Egdon Resources has been advised by Seven Star Natural Gas Ltd (Seven Star), the farm-in partner on UK onshore Staffordshire licence PEDL141, that planning permission was granted by Staffordshire County Council for the re-entry and testing of the Nooks Farm-1A well at a planning committee meeting held on 3 February 2011.

The Nooks Farm accumulation was discovered by Shell in 1982, with the Nooks Farm-1A well encountering gas bearing sandstones of Carboniferous age at a depth of 430m relative to sea level. The well achieved a maximum flow rate of 1.12 million cubic feet of gas per day on test. Estimates of the volumes of gas in place at Nooks Farm have been independently assessed as being in the range of 0.88 to 3.83 billion cubic feet of gas. It is proposed to re-enter the Nooks Farm-1A well and produce gas for on-site electricity generation with export via an underground cable to the National Grid.

Under the terms of a Farm-in Agreement the drilling will be operated by Seven Star, a wholly owned subsidiary of UK Onshore Gas Limited.

Egdon holds a 46% interest in the licence and will be carried through the planned drilling programme.

The licence interests in PEDL141 are: Egdon Resources Plc 46% Seven Star Natural Gas Limited 50% Altwood Petroleum Limited 4%

Commenting on the news Egdon's Managing Director Mark Abbott said, "We are pleased to receive consent for our planned re-entry of the Nooks Farm-1A gas discovery well and now look forward to Seven Star progressing plans for drilling and testing operations which we expect to be completed by September of this year. The proposal for low impact operations has enabled us to gain planning consent where previous operators have failed. Given a successful outcome to the operations we believe that Nooks Farm could make a contribution to revenues as early as 2012."

Tags: Egdon Resources Plc