Egdon Resources plc has signed a conditional agreement to acquire Aurora Production (UK) Ltd which holds interests in Waddock Cross and Avington oil fields.
REJUVENATE
Aurora holds an 18.75% interest in the Edgon-operated licence PL090 containing Waddock Cross in Dorset.
It also owns an 8.33% interest in the IGas Energy-operated licence PEDL070 holding Avington in Hampshire.
Egdon estimates that the deal for both licences will add 0.614 million barrels of best estimate contingent and prospective resources of oil to its inventory.
The company’s existing 55% operated interest in PL090 will increase to 73.75% on completion of the transaction.
Egdon will also increase its interest in the remaining part of PL090 from 42.50% to 56.04%, excluding the Waddock Cross oil field which is currently shut-in.
“Independent reservoir modelling has shown that a new horizontal well on the field could yield commercial oil production (500-800 bopd),” said the company.
“Given the significant mean in-place oil volume of c. 57 million barrels, this asset has been high graded by Egdon for redevelopment.”
Egdon will increase its holding from 28% to 36.33% in Avington which is also shut-in but has approval to restart production.
The company plans to redevelop the field during 2023 with longer term plans to include establishing on-site water handling facilities.
“Both assets have active plans in place to rejuvenate oil production,” added managing director Mark Abbott.
“The acquisition therefore adds potential for near-term incremental production, adds to our resource base and delivers substantial tax losses that may be utilised to offset future taxes.”
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