Holmwood Update

Egdon Resources plc (AIM:EDR), notes the following announcement made today by Europa Oil and Gas (Holdings) plc on behalf of the operator of the Holmwood Licence PEDL143, of which Egdon holds 18.4% interest:“Europa Oil & Gas (Holdings) plc, the UK and Ireland focused oil and gas exploration, development and production company, announces that it has been notified by the Head of Estates at the Forestry Commission that the Minister for the Environment, Food and Rural Affairs, has decided not to renew the lease at Bury Hill Wood, Coldharbour Lane, Surrey. Bury Hill Wood is the proposed site for a temporary exploration well to test the conventional Holmwood prospect on licence PEDL 143 in the Weald Basin, Surrey. The lease expires on 12th September 2018.Following the Minister’s decision, the Company, on behalf of its partners, will be withdrawing its planning application to drill the Holmwood prospect from the Bury Hill Wood site.PEDL 143 has recently been extended until 30th September 2020, and in addition to the established Portland sandstone reservoir, contains the Kimmeridge Limestone which, following success at the nearby Horse Hill discovery, is an emerging play in the Weald Basin. The Company, with its partners, intends to undertake a full evaluation of alternative sites from which to target the Holmwood prospect, and other plays in the licence.”Commenting on the announcement Mark Abbott, Managing Director of Egdon said: “The Minister’s decision is highly frustrating. However, we note the commitment of the operator to evaluate alternative sites and we will work with Europa and the joint venture partners to agree a forward plan for the licence.  Meanwhile we will continue to progress our plans across our broad and extensive portfolio of UK projects.”

September 4, 2018

TR-1

October 2, 2018

Wressle Existing Planning Consent Extension Refused

Egdon Resources plc (AIM:EDR) advises that its application to extend planning consent for the Wressle site to 1 August 2019 was refused at today’s meeting of the North Lincolnshire Council Planning Committee (“the Committee”). The application had been recommended for approval by North Lincolnshire County Council’s planning officers.Mark Abbott, Managing Director of Egdon Resources plc, said:“The decision of the Committee is clearly disappointing given that the application had been recommended for approval by North Lincolnshire Council’s own professional planning officers, that an appeal for a previous refusal of such an application had been successful and that we have recently submitted a new application for the development of the Wressle oil field which we strongly believe comprehensively addresses the reasons for the refusal of the original planning applications and the subsequent appeals. We intend to appeal this decision without delay and will begin preparing documentation on receipt of the Committee’s decision notice.”

August 1, 2018

Submission of New Planning Application for Wressle Development

Egdon Resources plc (AIM:EDR) is pleased to announce the submission to North Lincolnshire Council (NLC) of a new planning application (the Application) for the development of the Wressle oil field, which the Company believes comprehensively addresses the reasons for the refusal of the original planning applications and the subsequent appeals.

The Application is supported by a detailed planning and sustainability statement, a suite of technical drawings showing construction and layout details and updated and new technical assessments.

The Company believes that the Application takes full account of the key findings of the Planning Inspector's decision to dismiss the Company's appeals as set out in his decision letter of 4 January 2018, which identified three key issues in his decision; the absence of a ground conditions survey report; the absence of sufficient evidence on the adequacy of the Geosynthetic Clay Liner (GCL) covering; and uncertainty with regards to the near surface geology and specifically the presence of capping layers to the underlying aquifers.

The first issue has been addressed by the production of an independent Ground Investigation Report which evaluates and confirms the underlying ground condition at the wellsite using information gained from geotechnical site investigation boreholes drilled in Q1 2018.

The second issue has been addressed through the proposed reconfiguration of the wellsite to install a new high-density polyethylene (HDPE) impermeable membrane above the existing GCL, with additional associated protection layers across the entire wellsite. The specification of the HDPE impermeable membrane, associated protection layers and thickness and suitability of the stone covering layer, has been informed by the Ground Investigation Report, tested and validated in a laboratory, and agreed between the membrane manufacturer and Egdon's consulting civil and structural engineers.

The third issue has been addressed through an updated independent Hydrogeological and Flood Risk Assessment (HRA), which includes the results of samples tested from two deeper cored boreholes drilled in Q1 2018. The HRA confirms the detail of the near surface geology and conclusively demonstrates the presence of laterally continuous capping layers to the underlying aquifers.

