StockMarketWire.com - Egdon Resources [LON:EDR] has reached agreement to acquire an additional 20% interest in Petroleum Exploration and Production Licence PEDL068 from DESS Energy Limited bringing the total interest to 68%.

Egdon is operator of PEDL068 which is located in the Cleveland Basin of North Yorkshire.

This transaction follows DESS's acquisition of Sterling Resources (UK)'s 47% interest in the licence.

As consideration for this acquisition, Egdon will bear DESS's retained 20% share of ongoing expenditure for the next six months and in addition will accept liability for DESS's 20% share of the existing abandonment liability for the Kirkleatham site and Kirkleatham-1 well, but not for any future works.

Egdon estimates that this transaction will add approximately 1.75 bcf of best estimate contingent and prospective conventional resources to its portfolio.

Under a separate transaction, DESS has also sold a 5% interest to existing PEDL068 partner Montrose Industries Limited.

The acquisition is subject to approval by the Oil and Gas Authority. On completion the interests in PEDL068 will be as follows:

Egdon Resources U.K. Limited 60.00%

DESS Energy Limited 22.00%

Yorkshire Exploration Limited 8.00%

Montrose Industries Limited 10.00%

Licence PEDL068, is located in the Cleveland Basin of North Yorkshire and contains the Kirkleatham gas field, which is shut-in pending the potential drilling of a side-track well to target an un-drained portion of the field up-dip from the existing producer well. Planning consent has recently been extended for Kirkleatham and allows for drilling and production from a further two wells at the site. The licence also contains the Westerdale/Ralph Cross gas discovery where planning consent is in place for an appraisal well. Exploration in PEDL068 to date has concentrated on Permian age limestone gas plays but the licence also contains prospectivity in deeper Carboniferous age sandstones.

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LGO Energy [LON:LGO] has started production from a new oil pay interval in well GY-277, the fourth of its planned heavy work-overs at the Goudron field in Trinidad.

LGO said 45 feet of perforations were added to the Mayaro Sandstone, at depths between 500 and 631 feet, in a reservoir interval that has previously not been completed for production.

As with well GY-673 in July, well GY-277 was recompleted using wireline perforating guns and as anticipated this interval in the shallow Mayaro Sandstone formation did not flow naturally to surface and the well has been placed on pump production. The well is still cleaning up and is currently producing at a rate of 34 barrels of oil per day ("bopd").

Goudron E&P Limited, LGO's operating subsidiary, has received agreement from BNP Paribas as announced on 14 June to deploy available local currency in operations such as GY-277 to maintain production.

A further five target wells have been approved by LGO management for recompletion over the next few months; GY-668, 288, 193, 240 and 282, at an average cost of approximately US$50,000 per well. Those funds are currently available to GEPL following a TT$5.2 million VAT rebate associated with the Company's 2015 drilling activities.

The group's second quarter 2016 production was an average of 562 bopd. A total of 51,121 barrels were produced, 39,903 barrels in Trinidad and the balance in Spain.

Stocks in Spain remain at a high level, approximately 10,000 barrels, as price negotiations continue with potential purchasers. Sales of Ayoluengo oil to the former Saint Gobain glass factory continue on a month by month basis with volumes for September now contracted.

Chief executive Neil Ritson said: "We are continuing with the workover activity previously planned and announced. In parallel locations are being prepared for infill drilling in the Mayaro Sandstone reservoir which holds approximately 65,000 barrels of very low risk and low cost oil production potential per infill well according to the recent Competent Persons Report prepared by Deloitte. It is now hoped to get infill drilling under way by the end of 2016."

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Europa Oil & Gas (Holdings) [LON:EOG] has issued detailed technical information on the recently awarded Licensing Option (LO) 16/22, offshore Ireland.

Europa has a 100% interest in, and is operator of, seven licences in the Atlantic basins offshore Ireland including LO 16/22, which covers 992sq km in the Padraig Basin.

