AIM listed Egdon Resources has advised that further to the announcement of 7 August 2023, Egdon, York Energy (UK) Holdings and Cuadrilla North Cleveland have executed a fully termed agreement to enable a farm-in and equalisation of interests between the PL81 and PEDL347 licences.
Under the terms of the Agreement Egdon, York and Cuadrilla shall procure that legal and beneficial interests in both PL081 and PEDL347 are assigned between them so that both licences are held Egdon 52.5%, Cuadrilla 25% and York 22.5%. Egdon would be appointed as the operator of the Licences. Following recovery of Egdon's costs of the farm-in it will assign a further 2.5% interest in both the Licences to York.
As consideration Egdon will pay 100% of the costs associated with the planning, drilling, logging, and either short term testing and completion or plugging and abandonment of a well to optimally test the Weaverthorpe Prospect within the Licences. Egdon will have a period of three years to complete the Work Programme.
The assignment of the Licence interests to Egdon, York and Cuadrilla and the transfer of operatorship to Egdon will be subject to the usual NSTA approvals.
The PL081 and PEDL347 licences contain the Weaverthorpe Prospect which is a shallow (c. 1000 metres) Sherwood Sandstone (Triassic) conventional prospect located immediately up-dip of interpreted gas pay in the Fordon-2 well (drilled by BP in 1974). Egdon's technical and operational studies have confirmed Weaverthorpe as a material, commercially viable prospect.
Commenting on the Agreement Mark Abbott, Managing Director of Egdon, said:
'I am pleased we have been able to finalise this Agreement in a timely fashion and now look forward to working with York, Cuadrilla and our wider stakeholders on delivering the planned Work Programme.'
Source: Egdon Resources
