Independent Gas in Place Estimates
Independent Gas in Place Estimates of some of Egdon’sNorthern England LicencesEgdon Resources plc (AIM:EDR) is pleased to announce a summary of the results of an independent review of the shale-gas potential of some of Egdon’s Northern England licences.ERC Equipoise Ltd ("ERCE"), the independent reservoir evaluation specialists, has completed a review of undiscovered gas initially in place (“GIIP”) in certain of Egdon’s licences where potential for shale-gas exists within the Carboniferous age Bowland-Hodder sequence, as defined by the British Geological Survey in their report of 2013 [i].ERCE has reported net Egdon estimated mean GIIP of approximately 18 trillion cubic feet of gas (“TCF”) with a range of approximately 8 to 31 TCF and a mid-case of 15 TCF in seven of Egdon’s Licences. The ERCE letter will be published on the Egdon website later today.ERCE’s estimates of undiscovered GIIP are subject to exploration risk, which may be considerable. ERCE has not assessed this risk as no Prospective Resources have yet been attributed to these properties by Egdon, and further geoscientific data need to be acquired to be able to quantify these resources. ERCE notes that mining of the overlying coal measures has occurred in a number of the licences, which may affect site access and drilling operations.In the case Prospective Resources are identified within these licences, there is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources.Notes to Editors:Egdon 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 and France.Egdon currently holds interests in twenty seven 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.Evaluation of undiscovered gas initially in place has been assessed in accordance with 2007 Petroleum Resources Management System prepared by the Oil and Gas Reserves Committee of the Society of Petroleum Engineers (SPE) and reviewed and jointly sponsored by the World Petroleum Council (WPC), the American Association of Petroleum Geologists (AAPG) and the Society of Petroleum Evaluation Engineers (SPEE).[i] Andrews, I.J. 2013. The Carboniferous Bowland Shale gas study: geology and resource estimation. British Geological Survey for Department of Energy and Climate Change, London, UK.View or Download ERCE Egdon Shale GIIP Summary Letter
Completion of 3D seismic PEDL139 & 140
Egdon Resources plc (AIM:EDR) notes the announcement made today by IGas Energy plc ("IGas") as it relates to UK Onshore Petroleum Exploration and Development Licences PEDL139 and PEDL140 located in the Gainsborough Trough geological basin, where Egdon holds a 14.5% interest.
IGas have reported the completion of 3-D seismic acquisition on PEDL139/140 and a forward plan to appraise the results with a view to site selection, before preparing both an Environmental Risk Assessment and subsequently a full Environmental Impact Assessment for the identified exploration well. In parallel a comprehensive community engagement programme in the selected area will commence.
Notes to Editors:
PEDL139/140:
UK Onshore Petroleum Exploration and Development Licences PEDL139 and PEDL140 ("The Licences") are located in the Gainsborough Trough geological basin where shale-gas potential has been identified in rocks of Carboniferous age which exist at depth beneath the area. The licences are subject to a farm-in by Total as announced in January 2014. Under the terms of The Agreement Total will earn a 40% interest in The Licences through the funding of a fully carried work programme of up to $46.5 million (ca. £29 million). Total has the option to exit after an initial period of this work programme corresponding to a minimum commitment of $19.5 million (ca. £12 million). The programme includes the acquisition of 3D seismic, the drilling and testing of a vertical exploration well and associated well pad construction, and, conditional on the success of the testing of the exploration well, the drilling and flow testing of a second appraisal horizontal well.
The Licences cover an area of 240 square kilometres and are immediately adjacent to licences PEDL209 (which is subject to a farm-in option with Total) and PL161/162 where Egdon has further interests.
