Egdon Resources plc (LON:EDR), the UK Energy Company, has advised that the North Sea Transition Authority has approved the transfer of operatorship of licence PEDL343 from Egdon Resources U.K. Limited to Europa Oil & Gas (Holdings) plc. The transfer is part of a process of ensuring that Egdon prioritises core projects whilst ensuring other potentially high value opportunities are progressed at pace.
We also note the release made today by Europa in relation to this which states the following;
“Europa Oil & Gas (Holdings) plc, the AIM traded UK and Ireland focused oil and gas exploration, development, and production company, is pleased to announce that it has assumed operatorship of licence PEDL343, which holds the Cloughton gas discovery.
Operatorship of the licence was transferred from Egdon Resources U.K. Limited (“Egdon”) to Europa and approved by the North Sea Transition Authority, the industry regulator, with effect from 27 July 2023. The partners in PEDL343 are Europa (40 per cent), Egdon (40 per cent) and Petrichor (20 per cent).
The Cloughton field was discovered in 1986 and encountered gas throughout the Carboniferous section. The well tested at rates of up to 40,000 scf/day on natural flow, however with the right completion and production optimisation techniques, the Company believes that a well could flow at 6 mmscf/day. The gas is good quality sweet gas with >98% methane and ethane.
The discovery well encountered 60 metres of Carboniferous net sandstone reservoir with high gas saturations. Given the large areal closure and net sand present within the well there is a large volume of gas in place that has already been discovered. Cloughton is therefore a gas appraisal opportunity with the critical challenge being to obtain commercial flowrates from future production testing operations. A location for an appraisal well pad has been identified and following successful testing operations, the field would be monetised by connecting to the nearby gas grid. Such developments remain subject to securing necessary permits and approvals.”
Commenting Mark Abbott, Managing Director of Egdon, said;
“This transfer of operatorship allows Egdon to maintain a clear focus on our near-term priority projects whilst also enabling Europa to apply its resources to progressing the Cloughton prospect to potential appraisal drilling operations as quickly as possible.”
