon is an approved operator in both the UK and France.Egdon has production from the Keddington and Kirklington oil fields in the East Midlands and the Avington oil field in Hampshire. Further oil and gas production is anticipated from Waddock Cross and Eakring-Dukes Wood during 2009 with Kirkleatham to follow in 2010.Egdon Resources plc listed on AIM in January 2008, following the demerger of its gas storage business, Portland Gas plc. The pre-demerged business was formed in 1997 and listed on AIM in December 2004.www.egdon-resources.comEnCore Oil plcEnCore Oil plc (LSE:EO.) is an oil and gas exploration and production (E&P) company quoted on AIM.It is not the Company’s aim to build a full cycle E&P company. The principal strategy is to create shareholder value through the successful exploration and appraisal of prospects and discoveries. The Company will seek to monetise or exchange the asset at the appropriate point in its life cycle and return value directly to shareholders wherever possible.EnCore has an experienced and proven management team, a number of whom were responsible for the discovery of the Buzzard field in the UK North Sea, which currently produces over 10 per cent. of the UK’s total oil production.All EnCore’s commercial and material technical evaluations are undertaken in-house by the EnCore team. This brings both continuity to the management and development of the assets and an ownership that is vital to unearth the best and most creative new ideas and opportunities.www.encoreoil.co.ukIn accordance with AIM rules - guidance for mining, oil and gas companies, the information contained in this announcement has been reviewed and signed off by the Managing Director of Egdon Resources plc Mark Abbott, a Geoscientist with over 23 years experience.View or download full release
Holding in Company
The Company was notified on 15 September 2009 that, as a result of a disposal of ordinary shares in Egdon Resources ("Ordinary Shares") on 14 September 2009, F&C Asset Management plc holds 3,772,558 Ordinary Shares (with an equivalent amount of voting rights) which represents approximately 5 per cent. of the issued Ordinary Share voting capital of the Company.
Holding in Company
Egdon has been informed by Heyco Energy Holdings, S.L. that it has transferred its entire shareholding in the Company, consisting of 6,861,434 ordinary shares, to Heyco International Inc. This transfer makes no change in ultimate beneficial ownership. Heyco Energy Holdings, S.L. has ceased to have any holding in the Company and Heyco International Inc. now holds 6,861,434 ordinary shares in the Company which is approximately 9.1% of the issued share capital of the Company.The Net Profit Interests on current and future production from the Avington Licences which were held by Heyco Energy Holdings, S.L. have also been assigned to Heyco International Inc.
Planning Permission Granted for Kirkleatham Gas Field Development
Egdon Resources plc (AIM:EDR), the UK-based exploration and production company focused on the hydrocarbon-producing basins of onshore UK and Europe, is pleased to report that it has received planning approval for the Kirkleatham gas field development in PEDL 068 in North Yorkshire where Egdon holds a 20% interest and is the Operator.On 13 August 2009, Redcar and Cleveland Borough Council granted planning consent for production from the existing Kirkleatham-4 well site, the construction of an underground pipeline to the Wilton site and for the drilling, testing and production for up to two additional wells at the site.Following a detailed review of the most likely schedule for regulatory consents, procurement and construction of the project, the joint venture partners have agreed to move the target completion of the project from late winter 2009/10 to autumn 2010. This will allow for construction during summer 2010 and ensure commissioning of the facilities will occur prior to the start of the 2010 winter gas season in October. This will ensure that maximum revenues are realised from the project whilst enabling a more efficient use of cash resources during the procurement and construction phase.Commenting on the project, Mark Abbott, Managing Director of Egdon, said:
“The award of planning consent for Kirkleatham is a key milestone and we are pleased the project had strong local support. We now have a clear schedule to ensure gas sales for the start of the winter 2010 gas market where it is anticipated that revenues from the project will be maximised. Work has already started on putting in place all the agreements, contracts and regulatory approvals to achieve this.”
