The Directors of Egdon Resources plc have provided an update on two license applications in France made by its wholly owned subsidiary, Egdon Resources (New Ventures) Limited.
Egdon has been advised that no competing applications were received for the Gex Permit during the 90 day competition period which ended on August 14, 2008 following publication of the application in the Journal of the European Union. As such the application will now proceed to the final stages of approval through the French system with formal award expected in late 2008 or early 2009.
The Gex Permit, which covers an area of 932 square kilometers, is located in eastern France adjacent to the Swiss border close to Geneva. The permit is located in the Jura-Molasse Basin. There are two main plays within the area; oil in shallow Oligocence age sandstones and oil and gas in older Mesozoic reservoirs. Oil has been described from surface seeps which were historically mined within the region and also in a number of shallow cored boreholes drilled within the area. In addition oil and gas have been encountered in the Mesozoic section in wells drilled in and around the licence area. A number of surface anticlines are developed within the licence area and will be the focus for exploration of the Oligocence play. A large lead has also been identified in the Triassic.
The Gex Permit will have a five year duration and the initial two year work program will comprise the reprocessing and interpretation of the existing seismic data and detailed geological studies.
Egdon has also provided an update on its Pontenx Permit application in South West France. The Pontenx permit application was subject to a competitive application during the 90 day period, which closed on March 19, 2008. Egdon has now reached agreement with the French authorities to split the application area between the two competing parties and the proposal is due to be considered by the French General Council of Mines during September. Assuming ratification, formal award of the licence will follow later in 2008 or early 2009.
The Pontenx Permit is located on the southern margins of the Parentis Basin, an oil productive region on the west coast of France, to the south of Bordeaux. France's largest onshore oil field, Parentis, is located some 10 kilometers to the north of the license area. The Lucats-Cabeil heavy oil producing field is also located just to the north of the license.
The main play within the Pontenx Permit is oil in Cretaceous age platform and reef carbonate reservoirs. The Pontenx Permit will cover an area of 313 square kilometers against the original application area of 387 square kilometers. The license contains the abandoned Mimizan Nord heavy oil field, and a number of high potential prospects adjacent to or up-dip of wells with good oil shows and tests.
The license will have a four year term and the initial two year work program will comprise the reprocessing and interpretation of existing seismic data, a review of the rejuvenation potential of the Mimizan Nord abandoned oil field and detailed geological studies.
Egdon will be Operator of both permits with a 40% interest. The partners in both permits are Eagle Energy Limited (40%) and Nautical Petroleum Limited (20%).
Commenting on the new licences, Mark Abbott, Managing Director of Egdon, said, "Egdon has identified France as a target for potential growth and these two new licenses represent excellent progress within our business development strategy. These highly prospective licences contain a good mix of field rejuvenation, appraisal and exploration opportunities which complement our existing French license.
"We now look forward to the conclusion of the formal process of licence award and commencement of a detailed phase of prospect evaluation. Egdon will also continue to review further opportunities in France and we expect to make further applications over the coming months as we look to further strengthen our acreage position and opportunity base.”
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