Edgon to farm out further PEDL241 interest to Union Jack Oil

Egdon Resources Plc has agreed to farmout a 30% interest in onshore UK licence PEDL241 to Union Jack Oil Plc and to jointly pursue a farmout for drilling of the North Kelsey-1 exploration well.

Subject to a successful farm-out process, North Kelsey-1 is expected to be drilled in 2021.

North Kelsey is a drill ready conventional oil prospect along trend from and analogous to the Wressle oil development 15 km to the north-west.

It has been mapped from 3D seismic data to have potential for oil in up to four stacked conventional Carboniferous reservoir targets.

Egdon estimates prospective resources of 4.66-8.47 million bbl, with a mean resource volume of 6.47 million bbl.

In September, the existing planning consent for drilling North Kelsey-1 was extended to the 31^st December 2021 by the Lincoln County Council. Requisite permits for drilling have also been received from the Environment Agency.

Under the terms of the agreement, Union Jack will acquire the further 30% interest for cash consideration of £100,000 with the previous farm-in obligations terminating.

Upon completion, subject to Oil and Gas Authority consent, Egdon will retain operatorship and a 50% interest. Union Jack Oil would hold the remaining 50%.

Source: Oil & Gas Journal