REG - Egdon Resources PLC - Change of Operator PEDL343 (Cloughton)

Egdon ResourcesAnnouncement

28/07/2023 07:00

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RNS Number : 4842H  Egdon Resources PLC  28 July 2023

28 July 2023

EGDON RESOURCES PLC

("Egdon" or "the Company")

Change of Operator PEDL343 (Cloughton)

Egdon Resources plc (AIM:EDR) the UK Energy Company advises that the North Sea
Transition Authority has approved the transfer of operatorship of licence
PEDL343 from Egdon Resources U.K. Limited to Europa Oil & Gas (Holdings)
plc ("Europa").  The transfer is part of a process of ensuring that Egdon
prioritises core projects whilst ensuring other potentially high value
opportunities are progressed at pace.

We also note the release made today by Europa in relation to this which states
the following;

"Europa Oil & Gas (Holdings) plc, the AIM traded UK and Ireland focused
oil and gas exploration, development, and production company, is pleased to
announce that it has assumed operatorship of licence PEDL343, which holds the
Cloughton gas discovery.

Operatorship of the licence was transferred from Egdon Resources U.K. Limited
("Egdon") to Europa and approved by the North Sea Transition Authority, the
industry regulator, with effect from 27 July 2023. The partners in PEDL343 are
Europa (40 per cent), Egdon (40 per cent) and Petrichor (20 per cent).

The Cloughton field was discovered in 1986 and encountered gas throughout the
Carboniferous section. The well tested at rates of up to 40,000 scf/day on
natural flow, however with the right completion and production optimisation
techniques, the Company believes that a well could flow at 6 mmscf/day. The
gas is good quality sweet gas with >98% methane and ethane.

The discovery well encountered 60 metres of Carboniferous net sandstone
reservoir with high gas saturations. Given the large areal closure and net
sand present within the well there is a large volume of gas in place that has
already been discovered. Cloughton is therefore a gas appraisal opportunity
with the critical challenge being to obtain commercial flowrates from future
production testing operations. A location for an appraisal well pad has been
identified and following successful testing operations, the field would be
monetised by connecting to the nearby gas grid. Such developments remain
subject to securing necessary permits and approvals."

Commenting Mark Abbott, Managing Director of Egdon, said;

"This transfer of operatorship allows Egdon to maintain a clear focus on our
near-term priority projects whilst also enabling Europa to apply its resources
to progressing the Cloughton prospect to potential appraisal drilling
operations as quickly as possible."

 

 

For further information please contact:

Egdon Resources plc

Mark Abbott, Martin
Durham
01256 702 292

 

Buchanan

Ben Romney, Jon
Krinks
020 7466 5000

 

Nominated Adviser & Joint Broker - WH Ireland
Limited

Antonio Bossi, Chris Hardie, James
Bavister
020 7220 1666

 

Joint Broker & Financial Advisors - VSA Capital Limited

Andrew Monk, Andrew
Raca
020 3005 5000

 

 

About Egdon

 

Egdon Resources plc (LSE: EDR) is an established UK-based energy company
focused on onshore exploration and production in the UK.

Egdon holds interests in 33 licences in the UK and has an active programme of
exploration, appraisal and development within its 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.

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