Egdon Resources PLC UK Licence Changes (0569D)

TIDMEDR

RNS Number : 0569D

Egdon Resources PLC

04 July 2016

4 July 2016

EGDON RESOURCES PLC

("Egdon" or "the Company")

UK Licence Changes

Egdon Resources plc (AIM:EDR) is pleased to advise that the Oil and Gas Authority ("OGA") has approved various licence extensions and conversions of licences to new model terms, and the relinquishment of one Egdon operated licence.

The OGA has offered holders of existing UK Onshore licences the opportunity to adopt 14(th) Round licence terms which allow licensees to nominate areas to be retained in exchange for additional work programmes. Egdon has elected to follow this path on four operated licences and one further non-operated licence where the partnership has also decided to accept the new licensing terms.

Cleveland Basin

-- The first term of licence P1929 (Egdon 100%) covering UKCS Blocks 41/18 + 41/19 and containing the "A Prospect" has been extended by two years to 19 April 2019 to allow time for Egdon to secure the required permits and to plan and drill a well from an onshore location to appraise this 1966 gas discovery. It has not been possible to complete this process without an onshore licence over the drill-site although this will be addressed by the award of new 14(th) Round licences to Egdon, and we currently expect to finalise and submit a planning application to drill when these new licences are confirmed.

East Midlands

-- The first six year term for PEDL241 (Egdon 80%) containing the drill-ready North Kelsey oil prospect has been extended by one further year to 30 June 2017. (Egdon Resources UK Limited 80% and Union Jack Oil plc 20%)

-- The first term for PEDL253 containing the drill-ready Biscathorpe oil prospect has been extended by one further year to 30 June 2017. (Egdon Resources UK Limited 52.8%, Montrose Industries Limited 35.2% and Union Jack Oil plc 12%)

-- PEDL201 has adopted the new 14(th) Round licence terms and will continue without further relinquishment. (Egdon Resources UK Limited 32.5%, Celtique Energie Petroleum Ltd 32.5%, Corfe Energy Limited 12.5%, Terrain Energy Limited 12.5% and Union Jack Oil plc 10%)

-- PEDL202 has adopted the new 14(th) Round licence terms and will continue without further relinquishment. (Egdon Resources UK Limited 100%)

-- PEDL209 has adopted the new 14(th) Round licence terms and will continue without further relinquishment. (Egdon Resources UK Limited 50%, Blackland Park Exploration Limited 28%, Stelinmatvic Industries Limited 12% and Union Jack Oil plc 10%)

NW England

-- PEDL191 has adopted the new 14(th) Round licence terms and will continue without further relinquishment. (Egdon Resources UK Limited 100%)

Relinquishment

PEDL237 in the Wessex basin has been relinquished as the partners concluded that the bulk of the prospectivity in the area lay in PL090 surrounding Waddock Cross and that resources should be concentrated on that asset.

Non-operated licence changes

We note operator Europa Oil & Gas plc's announcement that PEDL181 (Egdon Resources UK Limited 25%) in the Humber Basin will continue into its second term following the completion of first term work commitments and partial relinquishment.

IGas operated PEDL169 has adopted new 14(th) Round terms and will continue without further relinquishment. (IGas 80%, Egdon Resources UK Limited 20%)

Commenting on the changes, Mark Abbott, Managing Director of Egdon Resources plc, said:

"Following on from the recently announced extension of the Europa operated licence PEDL143 containing the Holmwood prospect, we are pleased to have also been allowed additional time to drill our exciting operated onshore oil prospects at North Kelsey and Biscathorpe, and the offshore "A Prospect" which Egdon estimates may contain recoverable reserves of approximately 160 billion cubic feet of gas.

In addition we are pleased to have been able to adopt the new 14(th) Round terms for several of our existing licences which will allow us to further evaluate the unconventional resource potential of the retained areas.

The relinquishment of PEDL237 is in line with Egdon's strategy to focus on fewer, high potential areas."

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)

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 14th 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.

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 potential recoverable hydrocarbons 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).

This information is provided by RNS

The company news service from the London Stock Exchange

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July 04, 2016 02:00 ET (06:00 GMT)