Egdon Resources Shares Jump on Shell Agreement
January 21 2020 - 8:52AM
Dow Jones News
By Adria Calatayud
Shares in Egdon Resources PLC (EDR.LN) rose Tuesday after the
company said it has signed a farm-in agreement with Royal Dutch
Shell PLC's (RDSB.LN) British subsidiary for two U.K. offshore
licenses.
The U.K. oil-and-gas company said Shell will acquire a 70%
working interest in licenses P1929 and P2304--which respectively
host the Resolution and Endeavour gas discoveries--and be appointed
as operator of the assets, while Egdon will retain a 30%
interest.
Shares in Egdon at 1313 GMT were up 19% at 6.25 pence.
Shell will pay 85% of costs of the acquisition and processing of
a 3D seismic survey covering both the Resolution and Endeavour gas
discoveries up to a maximum amount of $5 million, Egdon said. If
the costs exceed $5 million, Shell will cover 70% of the costs,
Egdon said.
Shell will also pay all studies and manpower costs up to a
well-investment decision on the licenses, Egdon said.
In December, Egdon said it had been granted an extension to the
licenses to May 31 subject to securing a farm-in agreement by Jan.
31.
Write to Adria Calatayud at adria.calatayud@dowjones.com
(END) Dow Jones Newswires
January 21, 2020 08:37 ET (13:37 GMT)
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