UK-focused oil firm Egdon Resources has acquired 100% interest in UK North Sea Promote Licence P2304 (UKCS Block 41/24), containing part of the the Resolute gas discovery, through a deal with two other firms.
Egdon acquired 50% in the license from Arenite Petroleum and Irish offshore focused firm Europa Oil & Gas.
P2304 is to the immediate south of Egdon’s 100%-owned license P1929 (UKCS Blocks 41/18 and 41/19) off North Yorkshire, which contains the 1966 Resolution gas discovery.
Egdon says the Resolution discovery structural closure extends south from P1929 into P2304. It says the also contains a second gas discovery, drilled in 1969 and 1981 by Total, and by Conoco in 1993, with a well testing at rates of up to 34 MMcf/d and 1280 b/d of condensate.
P2304 also contains prospectivity in deeper gas-bearing Carboniferous sandstones underlying the proven Zechstein reservoir sequences, says Egdon.
P2304 was awarded to Europa and Arenite as a Promote Licence in the UK Offshore 28th Licensing Round. The regulator, the Oil and Gas Authority, has agreed to extend the initial license term until 1 December 2018.
Egdon's cost will be reimbursement of the 2017 license rental fee, OGA Levy and vendors’ legal costs (ca. £15,000 in total) and future staged payments based on the successful completion of various potential exploration activities and/or on reaching certain production milestones.
Egdon's managing director Mark Abbott says: "We will now work to integrate our evaluation of the new licence into our detailed understanding of P1929 with a view to progressing appraisal of the proven gas resources in the combined area.”
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