Update on farmout of interests in PEDL253 Biscathorpe

20 March 2018

Further to the announcement of 5 March 2018 Egdon Resources plc (AIM:EDR) is pleased to announce that it has signed a definitive Farm-out Agreement in respect to interests in PEDL253 to Union Jack Oil PLC (“UJO”, AIM: UJO) and Humber Oil & Gas Limited (“Humber”,private). PEDL253 is located in Lincolnshire and contains the Biscathorpe Prospect, scheduled for drilling around mid-2018.

Under the terms already announced, UJO and Humber will each acquire 6% of Egdon’s interest in PEDL253 by paying their pro-rata share of the Biscathorpe-2 well cost plus an additional £10,000 per percentage point interest acquired. This is equivalent to a farm-in with a 1.36 times promote at the estimated well cost. UJO and Humber will also each acquire 4% of Montrose Industries Limited’s interest in PEDL253 under the same terms.

The transaction remains subject approval from the Oil and Gas Authority. On completion the interests in PEDL253 will become:


Egdon Resources U.K. Limited (Operator)      40.80% (29.31% share of well cost*)

Montrose Industries Limited.                             27.20% (19.54% share of well cost*)

Union Jack Oil Plc                                                 22.00% (37.57% share of well cost*)

Humber Oil & Gas Limited                                  10.00 % (13.57% share of well cost*)

* at the current estimated well cost