Egdon has suspended its farm-in opportunity for licences P1929 and P2304 which contains the Resolution and Endeavour gas discoveries due to the signing of an exclusivity agreement with a large exploration and production company (yet to be named). Exclusivity has been granted subject to a definitive farm-out agreement or other legal agreements being entered into by 19 January 2020 and completion occurring on 19 April 2020. 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 has submitted a request to extend the licences which are due to expire at the end of November 2019. Egdon plans to shoot 3D during spring 2020 subject to licence extensions and 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.   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 has signed an exclusivity agreement with not-to-be-disclosed company for the farmout so-far whloy owned shallow water P2304 and P1929 licence which contains the Resolution gas discovery.