Yesterday North Yorkshire County Council approved planning permission for Third Energy’s appraisal of Kirby Misperton-8 (KM-8) in the Cleveland Basin. We understand that work to hydraulically fracture and test KM-8 could be carried out as early as Q4 CY16. The read-across to Egdon is two-fold: first, planning success at KM-8 should help pave the way for planning approval at IGas-operated Springs Road where Egdon retains a 14.5% carried interest in a two-well exploration programme. Second, appraisal success could be a positive read-across for Egdon’s unconventional gas potential at the Cloughton tight gas field to the North East of KM-8 as well as Teesside to the North. Please see our report of 16 May 2016 for further details and a full breakdown of our Egdon valuation.
