Egdon to be offered blocks in the 14th Onshore Oil and Gas Licensing Round first tranche

Egdon Resources plc (AIM:EDR) notes that the Oil and Gas Authority (“OGA”) has today announced the blocks to be offered in the first tranche of the 14th Onshore Oil and Gas Licensing Round, which closed on 28^th October 2014.

The management of Egdon are pleased to announce that the Company has been advised it will be offered a total of seven blocks or part blocks in this first tranche. The blocks are located in the East Midlands Petroleum Province and expand the Company’s acreage and opportunity base within one of its core areas of activity. The blocks to be offered provide a mix of new conventional, shale-gas and tight-oil opportunities.

In the Gainsborough Trough, the Company is to be offered a 15% interest in Blocks SE41e, SK49, SK89e, SK88b and SK87c. These blocks will be in a joint venture with IGas (35% and operator) and Total E&P UK Limited (50%), building on the Company’s existing relationships within this area.

In the Widmerpool Basin, Egdon will be offered an 18.75% operated interest in Blocks SK52a and SK53 in a joint venture with Hutton Energy Limited (25%), Coronation (Oil and Gas) Limited (25%), Celtique Energie Petroleum Limited (18.75%) and Petrichor Energy UK Limited (12.5%).

Egdon also applied for a number of additional blocks in other areas and notes that a second tranche of 14^th round offers are expected to be made at a later date after the conclusion of a consultation under the Conservation of Habitats and Species Regulations 2010, which has today been announced by OGA.

Commenting on the offers, Mark Abbott Managing Director of Egdon Resources said;

“We are delighted to have been advised that we will be offered a number of high quality blocks in what has been a very competitive licensing round. The new blocks provide significant opportunities for growth and will be excellent additions to Egdon’s UK portfolio of interests. As an established operator with a strong licence holding we are also encouraged by the high level of interest shown in the onshore UK. We now await the results of the second tranche of offers with interest.”