TIDMEDR
RNS Number : 3007V
Egdon Resources PLC
01 November 2017
1 November 2017
EGDON RESOURCES PLC
("Egdon" or "the Company")
INEOS Acquires Interests in Egdon's Core Shale Gas Area
Egdon notes that INEOS Upstream Limited ("INEOS") has recently
completed its acquisition of Total E&P Limited's ("Total")
interests in certain UK onshore licences held jointly with Egdon in
Gainsborough Trough area.
There is no change to Egdon's financial position or equity
interests resulting from this transaction. Total's obligations to
carry Egdon in respect of PEDL 139 and 140 have been taken over by
INEOS in full.
Following completion of the acquisition the new equity interests
in the licences are as outlined in the table below:
Licence Region Equity interests post Operator
transaction
-------- ---------------------- --------------------------- ---------
PEDL North Nottinghamshire IGas 32%, INEOS 40%, Egdon IGas
139 14.5%, ECorp 13.5%
-------- ---------------------- --------------------------- ---------
PEDL North Nottinghamshire IGas 32%, INEOS 40%, Egdon IGas
140 14.5%, Ecorp 13.5%
-------- ---------------------- --------------------------- ---------
PEDL Yorkshire IGas 35%, INEOS 30%, Total IGas
273 20%, Egdon 15%
-------- ---------------------- --------------------------- ---------
PEDL Yorkshire IGas 35%, INEOS 30%, Total IGas
305 20%, Egdon 15%
-------- ---------------------- --------------------------- ---------
PEDL Lincolnshire IGas 35%, INEOS 30%, Total IGas
316 20%, Egdon 15%
-------- ---------------------- --------------------------- ---------
INEOS has also acquired from Total, Opt-In rights to Egdon's
operated licence PEDL209, as announced in April 2017, and the
associated carry of GBP13.47m (GBP4.85m net to Egdon's 36% interest
if the option is exercised).
Commenting on the deals, Mark Abbott, Managing Director of Egdon
Resources plc, said:
"INEOS has made very substantial commitments to UK shale
exploration and Egdon looks forward to working with INEOS in
PEDL139/140. Equally we are pleased to welcome INEOS into our 14th
Round licences and also to PEDL209 should INEOS exercise its option
to participate.
We now look forward to the drilling of Springs Road-1 in 2018
and further proof of concept exploration across the play in Egdon's
core area of Gainsborough Trough."
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:
Historical Total Deals with Egdon Resources et al
In January 2014, we announced two highly significant deals with
Total, the first international major to take a position in UK
shale-gas. The first was a farm-in by Total to licences PEDL139/140
where they will earn a 40% interest through a carried work
programme of up to c. GBP28 million ($46.5 million) with a minimum
commitment of c. GBP12 million. As a result of this and other
linked transactions Egdon now holds a 14.5% interest in the
licences, up from 13.5% previously, and received c. GBP0.37 million
in cash in 2014 under inter-party agreements.
The second was a Farm-in Option Agreement in respect of PEDL209,
whereby Total had an option, exercisable until 31 December 2015, to
earn a fifty per cent 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-1 (2016 dry hole) and two other prospects, all of which
are purely conventional and were excluded from the option. In April
2017 Egdon entered into a new Opt-In Agreement with Total on
PEDL209. Under the terms of the agreement, Total has an option to
farm-in to unconventional resources exploration in PEDL209,
exercisable until 31 December 2018 and to earn a 36% interest in
the licence by paying Egdon's remaining 36% (together with Total's
own 36% interest) of an exploration programme of up to a gross
GBP13.47 million which would include seismic acquisition and the
drilling of a well.
These transactions were intended to deliver a significant work
programme designed to de-risk the Gainsborough Trough
Bowland-Hodder shale-gas play. Since signature, we have completed
3D seismic acquisition over parts of PEDL139/140 and the operator
completed a period of community engagement ahead of planning and
permitting work culminating in the receipt of planning permission
for Springs Road 1 & 2 wells in November 2016.
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 France 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 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 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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