EGDON Resources, the UK oil and gas explorer that recently agreed to buy Alkane Energy’s shale gas assets, is planning to develop a North Sea gas field that it says could transform its business.
“We are an onshore player that has only dipped our toes in the offshore arena before,” chief executive Mark Abbott told City A.M. “The field was an early North Sea discovery, but the costs of developing it meant it was left unexplored. We have a plan to develop it from an onshore location and we think it has the potential to transform the value of the business.”
The hybrid project, which Egdon wants to start developing in early 2015, will come under onshore planning regulations but will be subject to the offshore tax regime.
Conventional oil and gas are the near-term value driver for Egdon, but Abbott says shale gas will make up 50 per cent of its business in a few years. Egdon has sold 40m shares to Alkane in return for its shale interests in 10 licence areas.