Planning Permission Granted for Kirkleatham Gas Field Development

19 August 2009

Egdon Resources plc (AIM:EDR), the UK-based exploration and production company focused on the hydrocarbon-producing basins of onshore UK and Europe, is pleased to report that it has received planning approval for the Kirkleatham gas field development in PEDL 068 in North Yorkshire where Egdon holds a 20% interest and is the Operator.

On 13 August 2009, Redcar and Cleveland Borough Council granted planning consent for production from the existing Kirkleatham-4 well site, the construction of an underground pipeline to the Wilton site and for the drilling, testing and production for up to two additional wells at the site.

Following a detailed review of the most likely schedule for regulatory consents, procurement and construction of the project, the joint venture partners have agreed to move the target completion of the project from late winter 2009/10 to autumn 2010.  This will allow for construction during summer 2010 and ensure commissioning of the facilities will occur prior to the start of the 2010 winter gas season in October.  This will ensure that maximum revenues are realised from the project whilst enabling a more efficient use of cash resources during the procurement and construction phase.

Commenting on the project, Mark Abbott, Managing Director of Egdon, said:

“The award of planning consent for Kirkleatham is a key milestone and we are pleased the project had strong local support.  We now have a clear schedule to ensure gas sales for the start of the winter 2010 gas market where it is anticipated that revenues from the project will be maximised.  Work has already started on putting in place all the agreements, contracts and regulatory approvals to achieve this.”

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