Further detail of the Application can be found in the notes to editors below.

Once validated by North Lincolnshire Council, the Application will be reviewed by the Planning Officers at NLC, considered by statutory consultees and will be open for comment from interested parties.  The period of consultation should be 13 weeks for an application of this nature.

Mark Abbott, Managing Director of Egdon Resources plc, said:

"The submission of this new planning application is the culmination of a significant amount of detailed and thorough work by our team of specialist consultants and advisers. The new proposed development has been informed by information from the site investigation and deeper cored boreholes drilled during the first quarter of 2018 and has been designed to comprehensively address the key concerns which resulted in the Inspector's dismissal of our planning appeals. 

The proposed development incorporates high levels of embedded mitigation, such as the new HDPE impermeable membrane system, to minimise the potential for any environmental or other impacts from our operations.  The effectiveness of this mitigation will be verified by continuous monitoring of the nearby water and groundwater.

We plan to set up a community liaison group and a community fund to ensure the local community are kept fully informed and share in the benefits of the Wressle development.

We hope that North Lincolnshire Council will recognise the positive changes made to the proposed development when determining this planning application and we remain available to address any remaining questions or concerns which may arise during the consultation and determination process."   

Notes to Editors:

The Wressle-1 Oil Field:

The Wressle-1 well was drilled in 2014 and tested in 2015. The Wressle-1 well has flowed oil and gas from three separate reservoirs, the Ashover Grit, the Wingfield Flags and the Penistone Flags.  This totalled 710 barrels of oil equivalent per day from all zones.  In September 2016, a Competent Person's Report made independent estimates of Reserves and Contingent and Prospective oil and gas Resources for the Wressle discovery of 2.15 million stock tank barrels classified as discovered (2P+2C).  Further information can be found at our Wressle Oil and Gas Discovery page https://www.egdon-resources.com/home/project-sites/wressle/ 

The New Planning Application:

The new planning application (the Application) seeks permission for the Proposed Development, which comprises:

"Retention of the Wressle-1 Wellsite and access track for the Production of Hydrocarbons, together with an extension of the site by 0.12ha for the installation of additional security facilities; site reconfiguration to facilitate the installation of a new impermeable membrane, French drain and surface water interceptor; construction of a bund, tanker loader plinth and internal roadway system; installation of up to 2 additional groundwater monitoring boreholes and deepening of 3 existing groundwater monitoring boreholes; well operations; installation of production facilities and equipment; installation of gas engine and electrical grid connection; oil and gas production for a temporary period of 15 years; and restoration to arable land at Lodge Farm, Clapp Gate, Appleby, Scunthorpe."

The planning application is accompanied by the following documents:

·       Planning and Sustainability Statement;

·       Planning Application Form;

·       Oil and Gas Checklist;

·       Site Plans and Design Drawings;

·       Technical Assessments comprising:

·      Air Quality Assessment;

·      Archaeology and Heritage Impact Assessment;

·      Civil and Structural Design Statement;

·      Ecological Appraisal;

·      Hydrogeological and Flood Risk Assessment;

·      Landscape and Visual Appraisal;

·      Lighting Assessment;

·      Assessment of Environmental Noise Emissions; and

·      Transport Statement.

 

Whilst the Inspector supported Egdon's position on many aspects of the previous applications the Inspector identified the following as key issues in his decision to dismiss the Company's appeals as set out in his decision letter of 4 January 2018:

a.             The absence of a ground conditions survey report;

b.             The absence of sufficient evidence on the adequacy of the Geosynthetic Clay Liner (GCL) covering; and

c.             Uncertainty with regards to the near surface geology and specifically the presence of capping layers to the underlying aquifers.

Egdon believes that these issues have been fully addressed in the Application as summarised in the RNS and as detailed further below.

·      A number of geotechnical site investigation boreholes and two deeper cored boreholes were drilled on the Wressle-1 wellsite during Q1 2018. 

·      The nature of the underlying ground condition at the wellsite has been assessed and an independent Ground Investigation Report prepared which details the existing ground conditions at the wellsite, confirming the Company's view of the suitability of the site and satisfying the first of the Inspectors key reasons for dismissal of the appeals.

