Egdon Resources PLC Acquisition of interest Wressle & Broughton North (0958Q)

TIDMEDR

RNS Number : 0958Q

Egdon Resources PLC

04 June 2018

4 June 2018

EGDON RESOURCES PLC

("Egdon" or "the Company")

Acquisition of additional interest in Wressle and Broughton North

Egdon Resources plc (AIM:EDR) is pleased to announce the acquisition of an additional 5% interest in PEDL180 and PEDL182, which contain the Egdon operated Wressle oil discovery and Broughton North Prospect, from Celtique Energie Petroleum Limited.

Under the terms of the agreement Egdon will acquire an additional 5% interest in PEDL180 and PEDL182 from Celtique Energie Petroleum Limited for a deferred cash consideration of GBP0.417m payable on commencement of production ("First Oil"). The effective date for the transaction is 1 January 2018.

Union Jack Oil PLC ("UJO", AIM: UJO) and Humber Oil & Gas Limited ("Humber", private) will each also acquire 12.50% in both PEDL180 and PEDL182 from Celtique Energie Petroleum Limited on the same terms under separate deals.

Egdon will shortly submit a new planning application for the Wressle development which has the benefit of information from additional site investigation boreholes and two deeper cored boreholes to ensure it addresses in detail the matters highlighted by the Inspector in his Decision Notice to refuse the planning appeals in January 2018. An application to extend the current planning consent for the Wressle site was submitted on 13 April 2018.

The transaction is subject to approval from the Oil and Gas Authority. On completion, the interests in PEDL180 and 182 will become

 
 Egdon Resources U.K. Limited (Operator)    30.00% 
 Europa Oil and Gas plc                     30.00% 
 Union Jack Oil Plc                         27.50% 
 Humber Oil & Gas Limited                   12.50% 
 

Mark Abbott, Managing Director of Egdon Resources plc, said:

"Today's transaction underlines our confidence in the quality and deliverability of the Wressle project.

We have been able to add to our existing material interest in the licences with the consideration deferred to the point of revenue generation from the Wressle field. The transaction emphasises our strategy to achieve a balanced business comprised of revenue generating conventional assets to complement the high-impact UK unconventional licences within our portfolio."

For further information please contact:

 
 Egdon Resources plc 
  Mark Abbott                                01256 702 292 
Buchanan 
 Ben Romney, Anna Michniewicz                020 7466 5000 
Nominated Adviser and Broker - Cantor 
 Fitzgerald Europe 
 David Porter/Nick Tulloch (Corporate 
 Finance) 
 Caspar Shand Kydd / Alex Pollen (Sales)     020 7894 7000 
Joint Broker - VSA Capital Limited 
 Andrew Monk (Corporate Broking) 
 Andrew Raca (Corporate Finance)             020 3005 5000 
 

Notes to Editors:

Wressle:

The Wressle-1 well was drilled in 2014 and tested in 2015. The Wressle-1 well has flowed oil and gas from three separate reservoirs, the Ashover Grit, the Wingfield Flags and the Penistone Flags. This totalled 710 barrels of oil equivalent per day from all zones. In September 2016, a Competent Person's Report made independent estimates of Reserves and Contingent and Prospective oil and gas Resources for the Wressle discovery of 2.15 million stock tank barrels classified as discovered (2P+2C). Further information can be found at our Wressle Oil and Gas Discovery page http://www.egdon-resources.com/home/project-sites/wressle/

Broughton North

The Broughton North prospect has gross unrisked Prospective Resources of 0.51 million stock tank barrels of oil and 0.51 bcf of gas in aggregate across two reservoir sands: Ashover Grit and Penistone Flags. Broughton North is a drill-ready prospect, subject to obtaining planning permission. The Broughton North prospect benefits from the results of the Wressle-1 oil and gas discovery and the Broughton-B1 exploration well that significantly reduces the geological risk over PEDL180 and PEDL182 resulting in a high Geological Chance of Success with a range assigned by the Competent Person of 40% to 49%. Mapping of the Broughton North prospect also benefits from the same high quality 3D seismic data as was used to identify the Wressle-1 oil and gas discovery.

Wressle Planning history

On 11 January 2017, North Lincolnshire Council refused planning consent for the original application for the development of the Wressle Oil Field at Lodge Farm, Wressle, North Lincolnshire.

On 7 February 2017, Egdon announced that it would both appeal the decision of 11 January 2017 and in parallel submit a new Planning Application for the Wressle development which would include even more detailed information to address the specific concerns outlined by North Lincolnshire Council in their refusal.

On 11 April 2017, Egdon submitted an appeal against North Lincolnshire Council's decision to refuse planning consent.

On 28 April 2017, Egdon submitted a new application for the Wressle Development including additional detailed information to address the specific concerns raised by North Lincolnshire Council in its 11 January 2017 decision to refuse the original application for the development of the Wressle Oil Field.

On 19 May 2017, Egdon announced the issue by the Environment Agency of the variation to the Mining Waste Permit for the planned Wressle field development and associated operations.

On 3 July 2017, the new planning application was also refused. The variation of the existing planning for the site requesting a twelve month extension was also refused at the same meeting.

During November 2017, a planning inquiry was held to consider the two appeals for development approval and the appeal of the variation of the existing planning for the site. On 5 January 2018, we announced that the Inspector had rejected the appeals by Egdon against the two planning refusals by North Lincolnshire County Council's Planning Committee. However, the Planning Inspectorate did uphold Egdon's appeal against the decision to refuse the application to retain the existing planning for the well site, which is was retained until the 28 April 2018.

A new application to extend the current planning consent was submitted on 13 April 2018.

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 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.

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 news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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June 04, 2018 02:00 ET (06:00 GMT)