Egdon Resources has acquired Yorkshire Exploration, which holds an 8% interest in petroleum exploration and production Licence PEDL068 in North Yorkshire and Cleveland in the Cleveland Basin.
Yorkshire Exploration is owned and controlled by John Rix, who was a non-executive director of Egdon until late 2011.
Egdon operates PEDL068 with a 40% interest. The licence features the Kirkleatham gas field which is shut-in pending the potential drilling of a side-track well to target an undrained part of the field up-dip from the existing producer well.
The licence also features the Westerdale/Ralph Cross gas discovery where planning approval is in place for an appraisal well, with drilling expected to start in 2015/2016.
Exploration in PEDL068 has to date focused on conventional Permian age carbonate gas plays but the licence is also expected to have other conventional and unconventional prospectivity.
The transaction is expected to add around 0.70bcf of best estimate contingent and prospective conventional resources to Egdon’s resource inventory.
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By GlobalDataEgdon Resources managing director Mark Abbott said: "We are pleased to have completed this acquisition which adds to our existing interest in PEDL068 and adds incremental conventional resources and other prospectivity to the Company."
Sterling Resources (UK) and Montrose Industries hold 47% and 5% interests in PEDL068 licence.
