Independent onshore focused oil and gas exploration firm Egdon Resources has entered farm-out exclusivity agreement with regards to UK offshore licences P1929 and P2304.
The development was provided in an update on the farm-out process with respect to the Resolution and Endeavour gas discoveries in licences P1929 and P2304. Egdon Resources’ subsidiary Egdon Resources UK (ERUK) operates and owns 100% interest in both the licences.
The agreement has been signed with an undisclosed international exploration and production company (referred to as counterparty here).
Egdon noted that exclusivity has been granted to the counterparty, which is based on a definitive farm out agreement or other definitive legal agreement(s) expected on 19 January 2020 and slated for completion on 19 April 2020.
Egdon Resources managing director Mark Abbott said: “We are delighted to have agreed exclusivity with a large internationally recognised exploration and production company as our preferred partner for Resolution and Endeavour.
“In our view, the calibre of the proposed partner reflects the upside potential associated with these assets and validates our strategy to add them to our portfolio.
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“This represents a major step forward for these projects and results from the significant work undertaken by the team over a prolonged period.”
In April 2019, Egdon announced the results of a Competent Person’s Report (CPR) prepared by Schlumberger Oilfield UK in relation to the Resolution gas discovery. Egdon mentioned that Schlumberger has made independent estimates of Contingent Gas Resources of 231bcf, which can be attributed to the Zechstein reservoir sequences.
Egdon has previously submitted a request to the Oil and Gas Authority (OGA) for an extension to P1929 and P2304. These licences are set to expire by the end of November 2019 and the company expects to receive confirmation from the OGA on extension.
In December 2017, Egdon Resources 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.