Posting of Demerger Documents

Egdon Resources PLC 09 November 2007 Immediate Release. 9 November 2007 Egdon Resources Plc (the 'Company') Posting of Reorganisation and Demerger Documents Egdon Resources Plc (the 'Company' or 'Egdon'), the independent on-shore UK focused energy company, is pleased to announce that it has today sent to shareholders documentation in connection with the proposed reorganisation and demerger of Egdon into two new AIM-quoted companies. • The Company proposes to demerge its oil and gas business and gas storage business into two new AIM-quoted companies • The oil and gas business will remain known as Egdon Resources plc ('New Egdon') (and will trade on AIM under the symbol 'EDR') and the gas storage business will be known as Portland Gas plc ('Portland Gas') (with the symbol 'PTG') • Each existing shareholder in the Company will receive one share in each of New Egdon and Portland Gas for every share held in the Company Philip Stephens, Chairman, said 'The oil and gas business and the gas storage business have both contributed to the growth of the Company since listing on AIM in 2004. The Board believes that it is now the right time to separate these businesses to enhance their future potential. 'The gas storage business now has sufficient critical mass and growth momentum to become independent of the oil and gas business and the Board now feels able to recommend the demerger to enable the two businesses to operate as separate groups.' Enquiries: Egdon Resources Plc Mark Abbott, Joint Managing Director 01256 702 292 Andrew Hindle, Joint Managing Director 0208 332 1200 Buchanan Communications Ben Willey 020 7466 5000 Nicholas Melson 020 7466 5000 Seymour Pierce Limited Jonathan Wright 020 7107 8000 Sarah Jacobs 020 7107 8000 Proposed Reorganisation and Demerger The Board of the Company believes that it is in the interests of Egdon Shareholders for investors to hold shares in two separate AIM companies respectively focused on the activities of the oil and gas business ('New Egdon') and the gas storage business ('Portland Gas'). The growth potential of both businesses will be more transparent to investors as separate AIM companies. Additionally, should equity fundraising be appropriate to fund the organic or acquisitive growth strategies of either company, the Directors believe that this may be more easily achieved if each company is clearly focused on one activity with an appropriate valuation. The gas storage business now has sufficient critical mass and growth momentum to become independent of Egdon and the Board now feels able to recommend the demerger to enable the two businesses to operate as separate groups. Under the terms of the proposed reorganisation and demerger, each Egdon shareholder will receive: for each Egdon share one share in each of New Egdon and Portland Gas Application will be made for the entire issued share capital of both New Egdon and Portland Gas to be admitted to trading on AIM and it is expected that dealings in both companies will commence on 16 January 2008. Posting of documents On 6 November 2007, the High Court of Justice of England and Wales (the 'Court') made an order, in connection with the proposed demerger that the Company may convene a Court Meeting to be held on 6 December 2007 at 11.00a.m. and an Extraordinary General Meeting ('EGM') of Egdon to be held on 6 December at 11.15a.m. (or as soon thereafter as the Court Meeting concludes or is adjourned). A circular containing, inter alia, details of the reorganisation and demerger, the scheme of arrangement to effect the reorganisation (the 'Scheme'), notices of the meetings, a timetable of principal events and details of the action to be taken by Egdon Shareholders, as well as Admission Documents for New Egdon and Portland Gas have today been posted to all Egdon shareholders (the 'Scheme Documents'). The Report and Accounts for the year ended 31 July 2007 has also today been posted to Shareholders along with notice of the Company's annual general meeting which will be held on 6 December 2007 at 11.30 a.m. at the offices of Norton Rose LLP, 3 More London Riverside, London SE1 2AQ. All these documents can be viewed on the Company's website at www.egdon-resources.com and are also available (during normal business hours) for inspection at the offices of Norton Rose LLP, 3 More London Riverside, London SE1 2AQ until the expiry of one month following Admission of New Egdon and New Portland. Court Meeting and EGM The demerger requires approval of the Egdon Shareholders at the Court Meeting and the EGM. Both meetings will take place at the offices of Norton Rose LLP, 3 More London Riverside, London SE1 2AQ. Suspension of trading and Cancellation of Admission Application will be made to the London Stock Exchange for the suspension of trading in Egdon shares at 7.00a.m. on 15 January 2008 and therefore the last day of dealings in Egdon shares will be 14 January 2008. Application will also be made to the London Stock Exchange for cancellation of admission to trading on AIM of the Egdon Shares conditional upon the Scheme becoming effective. It is anticipated that cancellation of admission to trading will take effect on 16 January 2008. Expected Timetable of Principal Events Latest time for receipt by the Registrar of blue form of 11.00a.m. on 4 December 2007 proxy for the Court Meeting Latest time for receipt by the Registrar of white form of 11.15 a.m. on 4 December 2007 proxy for the Extraordinary General Meeting AGM Proxy return 11.30 a.m. on 4 December 2007 Court Meeting 11.00a.m. 6 December 2007 Extraordinary General Meeting 11.15a.m. on 6 December 2007 Annual General Meeting 11.30 a.m. on 6 December 2007 The following times and dates are indicative only and will depend, amongst other things, on the dates upon which the Court sanctions the Scheme and whether the Conditions relating to the demerger are either satisfied or, if capable of waiver, waived. Court Hearing to sanction the Scheme of Arrangement 14 January 2008 Last day of trading on AIM for Egdon Shares 14 January 2008 Latest time for the registration of transfers of Egdon 6.00p.m. 14 January 2008 Shares prior to the Demerger Scheme of Arrangement becomes effective 7.00a.m. on 15 January 2008 Court hearing to confirm the New Egdon Reduction of 15 January 2008 Capital Demerger becomes effective By 7.30a.m. on 16 January 2008 Admission of shares of Egdon Resources Plc to trading 16 January 2008 cancelled Dealings in New Egdon Shares and Portland Gas Shares 8.00a.m. on 16 January 2008 commence on AIM Crediting of New Egdon Shares and Portland Gas Shares to 8.00a.m. on 16 January 2008 CREST accounts Despatch of certificates for New Egdon Shares and By 25 January 2008 Portland Gas Shares This information is provided by RNS The company news service from the London Stock Exchange
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