Production Commences from Kirklington oil field
Egdon Resources plc (AIM:EDR), the UK-based exploration and production company primarily focused on the hydrocarbon-producing basins of onshore UK and Europe, is pleased to announce the commencement of production from its Kirklington oil field in PEDL203 located in Nottinghamshire.Following a period of commissioning and testing, the Kirklington-2 well was returned to continuous pumped production on 28 July 2009. As at 7 August 2009 the well had produced a total of 325 barrels of oil at an average daily rate of 32 bopd. Associated water production over the period was 640 barrels with an average water cut of 66%. This is in line with management’s expectations. The Kirklington-2 well has two oil producing intervals; the Sub-Alton Crawshaw and the Chatsworth Grit. The well is currently completed for production from the Chatsworth Grit.It is intended to continue producing the existing well until later in 2009 when a sidetrack will be drilled to an up-dip area of the Kirklington field to access additional oil reserves from both producing intervals. Planning approval is already in place for this operation.The Kirklington oil field was originally discovered by BP in 1986. Production from the Sub-Alton Crawshaw reservoir occurred between 1991 and 1998 and from the Chatsworth Grit reservoir from 2003 to 2004. Egdon acquired the current well-site from Star Energy in 2008.Commenting on the commencement of production, Mark Abbott, Managing Director of Egdon, said:
“The commencement of production from the Kirklington-2 well is the first stage in the re-juvenation of the Kirklington oil field. Having gained all authorisations and completed the upgrading of the facilities at the site we look forward to the next phase of development with the drilling of a sidetrack well to access additional reserves and increase daily oil rates and cash flow from the field. In the meantime we welcome the incremental production and revenues.“
Award of New Exploration Permit, Onshore France
Egdon Resources plc (AIM:EDR), the UK-based exploration and production company primarily focused on the hydrocarbon-producing basins of onshore UK and Europe, is pleased to announce the award of a new French exploration permit. The “Permis de Gex” (Gex Permit) was ratified on 28 May 2009 and published in the Official Journal on 11 June 2009.Egdon will operate the Gex Permit with a 40% interest through its wholly owned subsidiary Egdon Resources (New Ventures) Ltd. The other partners in the joint venture group are Eagle Energy Limited (40%) and Nautical Petroleum plc (20%). The Gex Permit covers an area of 932 square kilometres and has a five year initial term which commenced on 11 June 2009.The Gex Permit is located in the Jura/Molasse Basin of Eastern France adjacent to the Swiss border and the city of Geneva.The main exploration targets comprise oil in shallow Oligocene sandstones and gas in deeper Triassic reservoirs. The Triassic gas prospects have been identified based on a reinterpretation of the regional structure style, which indicates the presence of large basement involved anticlines with strong topographic expression. These structures are each mapped as having significant resource potential of over 1 trillion cubic feet of gas in place. The focus of exploration for the shallow Oligocene play are the surface anticlines developed within the permit area. The presence of oil seeps and oil in shallow boreholes demonstrates the presence of a working petroleum system for this play.The work programme will be phased, with the initial two years comprising geological and geophysical studies and gravity data acquisition followed by a second contingent phase of three years which would include the acquisition of new seismic data and the drilling of a well. The total financial commitment for the joint venture group over both phases will be €1.16 million.Commenting on the permit award, Mark Abbott, Managing Director of Egdon, said:
“The award of the Gex Permit represents further progress with the strategy we embarked on 18 months ago of growing Egdon’s French exploration position to further strengthen our medium-term exploration focus in a country with significant exploration potential, political stability and excellent fiscal terms. We are now able to progress the detailed evaluation of this high potential area which contains a mix of oil and gas prospects in a region which has been overlooked for a number of years. Of particular interest are the presence of large untested gas prospects in an area close to infrastructure able to feed into the European gas market “
Interim Results for the six months to 31 January 2009
Completion of acqusition of YCI Resources Limited