Highlights

- Gross mean un-risked indicative resources in the range of 300-600 million barrels of oil equivalent

-Padraig Basin is a remnant Jurassic basin on the eastern margin of the Rockall Trough

- Most relevant analogue is the conjugate margin play offshore Newfoundland in the Flemish Pass Basin

- Good quality 1998 2-D seismic suggests structures of significant size

- Multiple leads mapped in water depths ranging from 800-2,000m in both Pre-rift and Syn-rift hydrocarbon plays

- Strategy to expedite exploration by securing a farm-in partner with which to reprocess historic 2-D seismic over LO 16/22 and to mature leads to drillable prospect status

Europa CEO Hugh Mackay said: Following Statoil's exploration success at the play-opening Bay du Nord oil discovery in the Flemish Pass basin offshore Newfoundland there is considerable industry interest in Flemish Pass analogues being found offshore west Ireland. Whilst most of the industry is currently focused on exploring for this play in the South Porcupine basin our restoration of the conjugate margin prior to Atlantic seafloor spreading suggests the possibility that the Padraig basin may be a better fit with the Flemish Pass basin.

"The potential of the Flemish Pass play in Ireland is currently being pioneered in the South Porcupine basin by the oil majors. If they achieve exploration success we expect there will be clear technical read across to, and potentially de-risking of, our Padraig licence and in due course this might encourage a second phase of drilling in the perched basins on the Rockall margin.

"Whilst the Padraig Basin play is currently at an early exploration stage and at the higher risk end of the exploration spectrum, we have a work programme to de-risk this evolving play. In particular we are hopeful that successful reprocessing of historic 2-D seismic might allow us to mature existing leads to drillable prospect status at comparatively low cost and without the necessity to acquire new seismic data."

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Empyrean [LON:EME] has confirmed that the first tranche of amounts held in escrow to secure the representation, warranty and indemnity obligations of the company under the purchase and sale agreement entered into with Carrier on 14 January has now been received.

The company has received US$2.519m which, as previously announced, comprises 50% of the US$6.15m held in escrow upon completion of the transaction (being 10% of the initial consideration paid by Carrier and equivalent to approximately £4.62 million), reduced for purchase price adjustments of US$0.111m and the deduction of withholding tax of 15% (US$0.445m).

The second tranche of the escrowed funds, which is due for release on or about 19 February 2017, being one year after closing of the transaction on 19 February 2016, is also expected to be subject to withholding tax of 15% and may be subject to further adjustments.

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Bowleven [LON:BLVN] bought back 192,948 ordinary shares on Friday at 26.00p apiece to be held in treasury.








At 4:07pm:

[LON:AUR] Aurum Mining PLC share price was 0p at 1p

[LON:BLVN] BowLeven PLC share price was +1.38p at 27.38p

[LON:BOR] Borders Southern Petroleum PLC share price was -0.01p at 1.63p

[LON:CHAR] Chariot Oil Gas Ltd share price was -0.27p at 5.9p

[LON:EDR] Egdon Resources PLC share price was 0p at 13.25p

[LON:EME] Empyrean Energy PLC share price was +0.25p at 8.5p

[LON:ENQ] EnQuest Plc share price was -1.12p at 29.38p

[LON:EOG] Europa Oil Gas Holdings PLC share price was +0.13p at 5p

[LON:GKP] Gulf Keystone Petroleum share price was +0.03p at 5.01p

[LON:GPX] Gulfsands Petroleum PLC share price was +0.01p at 3.13p

[LON:INDI] Indus Gas Ltd share price was -2.37p at 400.13p

[LON:LGO] LGO Energy PLC share price was 0p at 0.14p

[LON:PET] Petrel Resources PLC share price was 0p at 6.25p

[LON:RKH] Rockhopper Exploration PLC share price was -0.12p at 32.38p

[LON:RPT] Regal Petroleum PLC share price was 0p at 3p

[LON:XEL] Xcite Energy Ltd share price was -0.45p at 7.75p



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