23 Nov 2010 07:00
23 November 2010
EGDON RESOURCES PLC
Completion of Acquisition of EnCore (E&P) Limited
Further to the announcements on 22 March 2010 and 28 July 2010, the Board of Egdon Resources plc (AIM:EDR) is pleased to report the completion of the acquisition of EnCore (E&P) Limited, the holder of two licence interests in France - Mairy and Nimes - from EnCore Oil plc. The consideration was £100,000 in cash.
The completion follows the receipt of non-opposition to the proposed transfer of the ownership of EnCore (E&P) Limited to Egdon by the French authorities.
EnCore (E&P) Limited has a 50% non-operated interest in the Mairy Permit which is located in the Eastern Paris Basin. The interest was increased from 30% to 50% following the withdrawal of Lundin from the permit early in 2010. In addition to conventional Rhaetic oil potential, the permit has also been identified as having shale-oil potential similar to the highly productive Bakken Shale of the US Williston Basin. The permit is operated by Toreador Energy France who concluded a "Paris Basin shale-oil partnership" agreement with Hess in May of 2010 which includes the Mairy Permit.
The operated Nimes Permit in the South East Basin of France is owned 100% and is located in an under-explored part of France where there has been a recent resurgence of interest, largely focused on the regions shale-gas potential.
Commenting on completion of the acquisition, Mark Abbott, Managing Director of Egdon said:
"France remains a key focus for Egdon and the addition of the Mairy and Nimes permits to our portfolio provides further opportunities for conventional and unconventional oil and gas within the country. We expect a well to be drilled in Mairy during 2011 and will be progressing our evaluation of Nimes over the coming months."
For further information please contact:
Egdon Resources plc
Mark Abbott 01256 702292
Buchanan Communications
Richard Darby, James Strong, Gabriella Clinkard 020 7466 5000
Seymour Pierce - Nominated Adviser and Broker
Jonathan Wright / Jeremy Porter - Corporate Finance
Richard Redmayne - Corporate Broking 020 7107 8000
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 has production from the Keddington and Kirklington oil fields in the East Midlands and the Avington oil field in Hampshire. Further oil and gas production is anticipated from Kirkleatham and Ceres in 2010 and Waddock Cross in 2011.
Egdon Resources plc listed on AIM in January 2008, following the demerger of its gas storage business, Portland Gas plc (now renamed Infrastrata plc). The pre-demerged business 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 23 years' experience.