REG - Egdon Resources PLC - Update on PL81 and PEDL347

Egdon ResourcesAnnouncement

07/09/2023 07:00

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RNS Number : 6126L  Egdon Resources PLC  07 September 2023

7 September 2023

EGDON RESOURCES PLC

("Egdon" or "the Company")

Farm-in and Equalisation of Interests - PL81 and PEDL347

Egdon Resources plc (AIM:EDR), the UK Energy Company, is pleased to advise
that further to the announcement of 7 August 2023, Egdon, York Energy (UK)
Holdings Limited ("York") and Cuadrilla North Cleveland Limited ("Cuadrilla")
have executed a fully termed agreement to enable a farm-in and equalisation of
interests between the PL81 and PEDL347 licences (The Agreement).

Under the terms of the Agreement Egdon, York and Cuadrilla shall procure that
legal and beneficial interests in both PL081 and PEDL347 (the "Licences") are
assigned between them so that both licences are held Egdon 52.5%, Cuadrilla
25% and York 22.5%.  Egdon would be appointed as the operator of the
Licences. Following recovery of Egdon's costs of the farm-in it will assign a
further 2.5% interest in both the Licences to York.

As consideration Egdon will pay 100% of the costs associated with the
planning, drilling, logging, and either short term testing and completion or
plugging and abandonment of a well to optimally test the Weaverthorpe Prospect
within the Licences (the "Work Programme").  Egdon will have a period of
three years to complete the Work Programme.

The assignment of the Licence interests to Egdon, York and Cuadrilla and the
transfer of operatorship to Egdon will be subject to the usual NSTA approvals.

The PL081 and PEDL347 licences contain the Weaverthorpe Prospect
("Weaverthorpe") which is a shallow (c. 1000 metres) Sherwood Sandstone
(Triassic) conventional prospect located immediately up-dip of interpreted gas
pay in the Fordon-2 well (drilled by BP in 1974). Egdon's technical and
operational studies have confirmed Weaverthorpe as a material, commercially
viable prospect.

Commenting on the Agreement Mark Abbott, Managing Director of Egdon, said:

"I am pleased we have been able to finalise this Agreement in a timely fashion
and now look forward to working with York, Cuadrilla and our wider
stakeholders on delivering the planned Work Programme."

For further information please contact:

Egdon Resources plc

Mark Abbott, Martin
Durham
01256 702 292

 

Buchanan

Ben Romney, Barry
Archer
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

 

 

Qualified Person Review

In accordance with the AIM Rules - Note for Mining and Oil and Gas Companies,
this release has been reviewed by Mark Abbott, Managing Director of Egdon, who
is a geoscientist with over 30 years' experience and is a member of the
Petroleum Exploration Society of Great Britain and a Fellow of the Geological
Society.  Mr Abbott has consented to the inclusion of the technical
information in this release in the form and context in which it appears.

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.

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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