Oil and gas explorer and producer Egdon Resources has commenced production at the Kirklington oil field.
This sparked a 1.25p rise in the share price to 12.25p a share, which values Egdon at £9.25m.
Egdon acquired the well site in Nottinghamshire, which has been in production in the past, from Star Energy in 2008. The plan is to continue with the existing well and then access additional reserves. The average daily rate is 32 barrels of oil per day.
Egdon reported a maiden profit of £133,000 in the six months to January 2009, thanks to a £200,000 disposal gain. There was £1.79m in the bank.
Egdon gained a new exploration permit in France during June 2009. Egdon holds 40% of the Gex permit, which is located in the Jura/Molasse Basin of eastern France on the border of Switzerland. Eagle Energy (40%) and Northern Petroleum (20%) are the partners. The joint venture has to spend €1.16m on geological studies, seismic data and drilling a well.
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