UK Onshore Producing Oil Field Acquisition – Fiskerton Airfield
Egdon Resources plc (AIM:EDR) is pleased to announce the acquisition of the producing Fiskerton Airfield oil field in Lincolnshire licence EXL294.Egdon Resources plc (or “the Company”) will acquire a 100% interest in, and operatorship of the Fiskerton Airfield oil field from Cirque Energy (UK) Ltd (“Cirque”) for a cash consideration of $750,000 (c. £0.59 million) payable from existing cash resources upon completion. The effective date of the acquisition will be 1st January 2017.The Fiskerton Airfield oil field is located approximately 7 kilometres to the East of the City of Lincoln. The field was discovered in 1997 and cumulative production has totalled around 440,000 barrels of oil from the most likely mapped Oil in Place estimated at 2.2 million barrels. The oil is of good quality (35.2°API) and is exported by road tanker to Immingham, North East Lincolnshire. Egdon estimate that in excess of 100,000 barrels of oil remain recoverable from the existing wells.The field is currently producing circa 19 barrels of oil per day (“bopd”) from one of two production wells (FA-3). The second producing well (FA-1) is currently shut-in awaiting a workover. The field also has a dedicated water disposal well to reinject produced water into the reservoir for pressure support (FA-2). The field has suffered from a lack of investment in recent years. Egdon plans to enhance the cash flows and profitability of the operation by increasing production initially to between 30 and 40 bopd via low cost well interventions. It is planned to workover both the currently producing FA-3 and the shut-in FA-1 wells during 2017 by installing new tubing, pumps and isolating water producing zones.Completion of the acquisition is subject to the usual OGA approvals.Commenting on the acquisition, Mark Abbott, Managing Director of Egdon Resources plc, said:“We are pleased to acquire the Fiskerton Airfield oil field for a modest cash outlay. The field has suffered from a lack of investment over recent years and we plan to undertake simple low-cost workovers to enhance production and profitability in the short-term, adding valuable near-term cash-flow to Egdon’s portfolio. In the longer term, we will investigate the potential to enhance productivity through in-fill drilling.” AIM Rule DisclosureThe acquisition of the interest in the Fiskerton Airfield oil field is a substantial transaction as defined in the AIM Rules for Companies (“AIM Rules”). With respect to disclosures required under the AIM Rules for substantial transactions, due to a lack of historical financial information available to the Company with respect to Cirque’s activities at the oil field, the Company is not able to provide disclosure on the profits or losses attributable to the interest in the Fiskerton Airfield oil field in this announcement. Egdon has a thorough understanding of current and likely future operating costs on the field and the costs of the planned workovers. The Company will record the acquisition in its books at the purchase cost.
TR-1: Notification of Major Shareholding
Wressle Planning Appeal Update
Egdon Resources plc (AIM:EDR) announces that it will appeal the decision of North Lincolnshire Council’s Planning Committee of 3 July 2017 to refuse planning consent for a second time for the development of the Wressle Oil Field at Lodge Farm, Wressle, North Lincolnshire (Application PA/2017/696).Notices advertising our intent to appeal will be displayed in the local parishes and published in the local paper over the coming week in accordance with planning law and an appeal will be submitted without delay shortly afterwards.Egdon will request the Planning Inspectorate to co-join this new appeal with the appeal against the refusal of planning permission of 11 January 2017. The first appeal is currently scheduled for early November 2017.Egdon can also advise that it will separately appeal the decision of the 3 July 2017 meeting to refuse application PA/2017/268 which requested a twelve month extension to the existing planning consent for the site.Mark Abbott Managing Director of Egdon Resources plc, said:“We are compelled to bring forward appeals against both of the decisions of North Lincolnshire Council’s special Planning Committee meeting of 3 July 2017. Following a thorough and detailed consultation and evaluation, both applications were recommended for approval by the Council’s Head of Development Management and Building Control and had support from the key statutory and regulatory consultees. In addition the environmental permit for the proposed Wressle development has been issued by the Environment Agency since the original decision in January of this year. We now look forward to presenting our case at the forthcoming public inquiry.”
Biscathorpe-2 Exploration Well - Issue of environmental permits
Egdon Resources plc (AIM:EDR) is pleased to announce the issue by the Environment Agency of the environmental permits required for the planned operated Biscathorpe-2 exploration well on PEDL253 in Lincolnshire. The prospect is located between Lincoln and Louth on the southern margin of the Humber Basin on trend with and to the west of the producing Keddington oil field (14 kilometres, Egdon operated) and the Saltfleetby gas field (20 kilometres).The Biscathorpe-2 well will target a down-dip area of the structure tested by the crestal Biscathorpe-1 well in 1987 by BP which found oil in a 1.2 metres thick sandstone of Westphalian (Carboniferous) age. The sandstone is expected to thicken to the north and east from the original well and the structure has been mapped using reprocessed 3D seismic data. The Mean Gross Prospective Resources at Biscathorpe are estimated by Egdon to be c. 14 million barrels of oil (”mmbo”) and the well has been assessed by the Company as having a 40% chance of success.Current Licence interests in PEDL253 are:Egdon Resources U.K. Limited (Operator) 52.80% (45.60% share of well cost)Montrose Industries Ltd. 35.20% (30.40% share of well cost)Union Jack Oil Plc 12.00% (24.00% share of well cost)The Company expects to commence operations including site construction later in 2017. The well has a planned depth of 2,100 metres.Mark Abbott, Managing Director of Egdon Resources plc, said:“After a long and extremely thorough review of our proposals by the Environment Agency, we are pleased to receive the environmental permits for the proposed Biscathorpe-2 exploration well. This validates our position that the planned operations and procedures will prevent, mitigate and minimise environmental impacts. Egdon takes its safety, environmental and social obligations very seriously and is committed to maintaining the highest standards.We now look forward to drilling this significant conventional oil prospect. If a stratigraphic element to overall trap is proven, the potential resources could be considerably larger than the mean case of 14.0 mmbo.”
