Egdon Resources PLC P2304 Offshore Licence Acquisition (2100Y)
December 04 2017 - 2:00AM
UK Regulatory
TIDMEDR
RNS Number : 2100Y
Egdon Resources PLC
04 December 2017
4 December 2017
EGDON RESOURCES PLC
("Egdon" or "the Company")
P2304 Offshore Licence Acquisition
Egdon Resources plc (AIM:EDR) is pleased to announce the
acquisition of 100% interest in Promote Licence P2304 (UKCS Block
41/24) from Arenite Petroleum Limited ("Arenite") and Europa Oil
& Gas Limited ("Europa"). P2304 is located to the immediate
south of Egdon's 100% owned licence P1929 (UKCS Blocks 41/18 and
41/19) offshore North Yorkshire, which contains the 1966 Resolution
gas discovery.
The consideration comprises the immediate reimbursement of the
2017 licence rental, OGA Levy and vendors' legal costs (c.
GBP15,000 in total) and future staged payments contingent on the
successful completion of various potential exploration activities
and/or on reaching certain production milestones.
The Resolution discovery structural closure is mapped by Egdon
as extending southwards from P1929 into P2304 and the licence also
contains a second gas discovery confirmed by wells, 41/24A-1 (1969,
Total), 41/24A-2 (1981, Total), and 41/24-3 (1993, Conoco) which
tested at rates of up to 34 million cubic feet of gas per day and
1280 barrels per day of condensate from the Plattendolomit, a
Zechstein carbonate unit slightly younger than the Hauptdolomit
reservoir tested in the Resolution discovery well. As with P1929,
P2304 contains additional prospectivity in deeper gas bearing
Carboniferous sandstones underlying the proven Zechstein reservoir
sequences.
P2304 was awarded to Europa and Arenite as a Promote Licence in
the UK Offshore 28(th) Licensing Round with an effective date of 1
December 2015, and the OGA has agreed to extend the Initial Term of
the Licence until 1 December 2018. The transfer of interests in
P2304 from Europa and Arenite to Egdon is subject to OGA
approval.
Commenting on the acquisition, Mark Abbott, Managing Director
said: "We are pleased to have acquired this highly prospective
acreage at a nominal up-front consideration. The licence contains a
mapped extension of the Resolution gas accumulation and an
additional proven gas discovery. We will now work to integrate our
evaluation of the new licence into our detailed understanding of
P1929 with a view to progressing appraisal of the proven gas
resources in the combined area."
For further information please contact:
Egdon Resources plc
Mark Abbott 01256 702 292
Buchanan
Richard Darby, Anna Michniewicz 020 7466 5000
Nominated Adviser and Broker - Cantor Fitzgerald Europe
David Porter (Corporate Finance) 020 7894 7000
Caspar Shand Kydd / Alex Pollen (Sales)
Joint Broker - VSA Capital Limited
Andrew Monk (Corporate Broking) 020 3005 5000
Andrew Raca (Corporate Finance)
Notes to Editors:
Consideration Details
The contingent elements of the consideration comprise:
-- On completion of the acquisition of a 3D survey over any part
of the Licence (other than a third party survey to which neither
the P2304 Licensees nor the licensees of the P1929 licence have
access) a cash payment of fifty thousand Pounds (GBP50,000).
-- On completion of the drilling of the first well located
wholly or partly within the area covered by the Licence a cash
payment of one hundred thousand Pounds (GBP100,000).
-- On first production, other than testing, from any well
located wholly or partly within the area covered by the Licence a
cash payment of one hundred thousand Pounds (GBP100,000).
-- On reaching a total production of five billion standard cubic
feet of gas (5 bcf) (or oil equivalent) from any wells located
wholly or partly within the area covered by the Licence a cash
payment of two hundred thousand Pounds (GBP200,000).
-- On reaching a total production of twenty billion standard
cubic feet of gas (20 bcf) (or oil equivalent) from any wells
located wholly or partly within the area covered by the Licence a
cash payment of one million Pounds (GBP1,000,000).
Egdon Resources plc (LSE: EDR) is an established UK-based
exploration and production company focused on onshore exploration
and production in the hydrocarbon-producing basins of the UK.
Egdon holds interests in 43 licences in the UK 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 the UK.
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 hydrocarbon volumes 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).
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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