14th Nov 2014 09:14
LONDON (Alliance News) - Egdon Resources PLC Friday said it is to acquire a private company, owned by a former non-executive director, which has an 8% stake in a petroleum exploration and production licence in North Yorkshire and Cleveland in the Cleveland Basin.
UK-based exploration and production company Egdon Resources operates the petroleum exploration and production licence, known as PEDL068, and has a 40% stake in it.
Egdon will pay GBP133,058 for Yorkshire Exploration Ltd, which is owned and controlled by John Rix and his family members, in a combination of new shares for GBP75,000 and taking on GBP58,058 of the acquisition's debt.
Rix was a non-executive director of Egdon until his retirement from the board in late 2011.
Licence PEDL068 contains the Kirkleatham gas field which is shut-in pending the potential drilling of a side-track well to target an un-drained portion of the field up-dip from the existing producer well," Egdon said in a statement.
"The licence also contains the Westerdale/Ralph Cross gas discovery where planning consent is in place for an appraisal well, which is likely to be drilled in 2015/2016. Exploration in PEDL068 to date has concentrated on conventional Permian age carbonate gas plays but the licence may also contain other conventional and unconventional prospectivity," Egdon said.
Egdon said expects the deal to add about 0.70 billion cubic feet of Best Estimate Contingent and Prospective Conventional Resources to its resource inventory.
Sterling Resources (UK) Ltd has a 47% stake in PEDL068, while Montrose Industries Ltd holds the remaining 5%.
Egdon shares were up 3.7% at 14.00 pence on Friday.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
EDR.L