·      This Ground Investigation Report has been utilised by an independent firm of consulting civil and structural engineers, to prepare a Civil and Structural Design Statement. This document details the design criteria, guidance and regulations applicable to the redesign and reconfiguration of the wellsite as proposed in the Application.

·      The proposed wellsite reconfiguration will result in the installation of a new high-density polyethylene (HDPE) impermeable membrane and additional associated protection layers across the entire wellsite. As part of this, the existing site surface aggregate will be stripped and regraded, before being re-laid on top of the new HDPE impermeable membrane system.

·      The installation specification of the HDPE impermeable membrane, associated protection layers and thickness and suitability of the stone covering layer, has been tested and validated in a laboratory against the maximum expected site loading, and agreed between the manufacturer and Egdon's consulting civil and structural engineers to ensure the HDPE impermeable membrane is protected throughout the life of the wellsite.

·      Although on inspection it was found to be in effective condition, the existing GCL membrane will remain in place but will no longer be relied upon as tertiary containment, as it is being overlaid with the new HDPE impermeable membrane system.

·      A Construction Quality Assurance plan will be used to ensure the installation of the lining system is robust and constructed to the highest engineering standards.

·      A poured reinforced concrete internal roadway will be constructed to provide even greater weight distribution and protection above the HDPE impermeable membrane in the most heavily trafficked area of the site.

·      The installation of a new HDPE impermeable membrane, which has been informed by the ground investigation report and designed and tested by Egdon's consulting civil and structural engineers, in consultation with, and in agreement with the manufacturer, along with other measures as detailed; comprehensively addresses the Inspectors concerns in relation to point b above.

·      In relation to point c., Egdon commissioned an independent Hydrogeological and Flood Risk Assessment (HRA) to address the uncertainty identified by the Inspector with regard to the near surface geology and specifically the presence of capping layers to the underlying aquifers.

·      The HRA defines a hydrogeological conceptual model (HCM) which has utilized regional, local and wellsite specific data, including the drilling of site investigation boreholes and laboratory testing for hydraulic conductivity of core samples from the two deeper cored boreholes drilled in Q1 2018.

·      These cores and tests provide conclusive evidence that demonstrates the existence of a laterally continuous impermeable claystone capping layer above the primary aquifer in the Lincolnshire Limestone Formation beneath the wellsite and more widely.

·      The HCM also demonstrates the presence of a capping layer to the Cornbrash secondary aquifer beneath the wellsite.

·      The HRA concludes that the assessed risks relating to all possible hazards associated with the proposed development, range from 'Low' to 'None'. The overall risk profile for the proposed development is a reflection of the high level of embedded mitigation within the design of the wellsite reconfiguration (as detailed above) and the construction of the existing Wressle-1 well.

·      The HRA confirms the detail of the near surface geology and hydrogeology, supporting the previously presented hydrogeological model and conclusively demonstrating the presence of a capping layer to the underlying aquifers. This together with the conclusions of the risk assessment, in the Company's view, fully addresses the final issue identified by the Inspector.

·      It is also proposed to install up to two new groundwater monitoring boreholes and to deepen three of the existing groundwater monitoring boreholes to verify the effectiveness of the embedded site environmental protection through ongoing monitoring.

Planning history:

On 11 January 2017, North Lincolnshire Council refused planning consent for the original application for the development of the Wressle Oil Field at Lodge Farm, Wressle, North Lincolnshire.

 

On 7 February 2017, Egdon announced that it would both appeal the decision of 11 January 2017 and in parallel submit a new Planning Application for the Wressle development which would include even more detailed information to address the specific concerns outlined by North Lincolnshire Council in their refusal.

 

On 11 April 2017, Egdon submitted an appeal against North Lincolnshire Council's decision to refuse planning consent.

 

On 28 April 2017, Egdon submitted a new application for the Wressle Development including additional detailed information to address the specific concerns raised by North Lincolnshire Council in its 11 January 2017 decision to refuse the original application for the development of the Wressle Oil Field.

 

On 19 May 2017, Egdon announced the issue by the Environment Agency of the variation to the Mining Waste Permit for the planned Wressle field development and associated operations.

