Egdon Snags New Exploration Permit Onshore France
Egdon Resources was awarded a new French exploration permit. The "Permis de Pontenx" (Pontenx Permit) was ratified on December 16, 2008 and published in the Official Journal on January 20, 2009.
Egdon will operate the permit with a 40% interest through its wholly owned subsidiary Egdon Resources (New Ventures) Ltd. The other partners in the joint venture group are Eagle Energy Limited (40%) and Nautical Petroleum plc (20%).
The Pontenx Permit is located on the southern margins of the Parentis Basin, an oil productive region on the Atlantic 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 permit area and the Lucats-Cabeil heavy oil producing field is also located just to the north of the permit. The main play within the permit is oil in Cretaceous age platform and reef carbonate reservoirs. The Pontenx Permit contains the abandoned Mimizan Nord heavy oil field and a number of high potential leads and prospects adjacent to or up-dip of wells with good oil shows and tests.
The permit covers an area of 313 square kilometers and has a four year initial term. The work program will be phased, with the initial two years comprising the reprocessing and interpretation of existing 2D seismic data, a review of the rejuvenation potential of the Mimizan Nord abandoned oil field and detailed reservoir studies. A second contingent phase will comprise the acquisition of new seismic data and the drilling of a well. The total financial commitment for the joint venture group over both phases will be €2.5 million.
Commenting on the permit award, Mark Abbott, Managing Director of Egdon, said, "With the formal award of Pontenx we now look forward to the commencement of the detailed evaluation of this highly prospective permit. Pontenx contains oil field rejuvenation, appraisal and exploration opportunities. This permit award is in line with our strategy of developing a high potential exploration portfolio as a platform for future growth with minimum near-term expenditure, whilst currently concentrating our resources on further developing our production and revenue streams. The Mimizan Nord abandoned oil field may present one such near-term production opportunity and its evaluation will be our initial priority."
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