Acquisition of Dorset Exploration Limited

RNS Number : 8047I

Egdon Resources PLC

30 July 2012

 



                                                                                                                        30 July 2012

EGDON RESOURCES PLC

("Egdon" or "the Company")

Completion of the Acquisition of Dorset Exploration Limited

Further to the announcement made on 21 June 2012, Egdon Resources plc (AIM:EDR) is pleased to announce that it has completed the acquisition of the entire issued share capital of Dorset Exploration Limited ("DEL").   DEL is a private company which holds 10% interests in Production Licence PL090 and Petroleum Exploration and Production Licence PEDL237, both located in the county of Dorset. Egdon Resources U.K. Limited is operator for both these Licences with a 45% interest in each.

As consideration for the Acquisition, Egdon has today issued 1,223,242 Ordinary Shares ("the Consideration Shares") to the previous shareholders of DEL 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 0.93 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 3 August 2012.  The total number of Egdon Ordinary Shares in issue is now 132,192,336.  Therefore, the total number of voting rights in the Company is 132,192,336. 

Licence PL090 contains the Waddock Cross Oil Discovery, where Egdon intends to progress with a planning application for the development of the field, and a number of other prospects.  In PEDL237 the licence group has identified and delineated a potentially commercial accumulation of oil which was encountered in the 1959 Langton Herring North-1 well but may not have been adequately tested, and has mapped a number of structural prospects and leads at the level of the Sherwood Sandstone, the primary reservoir at the Wytch Farm oilfield. The licence group plans to delineate these structures, which extend into PL090, by reprocessing existing vintage 2D seismic data and/or acquiring new seismic, most likely 3D, with a view to promoting at least one into a viable, drillable prospect.

Egdon estimate that the transaction will add an estimated 11 mmbo of Best Estimate Prospective Resources to Egdon's resource inventory.

The interests in PL090 and PEDL237 are as follows:

Egdon Resources U.K. Limited (operator)                      45.00%

First Oil Expro Limited                                                         26.25%

Aurora Exploration (UK) Limited                                         18.75%

Dorset Exploration Limited                                                  10.00%

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

"We are pleased to have completed this acquisition which increases our interest in these existing prospective Egdon operated licences.  The transaction adds 11 million barrels of prospective resources to our prospect inventory and increases our interest in the Waddock Cross oil discovery where we are now in the process of developing a planning application for development of the field."

For further information please contact:

Egdon Resources plc

Mark Abbott                                                                                           01256 702292

Buchanan

Richard Darby, Gabriella Clinkard                                                   020 7466 5000

Nominated Adviser and Broker - Seymour Pierce

Jonathan Wright(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 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.

 

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