Wressle Planning Decision
Egdon Resources plc (AIM:EDR) announces that the North Lincolnshire County Council’s Planning Committee has today again refused planning consent for the development of the Wressle Oil Field at Lodge Farm, Wressle, North Lincolnshire.Mark Abbott Managing Director of Egdon Resources plc, said:“We are very disappointed by the decision of the Committee that again goes against the positive recommendation of their Planning Officer which was determined after an extensive and thorough review of our proposals which included more detailed information to address the specific concerns outlined by North Lincolnshire Council in their refusal of the original application on 11 January 2017.Our business has been operating exploration and production sites in a safe and environmentally sensitive manner across the region for many years, engaging with communities, employing local people and investing in the local supply chain.We will now take forward our appeal against the original 11 January 2017 determination which is due to be heard in November 2017.”
Wressle Planning Meeting
Egdon Resources plc (AIM:EDR) notes that North Lincolnshire County Council’s Planning Committee will meet on Monday 3 July 2017 to determine the new planning application for the Wressle Development which includes additional detailed information to address the specific concerns raised by North Lincolnshire County Council in its 11 January 2017 decision to refuse the original application.The new application has received a recommendation for approval from North Lincolnshire County Council’s Planning Department.The meeting will be held at 2pm Monday 3 July 2017 at North Lincolnshire Council Civic Centre in Scunthorpe.We will update shareholders of any developments from this meeting.Notes to Editors:WressleThe 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/Wressle Planning historyOn 11 January 2017 North Lincolnshire County 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 County 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 County Council in its 11 January 2017 decision to refuse the original application for the development of the Wressle Oil Field.Egdon believe that this dual track approach provides the best opportunity for a successful planning outcome with the minimum delay.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.Egdon Resources plcEgdon Resources plc (LSE: EDR) is an established UK-based exploration and production company primarily focused on onshore exploration and production in the hydrocarbon-producing basins of the UK.Egdon holds interests in 44 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 was formed in 1997 and listed on AIM in December 2004.In accordance with the AIM Rules - Note for Mining and 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 26 years' experience.The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). Upon the publication of this announcement via Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.
UK Onshore Licence Interest Acquisition
Egdon Resources plc (AIM:EDR) is pleased to announce completion of the acquisition of an interest in a licence in the Company’s East Midlands core area.Egdon is acquiring a 50% interest in PEDL278 (UK National Grid Block SE51b) from Celtique Energie Petroleum Limited (“Celtique”) and Investcan Ltd. (“Investcan”) who were originally awarded the licence in the 14th Round. Egdon and Island Gas Ltd (IGas, operator) are each acquiring a 50% interest in the licence from Celtique and Investcan for a nominal cash consideration. The acquisition has already been approved by the Oil and Gas Authority (OGA).The licence contains the Kirk Smeaton tight gas discovery (RTZ, 1985) and other conventional and unconventional prospectivity. This acquisition adds 4,695 net acres to Egdon’s unconventional resources position which now amounts to a total net area of ca. 205,800 acres.Commenting on this new acquisition, Mark Abbott, Managing Director of Egdon Resources plc, said:“We are pleased to acquire a material holding in a licence containing the 1985 Kirk Smeaton tight gas discovery and further prospectivity at minimal cost. This acquisition is consistent with our strategy of enhancing Egdon’s position in core areas where we see significant oil and gas potential.”
Wressle Development - Issue of EA Mining Waste Permit Variation
Egdon Resources plc (AIM:EDR) is pleased to announce the issue by the Environment Agency of the variation to the Mining Waste Permit for the planned Wressle field development and associated operations.The issue of the permit is a key regulatory approval in the proposed Wressle development, and provides support to the new Planning Application as submitted on 28 April 2017.Commenting on the permit approval, Mark Abbott, Managing Director of Egdon said:-“After a long and extremely thorough review of our proposals by the Environment Agency, we are pleased to receive the variation to our environmental permits for the proposed Wressle development and associated operations. This validates our position that the planned operations and procedures will prevent, mitigate and minimise environmental impacts. Egdon takes its safety, environmental and social obligations very seriously and is committed to maintaining the highest standards. We are confident that this will be recognised in the outcome of the new Planning Application.”
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