Completion of Acquisition

17 Oct 2007 10:35

Egdon Resources PLC17 October 2007 17th October 2007 For Immediate Release EGDON RESOURCES PLC ("EGDON" or "The Company") Completion of acquisition of onshore UK licences from Stag Energy Limited, Issue of new shares and Total Voting Rights Egdon Resources Plc (EDR:AIM), the onshore UK focused energy company, is pleasedto announce that, further to the announcement made on 3 September 2007, it hascompleted the acquisition from Stag Energy Limited of their entire interest inUK Onshore Petroleum Exploration and Development Licences PEDL094, PEDL118,PEDL130 and PEDL132, all of which are located in the East Midlands. The consideration for the acquisition was £100,000 in cash and the issue of10,494 Egdon Ordinary shares. In addition, Egdon has granted to Stag a GrossOveriding Royalty of 5% of future production from the licences. Application has been made for the new shares to be admitted to AIM and admissionis expected to take place on 23 October 2007. Following admission, the Companywill have 67,801,840 ordinary shares in issue and an equivalent number of votingrights. Licence PEDL118 (Egdon 100%) contains the Eakring-Dukes Wood abandoned oil fieldwhich produced from 1940 until 1966. Egdon believe there is potential torejuvenate the field to take advantage of increased oil prices, improvedtechnology and the recognition of undrilled and undrained parts of the field. Planning approval is in place for the drilling of the Eakring North prospectwhich will test an undrained high at the north of the Eakring-Dukes Woodstructure. Egdon estimate that the oil in place within the Eakring Northprospect is in the range 1.0 to 2.1 million barrels. Options will beinvestigated for the restoration of production from some of the existingabandoned wells on the field. In addition, reservoir modelling will beundertaken to determine the potential to access undrained areas of the field andfor enhanced oil recovery from the un-produced Wingfield Flags reservoir whichEgdon estimate has potential oil in place in the range 9 to 12 million barrels. Licences PEDL094, PEDL130 and PEDL132 contain a number of identified leads andprospects and will be evaluated for further drilling opportunities during 2008. For further information please contact: Egdon Resources Plc Mark Abbott, Joint Managing Director 01256 702 292Andrew Hindle, Joint Managing Director 0208 332 1200 Buchanan Communications Ben Willey 020 7466 5000Nicholas Melson 020 7466 5000 Seymour Pierce Jonathan 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 is developing 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. In accordance with AIM rules - guidance for mining, oil and gas companies, theinformation contained in this announcement has been reviewed and signed off bythe Joint Managing Director of Egdon Resources Mark Abbott, a Geoscientist withover 21 years experience. This information is provided by RNS The company news service from the London Stock Exchange