Egdon acquires interest in East Midlands licence

Egdon Resources announced the completion of the acquisition of an interest in a licence in the company's East Midlands core area on Monday.

The AIM-traded firm said it was acquiring a 50% interest in PEDL278 - UK National Grid Block SE51b 0 from Celtique Energie Petroleum and Investcan, who were originally awarded the licence in the 14th Round.

Egdon and Island Gas were each acquiring a 50% interest in the licence from Celtique and Investcan for a nominal cash consideration.

The acquisition had already been approved by the Oil and Gas Authority.

Egdon said the licence contained the Kirk Smeaton tight gas discovery and other conventional and unconventional prospectivity.

The acquisition added 4,695 net acres to Egdon's unconventional resources position which now amounted to a total net area of around 205,800 acres.

“We are pleased to acquire a material holding in a licence containing the 1985 Kirk Smeaton tight gas discovery and further prospectivity at minimal cost,” said managing director Mark Abbott.

“This acquisition is consistent with our strategy of enhancing Egdon's position in core areas where we see significant oil and gas potential.”