Egdon Resources (LON:EDR) has provided an update in relation to the Holmwood prospect where EDR has an 18.4% interest. It was previously announced that Surrey County Council Planning and Regulatory Committee had opted to defer its decision on Condition 19 (the Traffic Management Scheme), requesting further information. However, the license operator, Europa Oil and Gas (LON:EOG), now considers that it is in a position to submit an appeal and resubmit the Construction Traffic Management Plan which meets the requirements of Condition 19. In addition to the resubmission, EOG intend to carry out additional consultations with local Parish Councils and the residents of Coldharbour Lane.
In line with company guidance we continue to expect EOG and EDR to commence drilling at Holmwood in H1 2018 following successful approval of the resubmission.
We reiterate our Buy recommendation and 48.8p target price.