TIDMEDR

RNS Number : 0101S

Egdon Resources PLC

14 March 2016

14 March 2016

EGDON RESOURCES PLC

("Egdon" or "the Company")

Completion of drilling operations Laughton-1 Well

Egdon Resources plc (AIM:EDR) announces the completion of drilling operations at the Laughton-1 conventional exploration well in UK Onshore Licence PEDL209 located in Lincolnshire.

The Laughton-1 well was spudded on 12 February and has reached a total depth of 1,700m in line with the pre-drill prognosis. During drilling, the well recorded hydrocarbon shows from a number of potential reservoir sequences including the Kilburn Sandstone, Chatsworth Grit, Ashover Grit and Kinderscout Grit. The Silkstone Rock primary objective was poorly developed in the well. Analysis of the wireline log data indicates that the hydrocarbon saturations associated with the shows are not sufficiently encouraging to warrant testing.

The well is currently being plugged before the drilling rig is released from contract and in due course the wellsite will be fully restored to its original condition as agricultural land.

Following the drilling of Laughton-1 the licence interests in the Laughton Prospect and the two other conventional prospects in PEDL209 are

   Egdon Resources U.K. Limited                                       :  50% 
   Blackland Park Exploration Limited                                 :  28% 
   Stelinmatvic Industries Limited                                        :  12% 
                Union Jack Oil plc                                                         :  10%

Commenting on the results at Laughton-1, Mark Abbott, Managing Director of Egdon said:

"The drilling of the Laughton-1 conventional exploration well fulfils Egdon's farm-in obligation and so earns our 50% operated interest in PEDL209. The well was drilled within budget and without incident. This completes the work commitment for the licence's first term and allows it to proceed into its second term during which the remaining conventional and unconventional hydrocarbon potential will be further evaluated."

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, Sarah Wharry (Corporate Finance)                                      020 7894 7000

Richard Redmayne (Corporate Broking)

Joint Broker - VSA Capital Limited

Andrew Monk (Corporate Broking) 020 3005 5000

Andrew Raca (Corporate Finance)

PEDL209

In January 2016 Egdon announced that Union Jack will earn a 10% interest in the Laughton-1 exploration well and two other conventional prospects in PEDL209, in return for paying 16.67% of the cost of the well.

In January 2014 a Farm-in Option Agreement was reached with Total in respect of PEDL209, whereby Total has an option, to earn a 50% interest in the licence by paying for an exploration programme of GBP13.47 million. Egdon received a cash payment of GBP0.92 million and retained the exploration rights at Laughton and two other prospects, all of which are purely conventional and are excluded from the option.

Following exercise of the option the licence interests in the unconventional resources would be:

 
Egdon Resources U.K. Limited         30% 
Total E&P UK Limited                 50% 
Blackland Park Exploration Limited   14% 
Stelinmatvic Industries Limited      6%

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 thirty six licences in the UK and France and is awaiting the issue of a further nine new UK licences in the 14(th) Round. The Company has an active programme of exploration, appraisal and development within its balanced portfolio of oil and gas assets and 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 potential recoverable hydrocarbons 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).

This information is provided by RNS

The company news service from the London Stock Exchange

END

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