Egdon Resources Plc has acquired a gas license for offshore North Yorkshire, the company said on Dec. 4.
Egdon Resources Plc holds 100% interest in the license, P2304 (UKCS Block 41/24), from Arenite Petroleum Ltd. and Europa Oil & Gas Ltd.
P2304 is located to the immediate south of Egdon’s 100% owned license P1929 (UKCS Blocks 41/18 and 41/19) offshore North Yorkshire, which contains the 1966 Resolution gas discovery.
The consideration comprises the immediate reimbursement of the 2017 license rental, the Oil and Gas Authority (OGA) levy and vendors’ legal costs—£15,000 in total (US$20,000)—and future staged payments contingent on the successful completion of various potential exploration activities and/or on reaching certain production milestones.
The Resolution discovery structural closure is mapped by Egdon as extending southwards from P1929 into P2304 and the license also contains a second gas discovery confirmed by Total SA’s (NYSE: TOT) 41/24A-1 and 41/24A-2 wells, and ConocoPhillips’ (NYSE: COP) 41/24-3 well, which tested at rates of up to 34 million cubic feet of gas per day and 1,280 barrels per day of condensate from the Plattendolomit, a Zechstein carbonate unit slightly younger than the Hauptdolomit reservoir tested in the Resolution discovery well.
As with P1929, P2304 contains additional prospects in deeper gas bearing Carboniferous sandstones underlying the proven Zechstein reservoir sequences.
P2304 was awarded to Europa and Arenite as a promote license in the UK Offshore 28th licensing round. The OGA has agreed to extend the initial term of the license until December 1, 2018.
“We are pleased to have acquired this highly prospective acreage at a nominal up-front consideration. The license contains a mapped extension of the Resolution gas accumulation and an additional proven gas discovery,” Mark Abbott, Egdon’s managing director, said.
“We will now work to integrate our evaluation of the new license into our detailed understanding of P1929 with a view to progressing appraisal of the proven gas resources in the combined area.”