East Humber Basin Update - Keddington, Keddington South and Louth

Egdon Resources plc (AIM:EDR, “Egdon” or “the Operator”) notes the announcement made this morning by Union Jack Oil plc (“UJO” or “the Company”) on their acquisition of an additional 35% interest in the producing Keddington Oilfield PEDL005(R) and a 15% Interest in PEDL339 from Terrain Energy Limited. (“Terrain”).Egdon holds a 45% interest in PEDL005(R) and a 65% interest in PEDL339 and is the operator of both licenses.The UJO release refers to technical work undertaken by Egdon on PEDL005(R) and PEDL339 and included the following statements by UJO which are of relevance to Egdon’s shareholders:“Keddington, currently producing approximately 28 barrels of high-quality oil per day from Carboniferous age sandstone reservoirs, is located along the highly prospective East Barkwith Ridge, an east-west structural high on the southern margin of the Humber Basin.A detailed, in-depth subsurface review of the Keddington field and the surrounding licence area was conducted by Egdon during 2019, resulting in a fully audited and consistent data set that supports updated resource estimates generated by the Operator.These geological and geophysical studies indicate that potentially significant resources remain unswept at Keddington, highlighting an excellent opportunity to increase production volumes multi-fold by the drilling of a relatively inexpensive development well from the existing production site.  The gross remaining Mean Contingent Resource at Keddington is 567,000 bbls of oil ”Egdon “is finalising the assessment of potential in-fill drilling locations at Keddington with a view to targeting a side-track drilling location.The Keddington site lease has been extended until 2029.  Current planning consent expires in 2058, with approval in place for the drilling of a further two wells.In addition to the unswept resources in Keddington, a near-field exploration opportunity exists at Keddington South, which has a gross Mean Prospective Resource Volume of 635,000 bbls of oil.As part of this acquisition, the Company is also acquiring a 15% interest in PEDL339 into which the Louth Prospect, with a gross Mean Prospective Resource of 600,000 bbls of oil, extends from PEDL005(R). Significant additional Prospective Resources, both for oil and gas also exist over the licence areas and includes the North Somercotes Prospect”.Commenting on the updated work reported in the UJO release, Mark Abbott, Managing Director of Egdon Resources plc, said:“We are encouraged by the results of the subsurface review of our eastern Humber Basin licences which has identified a new low-risk near-field exploration opportunity at Keddington South, additional resources in our producing Keddington oil field and confirmed low risk resources at Louth.  We believe these opportunities can be targeted by drilling from the current Keddington location and present a number of low-risk/low-cost drilling opportunities for Egdon.We welcome UJO’s increased participation in the licences and continued technical contribution and thank Terrain for their active involvement  to date.”

March 9, 2020

P1929 and P2304 Farm-In Agreement with Shell U.K. Limited

Further to our announcement of 20 January 2020, Egdon Resources plc (AIM:EDR) is pleased to announce the signature of a Farm-In Agreement with Shell U.K. Limited (“Shell”) in relation to UK offshore licences P1929 and P2304 (“the Licences”) which contain the Resolution and Endeavour gas discoveries respectively.Egdon subsidiary, Egdon Resources U.K. Limited (‘ERUK’) currently holds a 100% interest in both licences.Under the terms of the farm-in agreement;

  • Shell will acquire a 70% working interest in Licences P1929 and P2304, and be appointed as the licence operator
  • ERUK will retain a 30% non-operated interest in the Licences
  • As consideration, Shell will pay 85% of the costs of the acquisition and processing of a 3D seismic survey covering both the Resolution and Endeavour gas discoveries with the carry on the acquisition costs capped at US$5 million gross, beyond which it would pay 70% of the costs ; and
  • Shell will also pay 100% of all studies and manpower costs up to a well investment decision on the Licences

The farm-in is conditional upon;