The Directors of Egdon Resources plc are pleased to announce that the company has completed the acquisition of YCI Resources Limited ("YCIR") from the Heyco Energy Group.As previously reported the consideration for the transaction is the issue to Heyco International, S.L. ("Heyco") of 6,861,434 Ordinary shares in Egdon. Application has been made for the consideration shares to be admitted to AIM and the shares are expected to be admitted on 18th March 2009.Following the admission of these shares Egdon Resources plc will have a total of 75,475,774 Ordinary Shares in Issue. Heyco will hold 9.1% of the enlarged share capital of Egdon.Egdon has also granted Heyco a Net Profit Interest ("NPI") on current and future production from licences PEDL069 and PEDL070. The NPI, which is related to oil price, will range between 5% and 10% of Egdon's net revenues realised from these licences after subtracting allowable costs.View or download full release
Holding in Company
The Company was notified on 6 March 2009 that, as a result of a disposal of ordinary shares in Egdon Resources ("Ordinary Shares") on 5 March 2009, Brewin Dolphin Limited holds 3,430,428 Ordinary Shares (with an equivalent amount of voting rights) which represents approximately 4.99 per cent. of the issued Ordinary Share voting capital of the Company.These shares are held indirectly as follows:Name of ShareholderNumber of ordinary sharesPercentage holdingBrewin Nominees Limited232,1000.338Giltspur Nominees Limited3,118,3284.65Brewin Dolphin Nominees a/c Charity10,0000.01
Holding in Company
The Company was notified on 27 February 2009 that, as a result of an acquisition of ordinary shares in Egdon Resources ("Ordinary Shares") on 26 February 2009, Brewin Dolphin Limited holds 3,449,678 Ordinary Shares (with an equivalent amount of voting rights) which represents approximately 5.03 per cent. of the issued Ordinary Share voting capital of the Company.These shares are held indirectly as follows:Name of ShareholderNumber of ordinary sharesPercentage holdingBrewin Nominees Limited251,3500.37Giltspur Nominees Limited3,118,3284.65Brewin Dolphin Nominees a/c Charity10,0000.01
Holding in Company
The Company was notified on 12 February 2009 that on 11 February 2009 Hargreave Hale Limited had sold a total of 500,000 ordinary shares in Egdon Resources ("Ordinary Shares"). Following the disposal Hargreave Hale Limited is interested in 12,740,500 Ordinary Shares representing 18.6 per cent. of the issued voting capital of the Company. 8,750,000 of these Ordinary Shares are held for unit trusts operated by Marlborough Fund Managers Ltd, for which Hargreave Hale manages the investments on a discretionary basis. The balance of the shares are held for discretionary clients of Hargreave Hale.
Egdon Resources plc (the "Company") was informed yesterday that Mr Walter Roberts, a Non-Executive Director, purchased on 11 February 2009, 100,000 shares at 9 pence in the name of his minor daughter.Mr Roberts' total beneficial shareholding in Egdon is now 1,191,750 ordinary shares, representing approximately 1.74% of the issued share capital of the Company.
Acqusition of YCI Resources Limited
The Directors of Egdon Resources plc are pleased to announce that the company has reached agreement to acquire the entire issued share capital of YCI Resources Limited (“YCIR”) from the Heyco Energy Group (“Heyco”).YCIR is a UK registered private company whose principal asset is a 16.667% interest in PEDL070, which contains the Avington oil field and is located in the Weald Basin of Southern England. YCIR also has a 33.334% interest in adjacent licence PEDL069 which Egdon maps as containing a possible northerly extension to the Avington field. This transaction will increase Egdon’s interests to 36.667% in PEDL070 and to 66.667% in PEDL069.The consideration for the transaction will be the issue to Heyco of 6,861,434 Ordinary shares in Egdon. In addition Egdon will grant Heyco a Net Profit Interest (“NPI”) on current and future production from the licences. The NPI, which is related to oil price, will range between 5% and 10% of Egdon’s net revenues realised from the licences after subtracting allowable costs.The acquisition is subject to review by the Secretary of State for Business Enterprise and Regulatory Reform following which the transaction will be completed and application will be made for the consideration shares to be admitted to AIM.The Avington oil field was discovered in 2003 with the drilling of the Avington-2 well which tested light oil from the Jurassic age Great Oolite reservoir. During 2007 the drilling and extended production testing of the Avington-3z well established the commerciality of the field with production of 63,000 barrels of oil during the six months test. During 2008 the operator, Star Energy, obtained the required planning and other consents to improve the surface facilities and restart production from the Avington-3z and Avington-2z wells. In addition consent was granted to drill two further appraisal wells on the accumulation. As previously reported by the Company, production commenced at Avington on 23 January 2009 at an initial free-flowing rate of around 300 barrels per day.Commenting on the proposed transaction, Mark Abbott, Managing Director of Egdon said;
“The acquisition of YCIR increases our interest in the Avington oil field to a more material level of 36.667% and will provide an important additional source of revenue and enable us to make further progress towards our near term production targets. We have worked closely with the management of Heyco over a number of years and look forward to their involvement as shareholders in the Company.”
