Egdon Resources has acquired the Promote Licence P2304 (UKCS Block 41/24) from Arenite Petroleum and Europa Oil & Gas relating to an area in the UK Continental Shelf.
The newly acquired licence is located to the immediate south of Egdon’s P1929 licence, comprising UKCS Blocks 41/18 and 41/19 in offshore North Yorkshire, UK.
Egdon will reimburse Europa’s 2017 licence rental, OGA Levy and vendors’ legal costs totalling £15,000 under the deal, in addition to future staged payments subject to the successful completion of various potential exploration activities and certain production milestones.
Egdon Resources managing director Mark Abbott, said: “The licence contains a mapped extension of the Resolution gas accumulation and an additional proven gas discovery.
“We will now work to integrate our evaluation of the new licence into our detailed understanding of P1929 with a view to progressing appraisal of the proven gas resources in the combined area.”
Through the acquisition of the P2304 licence, Egdon expects to unlock additional prospectivity in deeper gas bearing carboniferous sandstones underlying the Zechstein reservoir sequences.
Europa Oil & Gas CEO Hugh Mackay said: “Today’s disposal is in line with our strategy to optimise the risk / reward trade-off across our onshore UK and offshore Ireland exploration portfolio.”
P2304 also contains a second gas discovery as indicated by past wells, which tested at rates of up to 34 million cubic feet of gas a day and 1,280bpd of condensate from the Plattendolomit.
The transaction has a potential value of £1.45m and is dependent on receipt of approval from the UK’s Oil and Gas Authority (OGA).