 

On 3 July 2017, the new planning application was also refused.  The variation of the existing planning for the site requesting a twelve month extension was also refused at the same meeting.

 

During November 2017, a planning inquiry was held to consider the two appeals for development approval and the appeal of the variation of the existing planning for the site.  On 5 January 2018, we announced that the Inspector had rejected the appeals by Egdon against the two planning refusals by North Lincolnshire County Council's Planning Committee.  However, the Planning Inspectorate did uphold Egdon's appeal against the decision to refuse the application to retain the existing planning for the well site, which is was retained until the 28 April 2018.

 

A new application to extend the current planning consent was submitted on 13 April 2018 and is awaiting determination.

 

July 5, 2018

Holmwood Update

Egdon Resources plc (AIM:EDR) notes the following announcement made today by Europa Oil and Gas (Holdings) plc the operator of the Holmwood Licence PEDL143:

“Europa Oil & Gas (Holdings) plc, the UK and Ireland focused exploration, development and production company, is pleased to provide a planning update regarding the Holmwood conventional oil exploration prospect in the Weald Basin (‘Holmwood’) on Licence PEDL 143 at Bury Hill Wood, Coldharbour Lane, Surrey.   Europa Oil & Gas Limited is operator of PEDL 143 in which it holds a 20% interest.

Europa will today submit a planning application to Surrey County Council seeking a Variation of conditions 3 and 19 (i) of Appeal Decision APP/YB3600/A/11/2166561, to extend the temporary period of the permission for the well site by a further 3 years and to remove the requirement for the scheme to include an identified HGV holding area. It has also applied today for two other associated planning applications – for the underground drilling corridor and for the temporary security fence, which is to be erected around the well site.

Europa also confirms that the Oil and Gas Authority has extended the Initial Term of Licence for PEDL 143 until 30 September 2020.

The Environment Agency granted a mining waste permit number EPR/YP3735YK on 23 July 2018. The permit authorises the management of extractive wastes not involving a waste facility to allow the drilling and testing of a single well for the purposes of onshore oil and gas exploration. The Environment Agency has also granted a radioactive substances regulation permit and an oil storage permit (both Standard Rules)

Europa is the operator of PEDL 143, in which it holds a 20% interest, alongside UK Oil & Gas Investments plc 40%, Egdon Resources plc 18.4%, Angus Energy plc 12.5%, Union Jack Oil plc 7.5% and Altwood Petroleum 1.6%.”

Following farm-out to UK Oil & Gas Investments plc, Egdon is fully carried on its remaining 18.4% share of the exploration well costs up to a cap of £3.2 million.

