EDR.L Regulatory News (EDR)

25 Sep 2007 07:01

Egdon Resources PLC25 September 2007 25 September 2007 For Immediate Release EGDON RESOURCES PLC Placing of Ordinary Shares and TVR Egdon Resources Plc (AIM: EDR, "Egdon" or the "Company") is pleased to announcethe placing of 2,325,582 new ordinary shares of 1p each at 215p per share (the"Placing Shares") to raise £5 million before expenses (the "Placing"). ThePlacing Shares were placed by Seymour Pierce Limited with new and existinginstitutional investors. Application has been made for the Placing Shares to beadmitted to AIM and admission of the Placing Shares is expected to take place on28 September. Following the Placing, the Company will have 67,791,346 ordinaryshares in issue and an equivalent number of voting rights. The net proceeds of the Placing receivable by the Company, which are expected tobe £4.8 million, will provide equity capital for Portland Gas NI Limited('Portland Gas'), a wholly owned subsidiary within the Egdon group of companies,to progress activities in its recently announced new project in NorthernIreland. Portland Gas is evaluating the potential of a Permian salt sequence inthe Larne area of Northern Ireland to create caverns to store natural gas. Thecompany has commenced an Environmental Impact Assessment for the proposedproject and plan to commence acquisition of a 3D seismic programme duringOctober to define the distribution and thickness of the salt within the areaof interest. For further information please contact: Egdon Resources Plc Andrew Hindle, Joint Managing Director 020 8332 1200Mark Abbott, Joint Managing Director 01256 702 292 Buchanan CommunicationsBen Willey 020 7466 5000 Seymour PierceJonathan Wright 020 7107 8000 Notes to Editors: Company Background Egdon is an established, UK-based energy company primarily focused on theonshore UK. Egdon also has exploration interests in the offshore UK and France.Egdon's shares are traded on the AIM market. The Company has developed two distinctive businesses: • An oil and gas exploration and production business which has a portfolio of twenty exploration licences containing identified oil and gas prospects ranging from discoveries under appraisal through to higher risk but higher reward "wild-cat" exploration prospects. • A gas storage business initially focused on the development of a major salt cavern gas storage facility on Portland, Dorset. Egdon plans to demerge the two businesses on or soon after 21 December 2007. Portland Gas NI Limited Portland Gas NI Limited, a Northern Ireland registered company, is one of agroup of companies owned by Portland Gas Limited, a wholly owned subsidiary ofEgdon Resources Plc. The Portland Gas group of companies, initially set up todevelop the Portland project in Dorset, will seek to make a significantcontribution to the UK's energy infrastructure and will seek to acquire anddevelop a portfolio of gas storage assets in the UK and internationally. Detailsof the group's activities can be found at the Portland Gas websitewww.portland-gas.com. This information is provided by RNS The company news service from the London Stock Exchange