Completion of Acquisition
14 March 2011
EGDON RESOURCES PLC
("Egdon" or "the Company")
Completion of Acquisition of UK Onshore Licence Interests from Valhalla Oil and Gas UK Limited
Egdon Resources plc (AIM:EDR) is pleased to report that further to the announcement of 28 January 2011 it has now completed the acquisition from Valhalla Oil and Gas UK Limited ("Valhalla") of their entire 50% interests in UK Petroleum Exploration and Development Licences ("PEDLs") 180 and 181.
The consideration for the acquisition is the grant to Valhalla of a Net Profit Interest ("NPI") of 10% of the assigned 50% interest in each of the licences. .
PEDL's 180 and 181 are located in the county of Lincolnshire and are operated by Europa Oil and Gas. They are situated adjacent to Egdon's operated licences PEDL182 and PEDL241 where the Company holds a 50% interest. PEDL180 contains the Wressle Prospect which extends into PEDL182 where the Broughton oil discovery is located. This oil prone trend of structures is bounded to the north-west by the Crosby Warren producing oil field and the Brigg oil discovery to the south-east. PEDL181 contains a number of potential leads defined on 3D seismic data which will be further evaluated.
Both licences are subject to a drill or drop decision later this year.
Commenting on the acquisition Egdon's Managing Director Mark Abbott said:
"We are pleased to have completed this acquisition which is in line with our UK onshore growth strategy. We are currently developing plans for possible 3D seismic acquisition over the Broughton-Wressle structures during 2011 to firm up potential drilling locations in this highly prospective trend. "
For further information please contact:
Egdon Resources plc
Mark Abbott 01256 702292
Buchanan Communications
Richard Darby, James Strong, Gabriella Clinkard 020 7466 5000
Nominated Adviser and Broker - Seymour Pierce
Jonathan Wright, Jeremy Porter (Corporate Finance) 020 7107 8000
Richard Redmayne (Corporate Broking)
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 Europe.
Egdon currently holds interests in thirty one 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 25 years' experience.
This information is provided by RNS