Egdon Resources PLC UK Onshore Producing Oil Field Acquisition (5156K)
July 10 2017 - 2:00AM
UK Regulatory
TIDMEDR
RNS Number : 5156K
Egdon Resources PLC
10 July 2017
10 July 2017
EGDON RESOURCES PLC
("Egdon" or "the Company")
UK Onshore Producing Oil Field Acquisition - Fiskerton
Airfield
Egdon Resources plc (AIM:EDR) is pleased to announce the
acquisition of the producing Fiskerton Airfield oil field in
Lincolnshire licence EXL294.
Egdon Resources plc (or "the Company") will acquire 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 (c. GBP0.58 million) payable from existing cash resources
upon completion. The effective date of the acquisition will be 1
January 2017.
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 field is currently producing circa 19 barrels of oil per day
("bopd") from one of two production wells (FA-3). 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. 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. It is planned to workover both the
currently producing FA-3 and the shut-in FA-1 wells during 2017 by
installing new tubing, pumps and isolating water producing
zones.
Completion of the acquisition is subject to the usual OGA
approvals.
Commenting on the acquisition, Mark Abbott, Managing Director of
Egdon Resources plc, said:
"We are pleased to acquire the Fiskerton Airfield oil field for
a modest cash outlay. 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, we will investigate 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, Sarah Wharry (Corporate Finance) 020 7894 7000
Mark Westcott (Sales)
Joint Broker - VSA Capital Limited
Andrew Monk (Corporate Broking) 020 3005 5000
Andrew Raca (Corporate Finance)
AIM Rule Disclosure
The acquisition of the interest in the Fiskerton Airfield oil
field is a substantial transaction as defined in the AIM Rules for
Companies ("AIM Rules"). With respect to disclosures required under
the AIM Rules for substantial transactions, due to a lack of
historical financial information available to the Company with
respect to Cirque's activities at the oil field, the Company is not
able to provide disclosure on the profits or losses attributable to
the interest in the Fiskerton Airfield oil field in this
announcement. Egdon has a thorough understanding of current and
likely future operating costs on the field and the costs of the
planned workovers. The Company will record the acquisition in its
books at the purchase cost.
Notes to Editors:
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 44 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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