UKCS: Edgon possibly found a buyerEdgon’s acreage in the Cleveland Basin North East UK. Source: Edgon Resources

UKCS: Edgon possibly found a buyer

Egdon Resources U.K, signs an exclusivity agreement with a large internationally E&P Company concerning the Resolution (P1929) and Endeavour (P2304 ) gas discoveries farm-out process.

Given the exclusivity arrangement, discussions and negotiations with other parties have been suspended, and the data room closed while the agreement is in place. But no assurance can be provided that a commercial transaction will ultimately be concluded with the Counterparty.

In April 2019, Schlumberger Oilfield UK PLC  prepared a Competent Person’s Report (“CPR”) in relation to the Resolution gas discovery.

Schlumberger has made independent estimates of mean Contingent Gas Resources of 41 MMboe with a P90 to P10 range of 18 to 69 MMboe, that can be attributed to the Upper Permian Zechstein carbonate reservoir in the 1966 gas discovery made by Total in well 41/18-2 (UK).

Seismic section over Resolution gas discovery. Source: Edgon Resources

The Endeavour discovery (Permian Plattendolomit, Zechstein Gp) is a potential satellite development to Resolution with mean Prospective Resources of 3.2 MMboe (Egdon’s estimate). Besides, exploration upside exists in the underlying Carboniferous (tight gas).

Marine 3D acquisition is planned for Spring 2020 window, subject to securing a farm-out partner. This 3D would also extend over the Endeavour gas discovery.

Planned 3D seismic survey over P1929 and P2304 licenses. Source: Edgon Resources

Edgon intends to drill and flow test an appraisal well to confirm the gas resources from the Resolution discovery before potential field development.

Press release