Egdon Resources Agrees Farm-Out To Humber Oil & Gas On PEDL253 Licence

3rd Apr 2018 14:47

LONDON (Alliance News) - Egdon Resources PLC said on Tuesday that it has signed a farm-out agreement on the PEDL253 licence with Humber Oil & Gas Ltd.

PEDL253 is located in the South Humber basin and contains the drill-ready Biscathorpe prospect, where the Biscathorpe-2 conventional exploration well is planned to be drilled around the middle of the year.

Humber will purchase 5.0% of Egdon's interest in PEDL253 by paying its pro-rata share of the Biscathorpe-2 well costs plus an additional GBP10,000 per percentage point of interest acquired.

The company said that Humber will also acquire an additional 5.0% from Montrose Industries Ltd's interest in PEDL253 under the same terms.

Egdon will hold a majority interest in PEDL253 of around 36%, while Montrose will hold 22%, Union Jack Oil PLC 22%, and Humber 20%.

Egdon shares were trading 2.1% higher at 5.82 pence per share on Tuesday.

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Related Shares:

EDR.LUnion Jack