July 24, 2018

TR-1 Notification of Major Holdings

TR-1: Standard form for notification of major holdingsNOTIFICATION OF MAJOR HOLDINGS (to be sent to the relevant issuer and to the FCA in Microsoft Word format if possible)i1a. Identity of the issuer or the underlying issuer of existing shares to which voting rights are attachedii:EGDON RESOURCES PLC1b. Please indicate if the issuer is a non-UK issuer  (please mark with an “X” if appropriate)Non-UK issuer2. Reason for the notification (please mark the appropriate box or boxes with an “X”)An acquisition or disposal of voting rightsXAn acquisition or disposal of financial instrumentsAn event changing the breakdown of voting rightsOther (please specify)iii: Transfer out of holdings by discretionary clients.3. Details of person subject to the notification obligationivNameCANACCORD GENUITY GROUP INCCity and country of registered office (if applicable)VANCOUVER, CANADA4. Full name of shareholder(s) (if different from 3.)vNameDISCRETIONARY CLIENTSCity and country of registered office (if applicable)As above5. Date on which the threshold was crossed or reachedvi:27 APRIL 20186. Date on which issuer notified (DD/MM/YYYY):30 APRIL 20187. Total positions of person(s) subject to the notification obligation% of voting rights attached to shares (total of 8. A)% of voting rights through financial instruments(total of 8.B 1 + 8.B 2)Total of both in % (8.A + 8.B)Total number of voting rights of issuerviiResulting situation on the date on which threshold was crossed or reached10.408510.4085259,984,822Position of previous notification (ifapplicable)9.95859.95858. Notified details of the resulting situation on the date on which the threshold was crossed or reachedviiiA: Voting rights attached to sharesClass/type ofsharesISIN code (if possible)Number of voting rightsix% of voting rightsDirect(Art 9 of Directive 2004/109/EC) (DTR5.1)Indirect(Art 10 of Directive 2004/109/EC) (DTR5.2.1)Direct(Art 9 of Directive 2004/109/EC) (DTR5.1)Indirect(Art 10 of Directive 2004/109/EC) (DTR5.2.1)GB00B28YML2927,060,57110.4085SUBTOTAL 8. A27,060,57110.4085B 1: Financial Instruments according to Art. 13(1)(a) of Directive 2004/109/EC (DTR5.3.1.1 (a))Type of financial instrumentExpirationdatexExercise/Conversion PeriodxiNumber of voting rights that may be acquired if the instrument is exercised/converted.% of voting rightsSUBTOTAL 8. B 1B 2: Financial Instruments with similar economic effect according to Art. 13(1)(b) of Directive 2004/109/EC (DTR5.3.1.1 (b))Type of financial instrumentExpirationdatexExercise/Conversion Period xiPhysical or cash settlementxiiNumber of voting rights % of voting rights SUBTOTAL 8.B.29. Information in relation to the person subject to the notification obligation (please mark theapplicable box with an “X”)Person subject to the notification obligation is not controlled by any natural person or legal entity and does not control any other undertaking(s) holding directly or indirectly an interest in the (underlying) issuerxiiiFull chain of controlled undertakings through which the voting rights and/or thefinancial instruments are effectively held starting with the ultimate controlling natural person or legal entityxiv (please add additional rows as necessary)XNamexv% of voting rights if it equals or is higher than the notifiable threshold% of voting rights through financial instruments if it equals or is higher than the notifiable thresholdTotal of both if it equals or is higher than the notifiable thresholdCanaccord Genuity Group Inc.10.408510.4085Canaccord Genuity Wealth Group Holdings Limited10.408510.4085Canaccord Genuity Wealth Group Holdings (Jersey) Limited10.408510.4085Hargreave Hale Ltd10.408510.4085 10. In case of proxy voting, please identify:Name of the proxy holderThe number and % of voting rights heldThe date until which the voting rights will be held11. Additional informationxviPlace of completionBLACKPOOL, ENGLANDDate of completion30 APRIL 2018 

May 1, 2018

Response to Written Ministerial Statement on UK Shale Gas

Egdon Resources welcomes the Government's support and commitment to our industry as laid out in the Written Ministerial Statement ("WMS") of today from the Department of Business, Energy and Industrial Strategy (BEIS) and the Department for Housing, Communities and Local Government .(DHCLG).The statement itself constitutes a material consideration in planning decisions (i.e. carries weight in law) and reiterates that shale gas development is of national importance. The Government will publish revised planning practice guidance on shale development in the summer. It will also launch two consultations in the period; one that will consider allowing exploration wells to be drilled under permitted development (i.e. without the requirement of a full planning application) and the other to consult on the inclusion of shale production projects into the Nationally Significant Infrastructure Projects regime.The full text of the WMS can be found atwww.parliament.uk/business/publications/written-questions-answers-statements/written-statement/Commons/2018-05-17/HCWS690Commenting Mark Abbott, Managing Director of Egdon Resources plc, said:“Egdon welcomes the Government’s announcement today which emphasised the national importance that shale gas exploration and development has in delivering a safe and secure energy source, whilst meeting the country’s Climate Change obligations. In particular we welcome the measures the Government has introduced on making the planning process “faster and fairer” and providing additional resources to help stretched local authorities.Gas is used to heat more than 80% of the UK’s households and for cooking in more than 60% of the UK's homes. Whilst renewable sources of energy provide a growing share of our electricity, gas still accounts for nearly half. We currently import 50% of our gas needs at a significant financial cost to the UK taxpayer - over £13 million a day - and that figure is set to grow to almost 80% by 2035.The UK’s gas reserves contribute to ensuring the country has a secure, affordable and low carbon energy source.”

May 17, 2018

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