Egdon Resources provides an update in relation to the Mairy Permit (the "Permit"), located in the eastern part of the Paris Basin, onshore France.

Egdon has been informed by the operator, Hess Oil France (Hess), that drilling operations commenced on 20 January 2013 at the Huiron-1 exploration well in the Permit. The Huiron-1 well will evaluate the hydrocarbon potential of the Jurassic, Rhaetian and older formations and is expected to take around 60 days to drill.

In addition, Egdon is pleased to advise that it has finalised a farmout of part of its interest in the Mairy Permit to Hess. Under the terms of the farmout, Egdon will transfer an unencumbered 35% interest in the Permit to Hess, taking their total beneficial interest to 85%, in return for a carry of the well costs attaching to Egdon's retained 15% interest, capped at the level of a gross cost of $10.25 million for the Huiron-1 well. Additionally Hess will carry Egdon for $0.5 million of other general and administrative costs on the Permit. The effective date for the farmout is 1 January 2012. The farmout is subject to the standard government approval process.

Tags: Egdon Resources Plc