Egdon Resources Gains Nine New UK Onshore Licenses

By Alex MacDonald

LONDON-U.K.-based oil and gas explorer Egdon Resources PLC (EDR.LN) said Monday it has secured nine new licenses in the U.K.'s 14th onshore oil and gas licensing round.

These new licenses cover a total of 18 blocks and part blocks or roughly 1,141 square kilometres (441 square miles) and are located in the East Midlands Petroleum Province and the Cleveland Basin. The licenses expand the company's acreage of conventional and unconventional resource opportunities.

"We are pleased to be formally issued with these new licences that were initially offered to the Company in August and December 2015," said Managing Director Mark Abbott. "The award of the licences strengthens Egdon's position in two of our core areas, the East Midlands and Cleveland Basins."

In the three new East Midlands, Gainsborough Trough licenses, Egdon will own a 15% stake while Total SA (TOT) will own 50% and IGas Energy PLC (IGAS.LN) will be the operator with a 35% holding.

In the other licenses, Egdon will own between a 17.5% to 100% stake in the licenses.

Egdon's shares were up 0.9% at 14.5 pence a share, resulting in a market capitalization of 32 million pounds or $41 million.

Write to Alex MacDonald at [e-mail]

(END) Dow Jones Newswires

October 03, 2016 04:38 ET (08:38 GMT)

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