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Egdon Resources plc (AIM:EDR) notes the press release made today by UK Oil & Gas PLC (“UKOG”) the operator of PEDL143, where Egdon held a 18.4% interest.In its release UKOG advised the following in respect of PEDL143;“A detailed study examining the viability of drilling the A24 (formerly Holmwood) Portland prospect’s centre from selected sites outside the Surrey Hills Area of Outstanding Natural Beauty, each over 3 km from the target, concludes that the required long-reach/shallow target-depth wells are neither technically viable nor economically feasible. Consequently, UKOG and its partners have now relinquished their interests in the licence.”Mark Abbott, Managing Director of Egdon Resources plc, said:“The relinquishment is supported by Egdon, as a technically and commercially viable site to drill the A24 Prospect (formerly Holmwood) couldn’t be identified.  It enables Egdon to focus its resources on the core near-term priorities; namely, moving to production at Wressle during this quarter, progressing drilling options at Biscathorpe and North Kelsey, and acquiring a marine 3D seismic survey over the Resolution and Endeavour gas discoveries during the coming period.”

Egdon Resources plc (AIM:EDR) is pleased to announce an agreement with Union Jack Oil plc ( “Union Jack”) to align our equity interests in PEDL241, and to jointly pursue a farmout for the drilling of the North Kelsey-1 exploration well.The North Kelsey Prospect is a drill ready conventional oil prospect along trend from and analogous to the Wressle oil development - which lies some 15 km to the northwest - and has been mapped from 3-Dimensional seismic data to have potential for oil in up to four stacked conventional Carboniferous reservoir targets. Egdon estimates that the Prospective Resources range from 4.66 million barrels up to 8.47 million barrels, with a Mean Resource volume of 6.47 million barrels.In September we announced an extension of the existing planning consent for drilling North Kelsey-1 to 31 December 2021. We have also received the requisite permits from the Environment Agency.Under the terms of the agreement Union Jack will acquire a further 30% interest in the license for a cash consideration of £100,000 with the previous farm-in obligations terminating. Egdon will retain operatorship and a 50% interest in the licence. The transaction is subject to consent from the Oil and Gas Authority.Upon completion of the acquisition the interests held in PEDL241 will be as follows:CompanyPrevious InterestNew InterestEgdon Resources U.K. Limited80% (Operator)50% (Operator)Union Jack Oil plc20%50%Commenting on the agreement, Mark Abbott, Managing Director of Egdon Resources plc, said:“We are pleased to have reached agreement with Union Jack to fully align our interests and objectives in PEDL241 prior to a planned joint farmout of the drill ready North Kelsey-1 exploration well. All consents are in place to drill at North Kelsey, a Wressle analogue, providing a further potentially material value catalyst for Egdon during 2021.”

Egdon Resources plc (AIM:EDR) advises that its application to extend to 31 December 2021, the existing planning permission to drill conventional exploratory oil well at North Kelsey-1 site location was approved at today’s meeting of the Lincolnshire County Council Planning Committee.Commenting on the decision, Mark Abbott, Managing Director of Egdon Resources plc, said:“We are pleased with today’s decision to extend the planning permission as it enables us to progress our drilling plans at the North Kelsey conventional oil prospect which have been delayed by COVID-19 restrictions.  We will now progress our plans for drilling during 2021, providing a further potentially material near-term value catalyst for Egdon”

Egdon Resources plc (AIM: EDR, “Egdon”) is pleased to advise that the proceeds from the confidential settlement agreement between Egdon Resources U.K. Limited (acting on behalf of the PEDL253 joint venture partners) and Humber Oil & Gas Limited as announced on 24 June 2020 have been received.The joint parties to PEDL253 have therefore resolved the dispute arising under the JOA and look forward to co-operating in the future in the development of the licence.

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.”

Egdon Resources plc (AIM: EDR, “Egdon”) is pleased to provide an update on the Wressle Oil Field Development (“Wressle”) where site works have now commenced. Wressle is located in North Lincolnshire Licences PEDL180 and PEDL182 where the Company holds a 30% operated interest.The site civils contractor has mobilised and the works to reconfigure the Wressle production site have commenced. These works, which represent an important step in the development, will comprise the installation of a new High Density Polyethelene (HDPE) impermeable membrane; French drain system; an approved surface water interceptor; the construction of a purpose-built bund area for storage tanks; a tanker loading plinth and an internal roadway system.The Company remains on track for first oil during H2 2020 as previously advised.The Wressle development comprises a number of key stages which are summarised below along with progress made to date:

• Discharging the planning conditions, finalising detailed designs, tendering and procurement of materials, equipment and services and finalising all HSE documentation and procedures; the key planning conditions have been discharged, progress with detailed design tendering and procurement is proceeding as per the plan and all HSE documentation and procedures are progressing as per expectation
• Installation of groundwater monitoring boreholes and establishing baseline groundwater quality through monitoring and analysis; four groundwater monitoring boreholes have been installed and two rounds of sampling and analysis undertaken to date
• Reconfiguration of the site; site works have commenced
• Installation and commissioning of surface facilities;
• Sub-surface operations; and
• Commencement of production

Commenting, Mark Abbott, Managing Director of Egdon Resources plc, said:“We continue to make good progress with the Wressle development,  in line with the expected timeline, despite the challenges of the current operating environment. The commencement of the site reconfiguration works represents an important step in the progress to first oil which will increase Egdon’s production by 150 barrels of oil per day. Wressle is economically robust with an estimated project break-even oil price of $17.62 per barrel.We maintain our guidance of first oil during H2 2020 and will continue to update stakeholders as works progress.”

The Company is pleased to announce the appointment of WH Ireland Limited as Egdon’s Nominated Adviser (“Nomad”) and joint broker.

Egdon Resources plc (AIM: EDR, “Egdon”) is pleased to advise the signing of a legally binding and confidential settlement agreement (the “Settlement Agreement”) between Egdon Resources U.K. Limited (acting on behalf of the PEDL253 joint venture partners) and Humber Oil & Gas Limited (“Humber”). The joint parties to PEDL253 have therefore resolved the dispute arising under the JOA and look forward to co-operating in the future in the development of the licence.Upon implementation of the terms of the Settlement Agreement Egdon Resources U.K. Limited will hold a 35.8% operated interest in PEDL253.Egdon has previously announced the results of a detailed evaluation of the Biscathorpe project which concluded that a possible material and commercially viable hydrocarbon resource remains to be tested. In summary;

• Economic modelling indicates a financially robust project even in the current oil price environment
• The principal Westphalian target has an estimated un-risked gross NPV(10) of £55.6 million
• Break-even full-cycle economics estimated to be (NPV(10)) US$18.07 per barrel of oil
• A 57 metre oil bearing section in the Dinantian Carbonate of Biscathrope-2 represents a secondary target with potentially significant commercial upside
• Future identified drill targets are accessible via a side-track of the suspended Biscathorpe-2 well.

Mark Abbott, Managing Director of Egdon Resources plc, commented: “We are pleased that agreement has been reached with Humber, enabling the project to now move forward with full support from all partners.Having retained the wellsite, the JV has maintained its optionality to pursue a cost effective side-track to test the resource potential of not only the Basal Westphalian Sandstone play, but also to appraise the oil column demonstrated in the deeper Dinantian Carbonate reservoir. Our detailed work has concluded that a potentially material and commercially viable hydrocarbon resource remains to be tested at Biscathorpe.We look forward to providing further updates to shareholders as the Biscathorpe project develops.”

Egdon Resources plc (AIM:EDR) is pleased to provide an update on UK offshore licences P1929 and P2304 (“the Licences”) and the Farm-In Agreement with Shell U.K. Limited (“Shell”).As advised on 21 January 2020, the farm-in by Shell was conditional upon;

• Receiving approval from the Oil & Gas Authority (“OGA”); and
• Agreement of a mutually acceptable forward work programme and timeline with the OGA

In December 2019 Egdon announced that the OGA had granted extensions to the Licences to 31 May 2020. I am pleased to report that the OGA has now agreed to extend further the licence terms and amend the work obligations for both P1929 and P2304 as follows:P1929 and P2304The initial term of the Licences shall be extended to 31 May 2024; subject to fulfilling the following firm commitments;

1. by 31 May 2021, acquire 400 km² of 3D seismic in P1929 and P2304 or relinquish the Licences
2. by 30 November 2022, undertake to drill one well in either P1929 or P2304 to a depth of 1700 metres True Vertical Depth Subsea (TVDss), or 75 metres below the Base Permian Unconformity; or relinquish the Licences

We will now progress the assignment of the licence interests and operatorship of the Licences to Shell. On completion Egdon will retain 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. 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 update, Mark Abbott, Managing Director of Egdon Resources plc, said:“Working closely with our partner Shell, we are pleased to have reached agreement with the OGA to extend the Licences coupled with revised work obligations and timelines. We will now   focus on completing the licence assignments and transfer of operatorship to Shell and progressing the planned appraisal activity on the Resolution and Endeavour gas discoveries.  The first part of this work programme will be the acquisition of a marine 3D seismic survey.  We look forward to building on our close working relationship with Shell and benefitting from their substantial worldwide operational experience and expertise; notably the development of carbonate reservoirs characteristic of the Resolution and Endeavour discoveries.”