George Yates, President of Heyco Energy Group commented;
“This transaction allows Heyco to gain exposure to the wide range of quality projects within Egdon's portfolio while retaining a financial interest in the Avington Field”
Holding in Company
The Company was notified on 3 February 2009 that on 2 February 2009 Hargreave Hale Limited acquired 100,000 ordinary shares in Egdon Resources ("Ordinary Shares"). Following the acquisition Hargreave Hale Limited are interested in 13,090,500 Ordinary Shares representing 19.08 per cent. of the issued shares capital. 9,300,000 of these shares are for unit trusts operated by Marlborough Fund Managers Ltd, for which Hargreave Hale manages the investments on a discretionary basis. The remaining balance is held on behalf of other discretionary clients.
Sale of Interest in Keddington Field
Egdon Resources plc (AIM:EDR) is pleased to announce completion of the sale of a 10% beneficial interest in Onshore UK Petroleum Exploration and Production Licence 005 (Remainder) (“PEDL005(Remainder)”) to Alba Resources Limited, a wholly owned subsidiary of Nautical Petroleum plc. PEDL005(Remainder) is located in the county of Lincolnshire and contains the producing Keddington oil field.The consideration paid to Egdon is £260,000 in cash with the transaction having an effective date of 31 December 2008. The licence assignment has been approved by the Department for Energy and Climate Change. Egdon will retain a 90% interest and operatorship of the licence.The Keddington oil field was discovered by Candecca Resources in 1998 and produces via two wells from Westphalian (Carboniferous) age sandstone reservoirs from a depth of around 2,180 metres. Egdon acquired the then shut-in field from Roc Oil GB Limited in March 2007 for £250,000. Production was restarted in June 2007 and production currently averages around 50 barrels of oil per day. To date, the field has produced a total of over 192,000 barrels of oil, which represents only a small percentage of the mapped oil in place, which Egdon estimates could total over 4 million barrels. The field has potential for additional drilling to increase the current production levels and total field recovery. Planning consent is already in place for an additional well and a decision on the timing and bottom hole location of this will be made during the first half of 2009 once reprocessing of the existing 3D seismic data has been completed and fully evaluated. In the meantime the previously free-flowing Keddington-2y well is currently being completed for pumped production which is anticipated to increase total field production. Egdon continues to evaluate options for utilising the associated gas production for electricity generation for both site use and for sale and will be progressing decisions in this area during the next few months.Commenting on the sale, Mark Abbott, Managing Director of Egdon said:
“This sale of a minority interest in Keddington provides a valuable addition to our near-term cash resources whilst setting a marker for the value of our remaining interest in the field. We remain encouraged by the upside at Keddington and look forward to working with the management of Nautical in developing further the production and revenue potential of the Keddington field and the other prospects within the licence.”
Steve Jenkins CEO of Nautical commented:
“This is small but significant step in the development of Nautical giving us access to our first production. We already have a good working relationship with Egdon in France and regard them as a very competent onshore operator."
Holding in Company
The Company was notified on 28 January 2009 that on 27 January 2009 Hargreave Hale Limited disposed of 400,000 ordinary shares in Egdon Resources (“Ordinary Shares”). Following the disposal Hargreave Hale Limited are interested in 12,990,500 Ordinary Shares representing 18.9 per cent. of the issued shares capital. 9,300,000 of these shares are for a unit trust operated by Marlborough Fund Managers Ltd, for which Hargreave Hale manages the investments on a discretionary basis. The remaining balance is held on behalf of other discretionary clients.
Production Starts at the Avington Oil Field
Egdon Resources plc (AIM:EDR) , the UK-based exploration and production company primarily focused on the hydrocarbon-producing basins of onshore UK and Europe, is pleased to announce that it has been advised by Star Energy Group Plc that the Avington Field, came into production on the 23rd January 2009 and is flowing at approximately 300 barrels of oil per day. The decision to switch to jet pump assisted lifting to increase output will be made after a suitable period of production.The Partners in Licence PEDL 070 containing the Avington Oil Field are:Star Energy Oil UK Ltd (Operator)50%Egdon Resources plc20%YCI Resources Ltd16.667%Sterling Resources UK Ltd8.333%Northern Petroleum GB Ltd5%