Egdon Resources PLC Resolution 3D Survey Update (6885K)
January 06 2021 - 2:00AM
UK Regulatory
TIDMEDR
RNS Number : 6885K
Egdon Resources PLC
06 January 2021
6 January 2021
EGDON RESOURCES PLC
("Egdon" or "the Company")
Resolution 3D Survey Update
Egdon Resources plc (AIM: EDR, "Egdon") provides an update on
the timing of the 3D seismic survey over the Resolution gas
discovery in offshore licences P1929 and P2304.
Shell Oil U.K. Limited ("Shell"), the operator of offshore
licences P1929 and P2304, has advised Egdon that the marine 3D
seismic survey, planned over the Resolution and Endeavour gas
discoveries is now anticipated to be acquired in February 2022
rather than Q1 2021. This follows the results of a revised
environmental impact assessment and extensive stakeholder
engagement in respect of the planned survey. This work concluded
that the commercial impact on local fishing businesses, along with
potential impacts on marine mammalian movements, breeding season
for sea birds and tourism, meant that the optimum time window to
successfully acquire seismic data in 2021 was during February, not
March/April as originally anticipated.
Unfortunately, it was not possible to finalise all of the
required agreements in respect of managing the fishing vessels
operating in the survey area within the timeframe necessary to
enable the survey to take place in February 2021.
As such, and subject to the OGA consenting to an amendment to
the licence obligations, it is now intended to undertake the survey
in February 2022, to enable all agreements with commercial and
other stakeholders to be finalised well in advance of the planned
survey.
For further information please contact:
Egdon Resources plc
Mark Abbott / Martin Durham 01256 702 292
Buchanan
Ben Romney, Chris Judd 020 7466 5000
Nominated Adviser & Joint Broker - WH Ireland Limited
Chris Hardie 020 7220 1666
Lydia Zychowska
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 focused on onshore exploration
and production in the hydrocarbon-producing basins of the UK.
Egdon holds interests in 41 licences in the UK and has an active
programme of exploration, appraisal and development within its
portfolio of oil and gas assets. Egdon is an approved operator in
the UK. Egdon was formed in 1997 and listed on AIM in December
2004.
Resolution and Endeavour Gas Discoveries
A Competent Person's Report prepared by Schlumberger Oilfield UK
PLC (April 2019) reported Mean Contingent Gas Resources of 231
billion cubic feet of gas ("bcf"), with a P90 to P10 range of 100
to 389 bcf, attributable to the Resolution gas discovery (P1929).
The Resolution discovery was made by Total in 1966 when well
41/18-2 flow tested gas from the Permian aged Zechstein carbonate
(limestone) reservoir. Additionally, Egdon estimates that the
Endeavour gas discovery (P2304) contains Mean Contingent Resources
of 18 bcf, with a P90 to P10 range of 10 to 28 bcf.
Egdon Resources plc has completed a farm-out to Shell U.K.
Limited ("Shell") in respect of offshore licences P1929 and P2304
which contain the Resolution and Endeavour gas discoveries. Under
the terms of the farm-out Egdon has transferred a 70% interest and
operatorship in both licences. Egdon retains a 30% interest in the
Licences. Under the terms of the farm-out, Shell will pay 85% of
the costs of the acquisition and processing of the 3D seismic
survey covering both the Resolution and Endeavour gas discoveries.
The carry on the acquisition costs will be capped at US$5 million
gross, beyond which Egdon would pay 30% of the survey costs.
Furthermore, Shell will also pay 100% of all studies and manpower
costs through to the well investment decision on the Licences.
Qualified Person Review
In accordance with the AIM Rules - Note for Mining and Oil and
Gas Companies, this release has been reviewed by Mark Abbott,
Managing Director of Egdon, who is a geoscientist with over 30
years' experience and is a member of the Petroleum Exploration
Society of Great Britain and a Fellow of the Geological Society. Mr
Abbott has consented to the inclusion of the technical information
in this release in the form and context in which it appears.
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.
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