Egdon Resources PLC Sale of interest in Fiskerton Airfield Oil Field (5878V)
November 06 2017 - 2:00AM
UK Regulatory
TIDMEDR
RNS Number : 5878V
Egdon Resources PLC
06 November 2017
6 November 2017
EGDON RESOURCES PLC
("Egdon" or "the Company")
Sale of interest in the Fiskerton Airfield Oil Field
Egdon Resources plc (AIM:EDR) is pleased to announce the sale of
a 20% interest in the recently acquired producing Fiskerton
Airfield oil field in Lincolnshire licence EXL294 to Union Jack Oil
plc ("Union Jack").
The cash consideration for the 20% interest is approximately
GBP137,000. In addition, Union Jack will wholly fund re-processing
of the 3D seismic dataset at a gross cost of GBP35,000. The
combined consideration and carry is equivalent to approximately
GBP165,000 (or approximately $218,000).
The effective date of the agreement is 3 November 2017 and Union
Jack will receive 20% of all production revenues from Fiskerton
from that date. Completion of the acquisition is subject to Oil and
Gas Authority approval.
Following completion of the transaction the interests held in
EXL294 will be:
Egdon Resources U.K. ltd 80%
Union Jack Oil plc 20%
On 10 July 2017 Egdon Resources U.K. Limited (or "the Company")
announced the acquisition of a 100% interest in, and operatorship
of the Fiskerton Airfield oil field from Cirque Energy (UK) Ltd
("Cirque") for a cash consideration of $750,000. This acquisition
completed on 27 October 2017.
Commenting on the sale, Mark Abbott, Managing Director of Egdon
Resources plc, said:
"We are pleased to welcome Union Jack as a partner on the
Fiskerton Airfield Oil Field. We have elected to sell a minority
interest in the field to manage our overall financial exposure to
the asset going forward and to enable evaluation of the up-side at
minimal cost through the carried seismic reprocessing. As we stated
back in July 2017 the field has suffered from a lack of investment
over recent years and we plan to undertake simple low-cost
workovers to enhance production and profitability in the
short-term, adding valuable near-term cash-flow to Egdon's
portfolio. In the longer term, the reprocessed 3D seismic will
inform our views on the potential to enhance productivity through
in-fill drilling."
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:
Fiskerton Airfield - The Fiskerton Airfield oil field is located
approximately 7 kilometres to the East of the City of Lincoln. The
field was discovered in 1997 and cumulative production has totalled
around 440,000 barrels of oil from the most likely mapped Oil in
Place estimated at 2.2 million barrels. The oil is of good quality
(35.2degAPI) and is exported by road tanker to Immingham, North
East Lincolnshire. Egdon estimate that in excess of 100,000 barrels
of oil remain recoverable from the existing wells. The second
producing well (FA-1) is currently shut-in awaiting a workover. The
field also has a dedicated water disposal well to reinject produced
water into the reservoir for pressure support (FA-2). The field has
suffered from a lack of investment in recent years.
The field is currently producing circa 16 bopd from one of two
production wells (FA-3). Egdon plans to enhance the cash flows and
profitability of the operation by increasing production initially
to between 30 and 40 bopd via low cost well interventions. During
the next few months it is planned to workover both the currently
producing FA-3 and the shut-in FA-1 wells by installing new tubing,
pumps and isolating water producing zones.
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 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
DISMMMGMGDLGNZZ
(END) Dow Jones Newswires
November 06, 2017 02:00 ET (07:00 GMT)
Egdon Resources (LSE:EDR)
Historical Stock Chart
From Mar 2024 to Apr 2024
Egdon Resources (LSE:EDR)
Historical Stock Chart
From Apr 2023 to Apr 2024