Egdon Resources announced on 21 January 2020 that it has agreed a deal with Shell for the latter to farm-in to licences P1929 and P2304 which contain the Resolution and Endeavour gas discoveries. Under the terms of the deal Shell will acquire a 70% interest in the licences in return for funding 85% of the costs for the acquisition and processing of a 3D survey over the discoveries up to USD 5 million. Shell will also pay for all studies and costs included in a well investment decision on the licences. Completion of the deal is subject to regulatory approval.   In April 2019 Egdon announced the results of a Competent Person's Report (CPR) prepared by Schlumberger Oilfield UK Plc which stated that the Resolution gas discovery is estimated to contain Contingent mean Gas Resources of 231 Bcf with a P90 to P10 range of 389 Bcf. Egdon plans to shoot 3D during spring 2020 subject to a successful farm-out. Following this the plan would be to drill and test an appraisal well on Resolution prior to a potential field development. In an update on 27 November 2019 Egdon reported that the OGA has approved six month licence extensions to P1929 and P2304 until 31 May 2020. In return for the extension Egdon must demonstrate to the OGA that a farm-in agreement has been executed by 31 January 2020 and that by 31 March 2020 the OGA is satisfied that Egdon and partner(s) is on track to deliver a 3D seismic programme over both licences.   Resolution is a dip and fault closed structure defined on reprocessed 2D seismic. Resolution will be appraised with an offshore well because the well cost is comparable with an onshore to offshore well and has a lower delivery risk. Egdon will develop Resolution via offshore well head platformed linked via pipeline to an onshore gas processing facility. The main risk is thought to be the ability to produce gas from relatively tight carbonate. Total drilled well 41/18-2 in block 41/18 in 1966 and made a gas discovery which flowed 2.5 MMcf/d from Permian Hauptdolomit fractured carbonates.  Interest in licences P1929 and P2304 is held solely by Egdon Resources UK Ltd.   For further details please contact:  Martin Durham  Email: Martin.Durham@egdon-resources.com
Egdon Resources announced on 21 January 2020 that it has agreed a deal with Shell for the latter to farm-in to licences P1929 and P2304 which contain the Resolution and Endeavour gas discoveries.