Egdon Resources plc, a UK-based exploration and production company, has said that its wholly owned subsidiary Egdon Resources (New Ventures) Limited has bagged the Navacelles Permit in the South East Basin of onshore France.
The Navacelles Permit, which covers an area of 216sqkm, was awarded for a period of five years effective from March 1, 2010 and carries a financial commitment of EUR1.36m.
Egdon will be the operator of the permit with a 60% interest. Egdon’s joint venture partners are Eagle Energy (20%) and a subsidiary of Heyco International (20%).
Egdon’s evaluation of the license area has identified a series of anticlines where previously drilled wells have indicated the presence of gas in low-permeability limestone reservoirs, the company said.
The company added that it will investigate the potential for applying modern fracture stimulation techniques to enhance the productivity of the gas bearing limestones to achieve commercial flow rates. It has also identified shale-gas potential within the license area and this will form an integral part of its detailed evaluation.
Mark Abbott, managing director of Egdon, said: “We are delighted to have been awarded the Navacelles Permit in the light of substantial competition, which included oil major Total.
“The permit contains a good mix of prospectivity, with the presence of gas bearing structures which are candidates for fracture stimulation, and the recognition of a potential shale-gas resource.”