Egdon Resources PLC Farm-out of Interest in the Laughton-1 Well (9300M)
January 26 2016 - 2:00AM
UK Regulatory
TIDMEDR
RNS Number : 9300M
Egdon Resources PLC
26 January 2016
26 January 2016
EGDON RESOURCES PLC
("Egdon" or "the Company")
Farm-out of Interest in the Laughton-1 Well, PEDL209
Egdon Resources plc (AIM:EDR) is pleased to announce that it has
reached agreement in respect of a farm-out of the Laughton-1
exploration well and two other conventional prospects in PEDL209 to
Union Jack Oil plc ("Union Jack").
Under the terms of the farm-out, 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. The Laughton-1 well is expected to start
drilling during February 2016.
The Laughton-1 well will target a structural trap at a depth of
over 1,500 metres below ground level defined on vintage
two-dimensional seismic data. The Laughton Prospect has multiple
conventional Carboniferous sandstone reservoir targets with the
primary objective being the Silkstone Rock, an approximately 15
metres thick sandstone interval which is productive in the
Corringham Oil Field located five kilometres to the South-East. For
clarity, the operations at the site will not, either now or in the
future, involve the process of High Volume Hydraulic Fracturing for
shale gas.
This farm-out does not include the deeper shale-gas
prospectivity on PEDL209, which is located further to the south and
west, and which remains subject to an option agreement with Total
as announced in January 2015.
On completion of this transaction, which remains subject to
approval from the Oil and Gas Authority, the licence interests in
the Laughton Prospect and the two other conventional prospects in
PEDL209 will be:
Egdon Resources U.K. Limited : 50%
Blackland Park Exploration Limited : 28%
Stelinmatvic Industries Limited : 12%
Union Jack Oil plc : 10%
Commenting on the transaction, Mark Abbott, Managing Director of
Egdon said:
"This farm-out helps to optimise the balance of risk and reward
for the Company in the exploration of PEDL209's conventional oil
resources, reducing our financial exposure to the near-term
Laughton-1 well.
We are once again pleased to welcome Union Jack as a partner
following on from their participation in the 2014 Wressle discovery
(PEDL181), the current drilling of Keddington-5 sidetrack and the
planned Biscathorpe and North Kelsey exploration wells (PEDL253 and
PEDL241 respectively)."
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)
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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