Egdon Resources said it was “encouraged” by Shell’s decision to drill a nearby discovery at two of its southern North Sea assets.
Shell, which is a partner on Resoultion and Endeavor with Egdon, decided last month to drill the nearby Pensacola discovery with its partner on this, Deltic Energy.
Egdon said: “We are encouraged by recent news that Shell and Deltic have committed to drilling the nearby Pensacola prospect in 2022, which will test the same game.”
Shell purchased 70% of the P1929 and P2304 licenses, which contain Resolution and Endeavor, and assumed the role of operator last year.
The discoveries, off the Yorkshire coast, are believed to hold contingent resources of 231 billion cubic feet of gas and 18 billion cubic feet respectively.
Shell and Egdon announced earlier this year that the seismic survey scheduled for 2021 has been postponed to 2022 due to the potential impact on local fishing businesses, as well as potential impacts on the movements of marine mammals, the breeding season. seabirds and tourism.
Egdon has released interim results for the six-month period ended January 31, 2021, with pre-tax losses of £ 1million on income of £ 424,000.
They compare to losses of £ 3.2million over the same period in 2020 and income of £ 675,000, respectively.
Egdon’s shares surged in January when its onshore field, Wressle, reached its first oil.
President Philip Stephens said: “The most significant event during the period was the completion of construction and reclamation work and the start of oil flows at Wressle. We are still awaiting consent to proceed with proppant compression to bring production to the expected level of 500 b / d, which will have a significant impact on our production and cash flow.
“In addition, during the period, the company entered into refinancing agreements providing working capital to pursue our key objectives. We continue to proactively review new opportunities for low carbon energy transition and are pleased to have announced an initial MoU to explore possibilities for geothermal reallocation of some of our existing assets.
“We look forward to continuing our revised strategy against the backdrop of an improved operating environment compared to the past 12 months.”
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