Government Moratorium on Hydraulic Fracturing

RNS Number : 0653S

Egdon Resources PLC

04 November 2019

 

4 November 2019

EGDON RESOURCES PLC

("Egdon" or "the Company")

Government Moratorium on Hydraulic Fracturing for shale-gas

Egdon Resources plc (AIM:EDR) notes the announcement by government that it will introduce a temporary moratorium on hydraulic fracturing for shale gas.

Over the last 6 years Egdon has built a significant acreage position in UK unconventional resources focused on the Gainsborough Trough in Eastern England. The results from the Springs Road-1 well  drilled earlier this year, have shown the potential for a world class gas resource in this basin, with analysis indicating gas in place of 640 billion cubic feet of gas per square mile. Each basin and site is different and the Gainsborough Trough is characterised by its simple structure and limited faulting.

We note the comment made by Oil and Gas Authority (OGA) Director of Regulation Tom Wheeler who stated that "the OGA believes that further detailed geomechanical analysis would be needed before we could evaluate with confidence whether hydraulic fracturing could resume in the Fylde, or elsewhere, consistent with the Government's policy aims". Egdon along with the rest of the industry is fully  committed to working closely with the OGA and other regulators to demonstrate that we can operate safely and in an environmentally responsible manner, and we are confident of doing so.

We also reiterate the comments of Ken Cronin, Chief Executive of UK Onshore Oil and Gas, the industry body in his response to the announcement;

 "Since shale gas exploration commenced in England we have confirmed a world-class resource. Flow testing and core sampling across Lancashire and North Nottinghamshire show that our high-quality indigenous gas can reach the surface, leaving the UK with no excuse to continue importing overseas gas that generates double the emissions and provides British workers, businesses and communities with no economic benefit.

"As the Committee on Climate Change has stated, there will be a significant need for natural gas in 2050, approximately 70% of our current consumption, to meet our future demand for hydrogen.

"The Committee also reiterated in their Net Zero report something any climate change conscious Government should pay heed to: it is essential that we do not simply offshore our emissions - and environmental responsibilities - to other countries."

 Mark Abbott, Managing Director of Egdon said;

Whilst growth of our unconventional resources asset base has formed an important and successful part of Egdon's strategy over recent years, it should be remembered that Egdon also has a broad range of conventional oil and gas assets within its diverse portfolio. We expect numerous catalysts across the conventional portfolio in the coming months, including further positive developments relating to today's announcement of entering an exclusivity agreement with respect to a farmout of the offshore Resolution and Endeavour gas discoveries with a large internationally recognised exploration and production company.

We will now take some time to review the detail of the OGA report and the government announcement of a temporary moratorium and its implications for our business before reporting to shareholders in due course.

My immediate focus is on presenting our case to the Planning Inspector at the Public Inquiry for the Wressle oil field development which commences tomorrow (5 November 2019) in Scunthorpe and is scheduled to last up to six days.

For further information please contact:and

Egdon Resources plc

Mark Abbott / Martin Durham                                                      01256 702 292

Buchanan

Ben Romney, Chris Judd                                                            020 7466 5000

Nominated Adviser and Joint Broker - Cantor Fitzgerald Europe                  

David Porter/ Rick Thompson (Corporate Finance)                         020 7894 7000

Caspar Shand Kydd (Sales)

Joint Broker - VSA Capital Limited

Andrew Monk (Corporate Broking)                                               020 3005 5000

Andrew Raca (Corporate Finance)

Notes to Editors:

Egdon Resources plc (LSE: EDR) is an established UK-based exploration and production company focused on onshore exploration and production in the hydrocarbon-producing basins of the UK. 

Egdon holds interests in 44 licences in the UK and has an active programme of exploration, appraisal  and development within its portfolio of oil and gas assets.  Egdon is an approved operator in the UK.  Egdon was formed in 1997 and listed on AIM in December 2004.

Qualified Person Review

In accordance with the AIM Rules - Note for Mining and Oil and Gas Companies, this release has been reviewed by Mark Abbott, Managing Director of Egdon, who is a geoscientist with over 30 years' experience and is a member of the Petroleum Exploration Society of Great Britain and a Fellow of the Geological Society.  Mr Abbott has consented to the inclusion of the technical information in this release in the form and context in which it appears.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). Upon the publication of this announcement via Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.

 

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