Egdon Resources (LON: EDR) has snapped up an extra 20% of an onshore licence in north Yorkshire from DESS Energy.
Egdon, a Hampshire-based exploration and production company, will hold 68% of the PEDL068 licence if the deal is approved by the Oil and Gas Authority.
Egdon will have 60% while its wholly-owned subsidiary Yorkshire Exploration will have 8%.
The transaction will add about 1.75 billion cubic feet of best estimate contingent and prospective conventional resources to Egdon’s portfolio.
Mark Abbott, managing director of Egdon, said: “This acquisition builds on our existing interest in PEDL068, adding additional resource potential to the company at low cost and complements our pending award of surrounding licence PEDL259 in the 14th Onshore Licensing Round in what was a highly sought after region.”
PEDL068 is located in the Cleveland Basin of north Yorkshire and contains the Kirkleatham gas field, which is shut-in pending the potential drilling of a side-track well to target an undrained portion of the field up-dip from the existing producer well.
Planning consent has recently been extended for Kirkleatham and allows for drilling and production from a further two wells at the site, an Egdon spokesperson said.
The licence also contains the Westerdale/Ralph Cross gas discovery where planning consent is in place for an appraisal well.
Egdon, set up in 1997, currently holds interests in 36 licences in the UK and France.
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