  • 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 subject to securing a farm-in agreement by 31 January 2020 (which this agreement fulfils) and to demonstrating by the 31 March 2020, that the Licensees are on track to deliver a future programme of 3D seismic data acquisition across both Licences (which is in progress). Egdon and Shell will now engage with the OGA to agree the nature and timing of the forward work programme which will enable further licence extensions to be granted to accommodate this.A Competent Person’s Report prepared by Schlumberger Oilfield UK PLC (April 2019) reported Mean Contingent Gas Resources of 231 billion cubic feet of gas (“bcf”), with a P90 to P10 range of 100 to 389 bcf, attributable to the Resolution gas discovery (P1929). The Resolution discovery was made by Total in 1966 when well 41/18-2 flow tested gas from the Permian aged Zechstein carbonate (limestone) reservoir. Additionally, Egdon estimates that the Endeavour gas discovery (P2304) contains Mean Contingent Resources of 18 bcf, with a P90 to P10 range of 10 to 28 bcf.Commenting on Shell’s farm-in to these licences, Mark Abbott, Managing Director of Egdon Resources plc, said:“We are delighted to have signed a farm-in agreement with Shell in respect of these highly prospective licences.  This transaction validates our views on the potential of these blocks and introduces a highly experienced and respected operator to progress appraisal activity on the Resolution and Endeavour gas discoveries.  In difficult market conditions Egdon has secured a substantial carry on costs to the well investment decision whilst retaining a material 30% interest in the licences.  Our immediate focus will be to work with Shell to agree a forward work programme and timeline for the licences with the OGA.  The first part of this work programme will be the acquisition of a marine 3D seismic survey to enable a decision on the contingent appraisal well.  We look forward to working with Shell and benefitting from their substantial worldwide operational experience and expertise, including in the development of carbonate reservoirs of this type.”

January 21, 2020

H1 2020 Production Update and Notice of Interim Results

Egdon Resources plc (AIM:EDR) is pleased to provide an update on production for the first half of the Company’s 2019-2020 financial year (“H1 2020” or “the Period”) which ended on 31 January 2020.Production during the Period was 32,758 barrels of oil equivalent (“boe”), at an average of 178 boe per day (“boepd”) (H1 2019: 30,026 boe, 164 boepd). This is in line with previous guidance for H1 of 170-180 b/d. The previously stated guidance of 130-140 boepd for the full year remains valid. Production was attained from the Ceres gas field and the Keddington and Fiskerton Airfield oil fields.The Company’s interim results for H1 2020 are scheduled to be announced on 21 April 2020.Commenting on the update, Mark Abbott, Managing Director of Egdon Resources plc, said:“2020 has started positively for Egdon, with continued strong production across our portfolio, a positive outcome to the Wressle planning inquiry and the announcement of a farm-in by Shell U.K. Limited into our offshore Resolution and Endeavour projects.Our current focus is on the Wressle field development, where we are working to discharge the planning conditions ahead of commencing site works. We will provide shareholders with a detailed update on Wressle and the Biscathorpe project following Joint Venture meetings in the coming weeks.”

February 26, 2020

Grant of Licence Extensions: P1929 and P2304

Egdon Resources plc (AIM:EDR) is pleased to advise that the Oil and Gas Authority (“OGA”) has granted licence extensions to UK offshore licences P1929 and P2304. Egdon’s subsidiary, Egdon Resources U.K. Limited (‘ERUK’), is the operator and currently holds a 100% interest in both licences.The OGA has granted a six month extension to both P1929 and P2304 (“The Licences”) to 31 May 2020 with obligations as follows:

  1. By 31 January 2020, demonstrate to the OGA’s satisfaction that a farm-in agreement has been fully executed which provides for funding of the licence work programme; and
  2. By 31 March 2020, demonstrate to the OGA’s satisfaction that the Licensee is on track to deliver a future programme of 3D seismic data acquisition across both Licences.

