LONDON (Alliance News) - Egdon Resources PLC said Thursday it is still awaiting consent from the Department of Energy and Climate Change for the transfer of licences from Alkane Energy PLC.
Egdon Resources said it now expects this consent - which will see the transfer of Alkane's rights over its shale interests in 10 licence areas - to be obtained by June 12, 2014.
Due to the delay, the admission of the new ordinary shares issued pursuant to the transaction with Alkane, the Placing and Open Offer, is now expected to become effective on or around June 12, 2014 rather than June 6, 2014 as originally expected, said Egdon.
Egdon Resources said Tuesday that it had raised GBP606,709 through an over subscribed open offer, to help fund its acquisition of the onshore shale gas business and assets of Alkane Energy.
Egdon announced the acquisition in May and at that time said it planned to raise GBP6.4 million through the placing of 32 million shares at 20 pence each, with an open offer to raise up to a further GBP600,000 through the issue of 3 million shares at the same price.
Egdon received acceptances for 16.3 million shares, around 536% of the maximum open offer shares available.
Shares in Egdon Resources were trading 5.38% higher at 28.32 pence per share Thursday morning. Alkane Energy shares were also trading higher, up 2.69% at 43.9 pence per share.
By Alice Attwood; aliceattwood@alliancenews.com; @AliceAtAlliance
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Alkemy Capital. (ALK)