Egdon Resources has signed an Exploration Option and Farm-in Agreement (The Agreement) with Scottish Power Generation Limited (SPG) in respect of UK Onshore Production Licences PL161 (Block SE/60b) and PL162 (Blocks SE/70a and SE/80b) located in Lincolnshire.

The Agreement defines an "Exploration Area" which excludes those parts of PL161 and PL162 which relate to the Hatfield Moor and Hatfield West gas storage facilities, both operated by SPG.

Under the terms of The Agreement SPG has granted Egdon an Option Period of twelve months by the end of which Egdon is required to either advise SPG of its intention to commit to the drilling of an exploration well in the Exploration Area (the "Option Well") or else terminate The Agreement.

During the Option Period, Egdon will undertake, at its own cost and risk, a full evaluation of the hydrocarbon potential of the Exploration Area to include reprocessing all relevant existing 2D seismic data, evaluation of all available well data, and generation of a full review and report on the hydrocarbon prospectivity of the Exploration Area.

Tags: Egdon Resources Plc