We anticipate further engagement with the OGA during the period of the licence extension to agree the nature and timing of the forward work programme and to reach agreement on the duration of a further licence extension to accommodate these activities.P1929 contains the Resolution gas discovery where a Competent Persons Report by Schlumberger Oilfield UK PLC (April 2019) reported estimates of mean Contingent Gas Resources of 231 billion cubic feet of gas (“bcf”) with a P90 to P10 range of 100 to 389 bcf, attributable to the Zechstein reservoir in the 1966 gas discovery made by Total in well 41/18-2. P2304 contains an extension of the Resolution discovery and the Endeavour gas discovery which Egdon estimates contains mean Contingent Resources of 18 bcf, with a P90 to P10 range of 10 to 28 bcf.Today’s news follows from our announcement of 4 November 2019, advising that ERUK had signed an exclusivity agreement (the “Agreement”) in respect of Licence P1929 and P2304 with a large internationally recognised exploration and production company (the “Counterparty”).Despite entry into the Agreement, no assurance can be provided that a commercial transaction will ultimately be concluded with the Counterparty. The Company will provide further updates in respect of these matters in due course.Commenting, Mark Abbott, Managing Director of Egdon Resources plc, said:“We are pleased to have secured extensions from the OGA for both P1929 and P2304 which contain the Resolution and Endeavour gas discoveries, key conventional projects for Egdon.  This follows on from our recent announcement of securing an Exclusivity Agreement with a large internationally recognised exploration and production company as our preferred partner for Resolution and Endeavour. Today’s news represents further positive progress for these projects and results from the proactive and constructive engagement  between Egdon, the Counterparty and the OGA.  Having secured the licence extensions, our focus now turns to finalising a farmout agreement and we look forward to updating shareholders on progress in this regard in the New Year.”

November 27, 2019

P1929 and P2304 Extension to term of Exclusivity Agreement

The Company is pleased to provide an update to the announcement of 4 November 2019, regarding the exclusivity agreement (the “Agreement”) in respect of Licences P1929 and P2304 (the “Licences”) with a large internationally recognised exploration and production company (the “Counterparty”). Egdon Resources U.K. Limited and the Counterparty have agreed to a short extension to the deadline (from 19 January 2020) for execution of a definitive “farm-out” agreement under the terms of the Agreement.The short extension will run until 23 January 2020 to provide time for the completion of the farm-in documentation.Until the definitive agreement is signed, no assurance can be given that a commercial transaction will ultimately be concluded with the Counterparty.Mark Abbott, Managing Director of Egdon Resources plc, said:“Having secured extensions to the Licences during November 2019, we have made excellent progress in respect of agreeing the terms and preparing the documentation for a potential farm-in by the Counterparty.”

January 20, 2020

Wressle Development Granted Planning Consent on Appeal

Egdon Resources plc (AIM:EDR) is pleased to report that the Planning Inspectorate has today upheld our appeal and granted planning consent for the development of the Wressle Oil Field in North Lincolnshire licences PEDL180 and PEDL182.The Inspector also allowed the application for an award of costs against North Lincolnshire Council.Mark Abbott Managing Director of Egdon Resources plc, said:“I am delighted that the Planning Inspectorate has made this positive determination in relation to this important asset for Egdon and our JV partners. We will now begin work on discharging the planning conditions and the detailed planning for the development works.We will continue to keep shareholders and the local community informed.”Wressle project page

January 17, 2020

Results of Annual General Meeting

The Directors of Egdon Resources plc are pleased to announce that at the Annual General Meeting held at the offices of Norton Rose Fulbright on 19 December 2019, all resolutions put before shareholders at the meeting were duly passedView or Download Voting Results and Proxy AppointmentsAt the meeting, Managing Director Mark Abbott presented a review of the business. The presentation will be available and can be accessed from the Company's website: www.egdon-resources.com.

December 20, 2019

Wressle Development Public Inquiry Concluded

Egdon Resources plc (AIM:EDR) is pleased to provide an update on the Wressle Development Public Inquiry.The Wressle Development Public Inquiry concluded yesterday, having commenced on 5 November 2019 in Scunthorpe, Lincolnshire. The inquiry lasted just three days, including a site visit, instead of the planned six days. As previously announced North Lincolnshire Council presented no evidence against the appeal. An application for costs has also been submitted.With a general election underway and resultant Planning Inspectorate purdah we expect a verdict on our appeal after 12 December 2019 but probably before the end of the year.Commenting, Mark Abbott, Managing Director of Egdon Resources plc, said:“We presented a very strong case, supported by detailed evidence and agree with the conclusions of the Council’s own professional planning officer. This was reinforced by an expert third party review undertaken on behalf of the Council, who recommended our revised application for approval ahead of the November 2018 decision.”

November 8, 2019

Results for the year ended 31 July 2019

Egdon Resources plc (AIM: EDR), a UK-based exploration and production company primarily focused on the hydrocarbon-producing basins of onshore UK, today announces its audited Results for the year ended 31 July 2019 (“the Period”).View or Download Results for the year ended 31 July 2019View or Download Annual Report 2019View or Download Form of Proxy 2019

November 19, 2019

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