HEYCO Energy Group, Inc., through its subsidiary Petrichor Partners LP, completed its acquisition of UK-based energy firm Egdon Resources plc, the companies announced jointly. The acquisition, which was unanimously recommended by Egdon’s board of directors in May, marks a new milestone in the 20-year relationship between the two companies.
HEYCO, an upstream energy company with holdings in the United States and Europe, has invested in and provided technical advice to Egdon for more than two decades. This acquisition adds to HEYCO’s expanding European portfolio, following the purchase of a gas field in Northern Spain and the establishment of a Madrid office in 2022.
“Egdon is a very strong enterprise with current production and a number of exciting conventional, unconventional, and renewable opportunities,” said George Yates, President and CEO of HEYCO. “The acquisition allows us to bring Egdon fully into the HEYCO family of companies and strategically leverage our collective technical and operational expertise across projects in the UK, Spain, and the United States.”
Founded in 1997, Egdon holds interests in 33 licences in the UK with exposure to the full cycle of opportunities from exploration through to development and production of oil and gas. The company’s flagship Wressle field is the onshore UK’s second highest producing oil field after Wytch Farm. Egdon is also developing opportunities for energy storage, hydrogen, geothermal, and renewable generation.
“There is a great deal of mutual respect between Egdon and HEYCO built up over many years of working together,” said Mark Abbott, CEO of Egdon. “We look forward to Egdon’s next chapter as a private company within the wider HEYCO family where the combined financial and human capital will help us reach our vision of providing locally derived, secure, affordable, and sustainable energy to meet the UK’s evolving energy needs.”
While Egdon’s primary focus is on conventional oil and gas projects, it also has significant shale assets that are currently impacted by the UK’s moratorium on hydraulic fracturing. “With its sizeable shale acreage in the Gainsborough Trough, Egdon has smartly positioned itself to be a leader in delivering critical volumes of natural gas to UK households and businesses should lawmakers support local, unconventional development,” said Yates.
There is an independently recognised demand for natural gas in the UK both during the transition to Net Zero in 2050 and beyond. The UK’s Climate Change Committee has modelled natural gas demand across five scenarios compliant with the UK’s Net Zero commitments, each of which shows a shortfall of natural gas supplies.
The UK has an untapped trove of world-class shale reserves. Data shows that the Bowland Shale in the Gainsborough Trough is a premier opportunity with a gas in place per square mile exceeding most of the largest natural gas shale plays in the United States.
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/29092023/heyco-energy-group-acquires-egdon-resources/
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