Egdon Resources, an oil-and-gas company, has formed a new joint venture with Cuadrilla North Cleveland and York Energy for the appraisal and development of licenses containing its conventional gas Weaverthorpe Prospect in northern England.
Confirming a Viable Prospect
Egdon Resources exercised its option to farm-in to onshore production license PL081 under previously agreed terms with York Energy. After processing seismic data and conducting extensive studies, the company has confirmed the presence of a material, commercially viable prospect.
Distribution of Interests
In addition, Egdon Resources, York Energy, and Cuadrilla signed a letter of agreement pertaining to PEDL347, which outlines the distribution of legal and beneficial interests in both licenses. As per the agreement, Egdon will hold 52.5%, Cuadrilla will hold 25%, and York will hold 22.5% of the licenses. Once farm-in costs are recovered, Egdon will assign a 2.5% interest to York.
Responsibilities and Timeline
Egdon has been appointed as the operator of the licenses and will bear the full cost of transferring interests, as well as planning, drilling, logging, and testing the Weaverthorpe Prospect. The company has a three-year timeline to complete the work program.