TIDMEDR
RNS Number : 4441B
Egdon Resources PLC
04 April 2017
For immediate release
4 April 2017
EGDON RESOURCES PLC
("Egdon" or "the Company")
PEDL209 Acquisition and New Opt-In Agreement with Total
Egdon Resources plc (AIM:EDR) is pleased to announce that it has
acquired from Stelinmatvic Industries Limited ("Stelinmatvic") its
12% interest in the unconventional resources exploration rights in
UK Onshore licence PEDL209 located in one of the Company's core
areas, the Gainsborough Trough. As part of the consideration for
this acquisition, Egdon has transferred 12% out of its interest in
the remaining conventional prospects on the PEDL209 licence to
Stelinmatvic.
As further consideration, Egdon has today issued 580,646
Ordinary Shares in the Company ("the Consideration Shares") to
Stelinmatvic, fully paid. The value of the Consideration Shares is
equivalent to GBP54,000 based on the average closing mid-price for
the five days prior to the day of completion. The Consideration
Shares represent 0.22% 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 7 April 2017. Following admission the Company will
have 259,984,822 shares in issue.
Concurrent with this transaction, Egdon has entered into a new
Opt-In Agreement with Total E&P UK Limited ("Total"), a wholly
owned subsidiary of Total SA. Under the terms of the agreement,
Total has an option to farm-in to unconventional resources
exploration in PEDL209, exercisable until 31 December 2018 and to
earn a 36% interest in the licence by paying Egdon's remaining 36%
(together with Total's own 36% interest) of an exploration
programme of up to a gross GBP13.47 million which would include
seismic acquisition and the drilling of a well.
This agreement with Total supersedes the previous agreement
announced on 30 January 2014. The transaction with Stelinmatvic has
already completed and the interests in PEDL209 are now:
Conventional Unconventional
Post option
Current exercise
========================= ============= ======== ============
Egdon Resources
U.K. Limited 35% 72% 36%
Blackland Park
Exploration Limited 28% 28% 28%
Stelinmatvic Industries 27% - -
Limited
Union Jack Oil 10% - -
plc
Total E&P UK Limited - - 36%
------------------------- ------------- -------- ------------
The acquisition adds a total of 1,898 net acres to Egdon's
unconventional resources exploration acreage holdings, or 949 net
acres post option exercise.
Commenting on the transaction, Mark Abbott, Managing Director of
Egdon, said:
"We are pleased to increase our interest in the unconventional
resources prospectivity of PEDL209 and secure a new opt-in
agreement with Total, which would fully carry our increased
interest in the licence if exercised.
Following the approval by Nottinghamshire County Council last
November of IGas operated drilling at Springs Road in the
neighbouring licence of PEDL140, we look forward to being carried
on potentially play-opening wells in the Gainsborough Trough, our
core area for unconventional resources exploration.
We continue to believe that indigenous onshore gas could be a
major contributor to the UK's future energy mix."
For further information please contact:
Egdon Resources plc
Mark Abbott 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
Mark Westcott (Sales)
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.
Egdon holds interests in 43 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.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). Upon the
publication of this announcement via Regulatory Information Service
("RIS"), this inside information is now considered to be in the
public domain.
Opt-in Agreement with Total E&P UK Limited - PEDL209 30
January 2014
Under the terms of January 2014 opt-in agreement, Total had an
option to farm-in to PEDL209 exercisable until 31 December 2015, to
earn a 50% interest in the licence from all the licensees by paying
100% of an exploration programme of up to GBP13.47 million (ca. $22
million) which would include seismic acquisition and the drilling
of a well. Egdon would continue to be the operator of PEDL209 with
Total becoming the operator following the carried work
programme.
As consideration for granting of the option, Total made a
non-refundable cash payment totalling GBP1,530,025 (ca. $2.5
million). Egdon received the sum of GBP918,015 (ca. $1.5
million).
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCBLGDSDUGBGRX
(END) Dow Jones Newswires
April 04, 2017 02:00 ET (06:00 GMT)
Egdon Resources (LSE:EDR)
Historical Stock Chart
From Apr 2024 to May 2024
Egdon Resources (LSE:EDR)
Historical Stock Chart
From May 2023 to May 2024