14 Nov 2014 07:00
14 November 2014
EGDON RESOURCES PLC
("Egdon" or "the Company")
Acquisition of Yorkshire Exploration Limited
Egdon Resources plc (AIM:EDR) is pleased to announce that it has reached an agreement to acquire the entire issued share capital of Yorkshire Exploration Limited ("YEL"). YEL is a private company, which holds an 8% interest in Petroleum Exploration and Production Licence PEDL068 in North Yorkshire and Cleveland in the Cleveland Basin. Egdon is operator of PEDL068 with a 40% interest.
The consideration for this acquisition is £133,058 and will comprise £75,000 to be satisfied by the issue of new Egdon shares to YEL at completion and the assumption of £58,058 of YEL debt. The number of consideration shares will be calculated based on the average closing mid-price for the five days prior to the day of completion. The commercial date of the transaction is 1 August 2014. The transaction is subject to approval of the change of control by DECC.
YEL is owned and controlled by Mr. John Rix and his family members. Mr. Rix was a non-executive Director of Egdon until his retirement from the Board in late 2011.
Licence PEDL068 contains the Kirkleatham gas field which is shut-in pending the potential drilling of a side-track well to target an un-drained portion of the field up-dip from the existing producer well. The licence also contains the Westerdale/Ralph Cross gas discovery where planning consent is in place for an appraisal well, which is likely to be drilled in 2015/2016. Exploration in PEDL068 to date has concentrated on conventional Permian age carbonate gas plays but the licence may also contain other conventional and unconventional prospectivity.
Egdon estimates that the transaction will add approximately 0.70bcf of Best Estimate Contingent and Prospective Conventional Resources to Egdon's resource inventory.
The current interests in PEDL068 are as follows:
Egdon Resources U.K. Ltd 40.00%
Sterling Resources (UK) Ltd 47.00%
Yorkshire Exploration Limited 8.00%
Montrose Industries Limited 5.00%
Commenting on the acquisition, Mark Abbott, Managing Director of Egdon said:
"The acquisition of YEL adds to our existing interest in PEDL068 and adds incremental conventional resources and other prospectivity to the Company"
For further information please contact:
Egdon Resources plc
Mark Abbott, Jerry Field 01256 702 292
Buchanan
Richard Darby, Anna Michniewicz 020 7466 5000
Nominated Adviser and Broker - Cantor Fitzgerald Europe
David Porter, Sarah Wharry (Corporate Finance) 020 7894 7000
Richard Redmayne (Corporate Broking)
Joint Broker - VSA Capital Limited
Andrew Monk, (Corporate Broking) 020 3005 5000
Andrew Raca (Corporate Finance)
Notes to Editors:
Egdon Resources plc
Egdon Resources plc (LSE: EDR) is an established UK-based exploration and production company primarily focused on onshore exploration and production in the hydrocarbon-producing basins of the UK and France.
Egdon currently holds interests in thirty six licences in the UK and France and has an active programme of exploration, appraisal and development within its balanced portfolio of oil and gas assets. Egdon is an approved operator in both the UK and France.
Egdon was formed in 1997 and listed on AIM in December 2004.
In accordance with the AIM Rules - Note for Mining and Oil and Gas Companies, the information contained in this announcement has been reviewed and signed off by the Managing Director of Egdon Resources plc Mark Abbott, a Geoscientist with over 26 years' experience.
Evaluation of Contingent and Prospective Resources has been assessed in accordance with 2007 Petroleum Resources Management System prepared by the Oil and Gas Reserves Committee of the Society of Petroleum Engineers (SPE) and reviewed and jointly sponsored by the World Petroleum Council (WPC), the American Association of Petroleum Geologists (AAPG) and the Society of Petroleum Evaluation Engineers (SPEE).