Egdon Resources plc (AIM:EDR) notes the press release made today by UK Oil & Gas PLC (“UKOG”) the operator of PEDL143, where Egdon held a 18.4% interest.
In its release UKOG advised the following in respect of PEDL143;
“A detailed study examining the viability of drilling the A24 (formerly Holmwood) Portland prospect’s centre from selected sites outside the Surrey Hills Area of Outstanding Natural Beauty, each over 3 km from the target, concludes that the required long-reach/shallow target-depth wells are neither technically viable nor economically feasible. Consequently, UKOG and its partners have now relinquished their interests in the licence.”
Mark Abbott, Managing Director of Egdon Resources plc, said:
“The relinquishment is supported by Egdon, as a technically and commercially viable site to drill the A24 Prospect (formerly Holmwood) couldn’t be identified. It enables Egdon to focus its resources on the core near-term priorities; namely, moving to production at Wressle during this quarter, progressing drilling options at Biscathorpe and North Kelsey, and acquiring a marine 3D seismic survey over the Resolution and Endeavour gas discoveries during the coming period.”