21 Sep 2011 07:00
For immediate release 21 September 2011
EGDON RESOURCES PLC
("Egdon" or "the Company")
Completion of Sale of Interests in the Avington Oil field
Further to the announcement on 1 August 2011 and following approval by the Department of Energy and Climate Change, Egdon is pleased to report the completion of the sale of a 10% interest in the Avington oil field under licence PEDL070, for a consideration of £400,000 in cash.
Under the transaction, Egdon Resources Avington Limited ("ERA") has sold a 5% interest to IS E&P Limited and a 5% interest to IS NV Limited. The consideration paid by each company was £200,000 in cash and the assumption of their pro-rata shares of a Net Profit Interest ("NPI") payable to Heyco Energy Holdings S.L.
The Avington oil field is located in the County of Hampshire and is operated by Star Energy Oil UK Limited. Oil is currently produced from the Jurassic age Great Oolite reservoir from two wells, Avington-2Z and Avington-3Z.
Egdon retains an aggregate 26.67% interest in the licence and the Avington oil field.
The proceeds of the sale will be utilised on Egdon's active UK and French exploration, appraisal and development programme where the Company believes it can generate a better return on investment.
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
Jeremy Porter, Sarah Jacobs (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 twenty nine 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.