Egdon Resources will acquire the entire interest of Valhalla Oil and Gas in two onshore UK petroleum exploration and development licences (PEDLs).
Both firms signed an agreement for the transaction, which includes 50% of PEDL180 and 50% of PEDL181, located in the East Midlands Petroleum Province, Lincolnshire.
PEDL180, which lies south-east of the Crosby Warren producing oilfield and between oil discoveries at Brigg and Broughton, covers 100km² and contains the Wressle Lead, mapped as extending into Egdon's existing PEDL182.
PEDL181, which covers 540km², is located to the east of Egdon's existing licences and contains the Caistor Lead, as defined on 3D seismic data.
Egdon managing director Mark Abbott said the acquisition provides the company with access to further high potential acreage in one of its core exploration areas.