Egdon Resources Announces Changes to UK Licences

The oil and gas landscape is continually changing, and Egdon Resources is the latest exploration entity to flex its muscles. Earlier this month, the AIM-listed onshore oil and gas exploration and production company announced that the Oil and Gas Authority (OGA) had given the green light on a series of licence extensions. They also confirmed that the authority had approved a conversions of licences to new model terms.

The changes were spurred by a move that saw the OGA offer existing UK Onshore licence holders the option of migrating to14th Round terms. These permits allow licensees to nominate areas they would like retained, in exchange for supplementary work programmes. Egdon chose to take advantage of the option on four of its existing operated licences, as well as one non-operated licence. The group has also relinquished its PEDL237 license in the Wessex basin, on the grounds that resources would be better spent on its nearby Waddock Cross site.

Mark Abbott, Managing Director of Egdon Resources plc comments on the changes, asserting that the company is satisfied with the outcome.

“Following on from the recently announced extension of the Europa operated licence PEDL143 containing the Holmwood prospect, we are pleased to have also been allowed additional time to drill our exciting operated onshore oil prospects at North Kelsey and Biscathorpe, and the offshore “A Prospect” which Egdon estimates may contain recoverable reserves of approximately 160 billion ft. 3 of gas,” he says.

Cleveland Basin

Home to the ‘A Prospect,’ licence P1929 has been extended by two years, bringing its deadline to April 2019. This will allow Egdon to secure the permits needed to drill a new offshore well and assess a major gas discovery made in 1966.

East Midlands

Containing the drill-ready North Kelsey oil prospect, licensing for PEDL241 has been extended to June 30 2017. The same deadline has been secured for the Biscathorpe oil prospect, while PEDL201, 202 and 209 will now operate under the new 14th Round licence terms.

New England

Another site that will adopt the 14th Round licence terms, New England’s PEDL191 will continue operations, as planned.

“In addition we are pleased to have been able to adopt the new 14th Round terms for several of our existing licences which will allow us to further evaluate the unconventional resource potential of the retained areas,” comments Abbot.

As shown by the introduction of 14th Round terms, oil and gas regulations are continually transforming. ‘Impact of Tier 3 Program’ explores the effects of the latest Tier 3 requirements, as introduced by the U.S. Environmental Protection Agency (EPA). Ruling that sulfur levels in gasoline must be 10 ppm or lower, the tough new laws challenge refiners to produce higher quality products, as well as maximise operational efficiency.