Reply Egdon Licences Split19 May 2014 00:10
From Egdon Resources Website
Proposed Alkane Transaction
Egdon proposes to acquire an onshore shale gas business comprising certain Licence Interests from Alkane in exchange for the issue of the Consideration Shares, adding further prospective UK shale-gas acreage to the Egdon portfolio. The key points of the deal are:
The onshore shale gas business and assets being acquired comprise ten licences totalling 66,867 net acres seen as prospective for shale-gas largely in the East Midlands Basin. The licence interests will be split on a horizontal axis with the Company acquiring a 100% interest in the lower interest with Alkane Energy UK Limited, or Regent Park Energy Limited, as the case may be, retaining a 100% interest in the upper interest
Three licences are viewed as having the most shale-gas potential: PEDL043 and PEDL169 in the Gainsborough Trough in the East Midlands Basin and PEDL191 in the Bowland Basin.
PEDL043 (14,085 net acres, 100% Alkane) and PEDL169 (3,064 net acres, 20% Alkane) in the Gainsborough Trough lie adjacent to Egdon’s PEDL139/140 acreage and PL161/162.
PEDL191 (16,309 net acres, 100% Alkane) lies in the Blacon/Craven Basin in Widnes/Liverpool Airport area in Lancashire close to many heavy industrial gas users and IGAS’ recent shale-gas exploration wells at Ince Marshes and Barton Moss.
Other licences included in the deal are: in the East Midlands Basin PEDL001 (2,718 net acres, 100% Alkane), PEDL037 (2,471 net acres, 100% Alkane), PEDL202 (20,806 net acres, 100% Alkane), PEDL011 (741 net acres, 100% Alkane), PL161 (1,483 net acres, 100% Alkane) and in the Blacon/Craven Basin, EXL253 (741 net acres, 100% Alkane), PEDL039 (741 net acres, 100% Alkane).
Alkane PEDL Licence areas in the United Kingdom
1. Yorkshire (PEDL 11, 37, 43, 161, 169 – Currently seven operating projects)
2. Nottinghamshire (PEDL 1, 90, 130, 202, 254, 255 – Currently ten operating projects)
3. North-West (PEDL 39, 191, 253)
4. South Wales (PEDL 14)
5. North Staffs (PEDL 141)
6. Derby (PEDL 213)
7. South Staffs (PEDL 40, 56, 57, AL010 (part) – two operating projects)
ALK are 823 sq kms +21 licenses and will bid in the 14th Round Onshore in June/July – out of its own cash resources if required working in partnership with Egdon – story has yet to unfold.
Note Alk has only sold the ‘Shale Interest in these PEDL’s retaining all upper levels CMM CBM etc - IMO this the first new split license sale identifying Shale specifically. There’s more to come in this partnership. ALK has the on-going cashflow EBITDA +£8m to invest or support. Hope this helps.
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