28 Jan 2011 07:00
Embargoed for release at 07:00 hrs 28 January 2011
EGDON RESOURCES PLC
("Egdon" or "the Company")
Acquisition of UK Onshore Licence Interests from Valhalla Oil and Gas UK Limited
Egdon Resources plc (AIM:EDR) is pleased to announce that it has reached agreement to acquire the entire interest of Valhalla Oil and Gas Limited ("Valhalla") in two onshore UK Petroleum Exploration and Development Licences ("PEDLs"). The interests to be acquired comprise 50% of PEDL180 and 50% of PEDL181, which are located in the East Midlands Petroleum Province in the County of Lincolnshire. The consideration for the acquisition will be the grant to Valhalla of a Net Profit Interest ("NPI") of 10% of the acquired interest in each of the licences. The NPI will be payable from any revenues after recovery of allowable exploration, development and production costs.
PEDL180 and 181 were awarded in the 13th UK Landward Licensing Round in 2008 and are located adjacent to Egdon's operated licences PEDL182 and PEDL241 where the Company holds a 50% interest. PEDL180, covering an area of 100 square kilometres, contains the Wressle Lead, mapped as extending into Egdon's existing PEDL182 and located to the South East of the Crosby Warren producing oil field and between oil discoveries at Brigg and Broughton . PEDL181, located to the East of Egdon's existing licences, is a large licence covering over 540 square kilometres and contains among other interesting structures the Caistor Lead, defined on 3D seismic data. Both licences are operated by Europa Oil and Gas and are subject to a drill or drop decision during 2011.
The acquisition is subject to regulatory approval from the Department of Energy and Climate Change (DECC), and approval from the joint venture partner.
Commenting on the acquisition Egdon's Managing Director Mark Abbott said:
"The acquisition of these licences from Valhalla provides Egdon with access to further high potential acreage in one of our core exploration areas and reinforces our UK onshore growth strategy."
For further information please contact:
Egdon Resources plc
Mark Abbott 01256 702292
Buchanan Communications
Richard Darby, James Strong, Gabriella Clinkard 020 7466 5000
Nominated Adviser and Broker - Seymour Pierce
Jonathan Wright, Jeremy Porter (Corporate Finance) 020 7107 8000
Richard Redmayne (Corporate Broking)
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 Europe.
Egdon currently holds interests in thirty one 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.
www.egdon-resources.com
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 25 years' experience.