Egdon Resources has exercised its exploration option and farm-in agreement with Scottish Power Generation (SPG) to earn an interest in two UK licenses.
The agreement gave Egdon a 12-month option period to drill on the PL161 in Lincolnshire or the PL162 license in South Yorkshire.
Egdon has exercised its option to drill on the licenses and will finance all of the drilling and evaluation of one well to the point of discovery.
The company will earn a 50% inteWe are very encouraged by the results of our evaluation of PL161 and PL162, both in terms of conventional and unconventional prospectivityrest in the license area and become the operator. Initial work will feature new 2D acquisition to finalise the location for the option well.
Egdon Resources managing director Mark Abbott said: ", and look forward to working with SPG in exploring these exciting plays.
"We expect to see a play opening well operated by our partner IGas on neighbouring acreage in H2 2015, which should aid in de-risking the unconventional plays on PL161 and PL162.
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By GlobalData"The exercise of this option is consistent with our strategy of increasing our exposure to shale-gas prospective acreage in our Gainsborough Trough core area."
In a separate statement, Egdon said it expects to mobilise its operations to the Wressle-1 site on 5 January 2015 with testing operations anticipated to start shortly afterwards.
