Egdon Resources closes acquisition of additional interest in PEDL201 within East Midlands

Egdon Resources has completed the acquisition of an additional interest in PEDL201 within the company’s UK East Midlands core area, which was announced last November.

Egdon Resources managing director Mark Abbott said: “We are pleased to have now completed this acquisition, which is in line with Egdon’s stated strategy of enhancing our position in core areas where we see significant oil and gas potential.”

Egdon has secured an additional 12.5% interest in PEDL201 in the Widmerpool Gulf from Corfe Energy for 424,593 ordinary shares in the company.

The value of these shares is equivalent to £50,000 based on the average closing mid-price for the five days before the day of completion.

Egdon has accordingly issued 424,593 ordinary shares to Corfe Energy, which represent 0.16% of the enlarged share capital of the Egdon.

An application has been submitted for admission of the consideration shares to trading on AIM, which is likely to become effective on 2 February.

With the issue of the consideration shares, Egdon’s issued share capital will comprise 2.6 million ordinary shares, each carrying one voting right.

The company stated that it does not hold any ordinary shares in treasury.

With this deal, Egdon now holds a 45% operated interest in PEDL201.

Egdon considers the licence to hold huge prospectivity for both conventional and unconventional resources.

The acquisition adds 2,471 net acres to Egdon’s licence holdings.