Acquisition

RNS Number : 8212O

Egdon Resources PLC

13 March 2009

 



For Immediate Release

13 March 2009

EGDON RESOURCES PLC 

('Egdon' or 'the Company')

Completion of acquisition of YCI Resources Limited

The Directors of Egdon Resources plc are pleased to announce that the company has completed the acquisition of YCI Resources Limited ('YCIR') from the Heyco Energy Group.

As previously reported the consideration for the transaction is the issue to Heyco International, S.L. ('Heyco') of 6,861,434 Ordinary shares in Egdon.  Application has been made for the consideration shares to be admitted to AIM and the shares are expected to be admitted on 18th March 2009.

Following the admission of these shares Egdon Resources plc will have a total of 75,475,774 Ordinary Shares in Issue. Heyco will hold 9.1% of the enlarged share capital of Egdon.

Egdon has also granted Heyco a Net Profit Interest ('NPI') on current and future production from licences PEDL069 and PEDL070. The NPI, which is related to oil price, will range between 5% and 10% of Egdon's net revenues realised from these licences after subtracting allowable costs. 

For further information please contact:

Egdon Resources plc Mark Abbott Managing Director	01256 702292
Buchanan Communications Ben Willey, Miranda Higham	020 7466 5000
Nominated Adviser and Broker - Seymour Pierce Richard Redmayne, Jonathan Wright, Sarah Jacobs	020 7107 8000

Company Background

Egdon Resources plc 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 mainland Europe.  

Egdon holds interests in twenty-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 currently has production from the Keddington and Avington oil fields. Further oil and gas production is anticipated from Kirklington, Kirkleatham, Waddock Cross, Eakring-Dukes Wood during the next twelve months.

Egdon Resources plc listed on AIM in January 2008, following the demerger of its gas storage business, Portland Gas plc. The pre-demerged business was formed in 1997 and listed on AIM in December 2004.

YCI Resources Limited

YCI Resources Limited is a UK registered private company whose principal asset is a 16.667% interest in PEDL070, which contains the Avington oil field and is located in the Weald Basin of Southern England. YCIR also has a 33.334% interest in adjacent licence PEDL069 which Egdon maps as containing a possible northerly extension to the Avington field. This transaction will increase Egdon's interests to 36.667% in PEDL070 and to 66.667% in PEDL069.

Avington

The Avington oil field was discovered in 2003 with the drilling of the Avington-2 well which tested light oil from the Jurassic age Great Oolite reservoir. During 2007 the drilling and extended production testing of the Avington-3z well established the commerciality of the field with production of 63,000 barrels of oil during the six months test. During 2008 the operator, Star Energy, obtained the required planning and other consents to improve the surface facilities and restart production from the Avington-3z and Avington-2z wells. In addition consent was granted to drill two further appraisal wells on the accumulation. As previously reported by the Company, production commenced at Avington on 23 January 2009 at an initial free-flowing rate of around 300 barrels per day. The Avington-3z well has subsequently been completed with a down-hole pump and is currently on production.

In accordance with AIM rules - guidance for mining, 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 22 years experience.

 

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