Egdon Farms-out PEDL143 to UK Oil & Gas

Egdon reached a deal to farm-out the Weald Basin (PEDL143) to UK Oil & Gas Investments (UKOG).

‘PEDL143 contains the Holmwood Prospect, which the PEDL143 partnership plan to test with the Holmwood-1 exploration well. Regulatory consent to drill the well is currently awaiting the outcome of a planning inquiry held by the Planning Inspectorate following appeal by the license group.  The operator of PEDL143 is Europa Oil & Gas Limited (Europa)’ reads a note released on Monday, referring to the licence in the United Kingdom. 

Under the terms of the agreement, UKOG will pay a 40% share of the Holmwood-1 drilling costs in order to acquire a 20% working interest in PEDL143 from Egdon. UKOG’s share of well costs will be capped at £1.2 million net to UKOG. 

“We are pleased to have concluded this deal with UKOG within their core business area.  The transaction means that should planning consent be granted for the well, Egdon will retain a material interest in the Holmwood Prospect whilst minimising the Company’s financial exposure and managing our technical risk while evaluating the prospect’s potentially significant prospective resource” Mark Abbott, Managing Director of Egdon Resources, commented. 

Last week, Egdon Resources announced the commencement of an Extended Well Test at the Wressle-1 oil and gas discovery in licence PEDL180, located to the east of Scunthorpe, where Egdon operates with a 25% interest. Waiting for its shale projects to speed up, the company is focusing on conventional projects.