Egdon Resources PLC
07 December 2005
7 December 2005
For immediate release
EGDON RESOURCES PLC
Placing of Shares
Egdon Resources Plc ('Egdon' or the 'Company') is pleased to announce the
placing of 5,555,000 new ordinary shares of 1p each at 90p per share (the '
Placing Shares') to raise £5 million before expenses (the 'Placing'). The
Placing Shares were placed by Seymour Pierce Limited with new and existing
institutional investors and three of the Company's directors. Application has
been made for the Placing Shares to be admitted to AIM and admission of the
Placing Shares is expected to take place on 12 December. Following the Placing,
the Company will have 57,149,974 ordinary shares in issue.
The net proceeds of the Placing receivable by the Company, which are expected to
be £4.8 million, will provide equity capital for the Company to drill, and take
cores from, the Portland-1 borehole to confirm the thickness and suitability of
the salt sequence to create caverns to store natural gas. The funds will also
ensure that the Company has sufficient resources to analyse the cores and other
geological data from the borehole, and complete the Environmental Impact
Assessment which will accompany the project planning and pipeline construction
authorisation applications. Additional funds have also been raised to accelerate
drilling activity on the next tranche of prospects after completion in Q2 2006
of the multi-well programme currently underway.
Non-Executive Directors Walter Roberts, Kenneth Ratcliff and John Rix subscribed
for 100,000, 4,000 and 100,000 Placing Shares respectively in the Placing.
Messers Roberts, Ratcliff and Rix are now the beneficial owners of 1,026,750
(1.80%), 39,000 (0.07%) and 1,226,333 (2.15%) ordinary shares respectively.
Commenting on the Placing, Philip Stephens, Chairman of Egdon, said:
'We are pleased to have raised funds to take the Portland Gas Storage Project
through the planning process. Rather than involving a partner, the Board
believes that securing additional equity funding at this stage will maximize
long-term shareholder value in the project. An acceleration of the exploration
and appraisal programme in 2006 will allow Egdon to test a number of its higher
potential projects. These include the appraisal of the Grenade heavy oil
accumulation in France and exploration of the deeper Sherwood sandstone trend in
its Wessex Basin portfolio'.
For further information please contact:
Egdon Resources Plc 01256 702292
Mark Abbott, Joint Managing Director
Andrew Hindle, Joint Managing Director
Buchanan Communications 020 7466 5000
Eric Burns
Ben Willey
Notes to the Editors
The gas storage project on the Isle of Portland is owned outright by Egdon
through its wholly owned subsidiary, Portland Gas Limited. The Portland-1 gas
storage confirmation well will be drilled by Egdon from a site leased by
Portland Gas Limited.
Company Background
Egdon is an established, UK-based energy company primarily focused on the
hydrocarbon-producing basins of the onshore UK. Egdon also has exploration
interests in the offshore UK and France.
Egdon was formed in 1997 by Dr Andrew Hindle and Mark Abbott. In December 2004,
Egdon's shares commenced trading on AIM, having been previously traded on Ofex
since July 2000. The Company is developing two major business areas: 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; and a gas storage business initially focused on the
development of a salt cavern gas storage facility on the Isle of Portland,
Dorset.
This information is provided by RNS
The company news service from the London Stock Exchange
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