Appointment of Joint Broker
Egdon Resources plc (AIM:EDR) is pleased to announce that it has appointed VSA Capital as its joint broker, alongside Cantor Fitzgerald.VSA Capital is an investment banking and institutional broking group focused on natural resources and has been appointed due to its knowledge and experience of unconventional hydrocarbons and investors in the oil & gas sector.For further information please contact:Egdon Resources plcMark Abbott, Jerry Field01256 702292BuchananRichard Darby, Gabriella Clinkard020 7466 5000Nominated Adviser and Broker - Cantor Fitzgerald EuropeDavid Porter, Tom Sheldon (Corporate Finance)020 7894 7000Richard Redmayne (Corporate Broking)Joint Broker - VSA Capital LimitedAndrew Monk, (Corporate Broking)020 3005 5000Andrew Raca (Corporate Finance)
Notification of Results
Egdon Resources plc (AIM:EDR) announces that its Interim Results for the six months ended 31 January 2014 will be released on Friday 25 April 2014.
An analyst meeting will be held at 9.30am on 25 April 2014 at the offices of Buchanan, 107 Cheapside, London, EC2V 6DN.
Interim Results for the Six Months Ended 31 January 2014
Press comment
EGDON RESOURCES PLC
("Egdon" or "the Company")
Press comment
Egdon Resources plc (AIM:EDR) notes the press commentary on Saturday 10 May and confirms it is in advanced discussions with Alkane Energy on a potential transaction involving an acquisition of Alkane’s onshore shale assets for 40‚000‚000 ordinary shares in Egdon with an accompanying fundraising of £7 million at 20 pence per share for working capital purposes. The fund raise is expected to be implemented via a placing of £6.4 million and an open offer of £600,000.
The potential transaction and fundraising remain subject to finalisation. The potential transaction is expected to be conditional on approval of the fundraising by Egdon shareholders. An announcement will be made in due course.
Sale of Interests in PEDL118 and PEDL203
Egdon Resources plc (AIM:EDR) is pleased to report that it has reached agreement with Nautical Petroleum AG, a wholly owned subsidiary of Nautical Petroleum plc ("Nautical"), to sell 15% interests in onshore UK Petroleum Exploration and Development Licences ("PEDLs") PEDL118 and PEDL203 located in Nottinghamshire.The consideration comprises a cash sum payable on completion of £200,000 and the payment of £150,000 towards Egdon's costs of the next well to be drilled on PEDL118 or PEDL203. The effective date of the transaction is 31 December 2011.PEDL203 contains the Kirklington-3z producing well which was drilled in 2010 and produced at rates of 15-20 bopd. The Kirklington oil field has all consents and approvals in place for production but is currently shut-in awaiting development of Dukes Wood-1.The contiguous licence PEDL118 contains the abandoned Eakring-Dukes Wood oil field where the Dukes Wood‑1 well was drilled and tested in 2010, with the Ashover Grit "AG4" reservoir interval producing at rates of around 20 bopd. It is intended to dual-complete the Dukes Wood-1 well for production from the AG4 reservoir and for water disposal in the Sub Alton Crawshaw interval. The development has received planning consent and is awaiting environmental and other approvals before being brought into production in conjunction with Kirklington in the first quarter of 2012.Egdon has also identified a number of independent targets on the Eakring/Dukes Wood structure including previously undrilled highs such as Eakring North where additional wells may be drilled at some future point.The transfers of interest are subject to amongst other things approval by the Department of Energy and Climate Change.Following completion the interests in the licences will be as follows:PEDL118Egdon Resources U.K. Limited50%Terrain Energy Limited25%Nautical Petroleum AG15%Angus Energy Eakring Development Ltd10%PEDL203Egdon Resources U.K. Limited50%Terrain Energy Limited25%Nautical Petroleum AG15%Angus Energy Kirklington Development Ltd10%Commenting on the sale Egdon's Managing Director Mark Abbott said:
"This transaction provides a useful cash injection to Egdon ahead of the development of the Dukes Wood-1 well which is expected towards the end of first quarter of 2012. The deal also provides Egdon with a substantial carry on the next well to be drilled in the area."