Egdon has added cheaply to its acreage in its core UK area the East Midlands, it said June 12, buying a 50% interest in PEDL278 from Celtique Energie Petroleum and Investcan, winners of the licence in the 14th Round.
Island Gas (IGas) bought the other half, and the deal has approval of the regulator, the UK Oil & Gas Authority.
The licence contains the Kirk Smeaton Tight Gas Discovery (RTZ, 1985) and other conventional and unconventional prospectivity. This acquisition adds 4,695 net acres to Egdon's unconventional resources position which now amounts to a total net area of around 205,800 acres.
Egdon CEO Mark Abbott said he was pleased to be adding "a material holding in a licence containing the 1985 Kirk Smeaton Tight gas discovery and further prospectivity at minimal cost. This acquisition is consistent with our strategy of enhancing Egdon's position in core areas where we see significant oil and gas potential."
Commenting on the company's business April 11, Egdon chairman Philip Stevens said: "An independent evaluation of the net gas in place for our unconventional resources has given a figure of 50 trillion ft³, which shows a considerable increase over the last estimate made two years ago. Our conventional portfolio contains a number of very attractive prospects the value of which we expect to be able to realise in the next 12 to 18 months."
On May 19, Egdon announced the Environment Agency had approved the variation to the mining waste permit for the planned Wressle field development and associated operations, for which conventional drilling methods have been used.
IGas and Egdon are already partners in shale gas exploration blocks in the East Midlands, in which France's Total is the largest partner and where permits to drill without use of hydraulic fracturation were granted last year and fully confirmed, following a 'Section 106' notice, on May 25 2017 for a three year period by Nottinghamshire county council.
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