Acquisition of Yorkshire Exploration Ltd

RNS Number : 5256Y

Egdon Resources PLC

02 December 2014

 

                                                                                                                                                         2 December 2014

EGDON RESOURCES PLC

("Egdon" or "the Company")

Completion of the Acquisition of Yorkshire Exploration Limited

Further to the announcement made on 14 November 2014, Egdon Resources plc (AIM:EDR) is pleased to announce that it has completed the acquisition of the entire issued share capital of Yorkshire Exploration Limited ("YEL").   YEL is a private company, which holds an 8% interest in Petroleum Exploration and Production Licence PEDL068 in North Yorkshire and Cleveland in the Cleveland Basin.  Egdon is operator of PEDL068 with a 40% interest.

As consideration for the acquisition, Egdon has today issued 546,448 Ordinary Shares ("the Consideration Shares") to the previous shareholders of YEL which include Mr. John Rix who was a non-executive Director of Egdon until his retirement from the Board in late 2011. The issued shares represent 0.25 per cent. of the  enlarged share capital of the Company.  Application has been made for admission of the Consideration Shares to trading on AIM, which is expected to become effective on 8 December 2014.  The total number of Egdon Ordinary Shares in issue is now 221,345,811.  Therefore, the total number of voting rights in the Company is 221,345,811. 

Licence PEDL068 contains the Kirkleatham gas field which is shut-in pending the potential drilling of a side-track well to target an undrained portion of the field up-dip from the existing producer well.  The licence also contains the Westerdale/Ralph Cross gas discovery where planning consent is in place for an appraisal well, which is likely to be drilled in 2015/2016.  Exploration in PEDL068 to date has concentrated on conventional Permian age carbonate gas plays but the licence may also contain other conventional and unconventional prospectivity.

Egdon estimates that the transaction will add approximately 0.70bcf of Best Estimate Contingent and Prospective Conventional Resources to Egdon's resource inventory. 

The current interests in PEDL068 are as follows:

Egdon Resources U.K. Ltd	40.00%
Sterling Resources (UK) Ltd	47.00%
Yorkshire Exploration Limited	8.00%
Montrose Industries Limited	5.00%

Commenting on the acquisition, Mark Abbott, Managing Director of Egdon said: 

"We are pleased to have completed this acquisition which adds to our existing interest in PEDL068 and adds incremental conventional resources and other prospectivity to the Company"

For further information please contact:

Egdon Resources plc

Mark Abbott, Jerry Field                                                                                      01256 702 292

Buchanan

Richard Darby, Anna Michniewicz                                                                    020 7466 5000

Nominated Adviser and Broker - Cantor Fitzgerald Europe

David Porter, Sarah Wharry (Corporate Finance)                                         020 7894 7000

Richard Redmayne (Corporate Broking)

Joint Broker - VSA Capital Limited

Andrew Monk, (Corporate Broking)                                                                  020 3005 5000

Andrew Raca (Corporate Finance)

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 France. 

Egdon currently holds interests in thirty six 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.

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 26 years' experience.

Evaluation of Contingent and Prospective Resources has been assessed in accordance with 2007 Petroleum Resources Management System prepared by the Oil and Gas Reserves Committee of the Society of Petroleum Engineers (SPE) and reviewed and jointly sponsored by the World Petroleum Council (WPC), the American Association of Petroleum Geologists (AAPG) and the Society of Petroleum Evaluation Engineers (SPEE).

 

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