Egdon Resources plc (AIM:EDR) is pleased to announce the acquisition of an additional 5% interest in PEDL180 and PEDL182, which contain the Egdon operated Wressle oil discovery and Broughton North Prospect, from Celtique Energie Petroleum Limited.
Under the terms of the agreement Egdon will acquire an additional 5% interest in PEDL180 and PEDL182 from Celtique Energie Petroleum Limited for a deferred cash consideration of £0.417m payable on commencement of production (“First Oil”). The effective date for the transaction is 1 January 2018.
Union Jack Oil PLC (“UJO”, AIM: UJO) and Humber Oil & Gas Limited (“Humber”, private) will each also acquire 12.50% in both PEDL180 and PEDL182 from Celtique Energie Petroleum Limited on the same terms under separate deals.
Egdon will shortly submit a new planning application for the Wressle development which has the benefit of information from additional site investigation boreholes and two deeper cored boreholes to ensure it addresses in detail the matters highlighted by the Inspector in his Decision Notice to refuse the planning appeals in January 2018. An application to extend the current planning consent for the Wressle site was submitted on 13 April 2018.
The transaction is subject to approval from the Oil and Gas Authority. On completion, the interests in PEDL180 and 182 will become
Egdon Resources U.K. Limited (Operator) 30.00%
Europa Oil and Gas plc 30.00%
Union Jack Oil Plc 27.50%
Humber Oil & Gas Limited 12.50%
Mark Abbott, Managing Director of Egdon Resources plc, said:
“Today’s transaction underlines our confidence in the quality and deliverability of the Wressle project.
We have been able to add to our existing material interest in the licences with the consideration deferred to the point of revenue generation from the Wressle field. The transaction emphasises our strategy to achieve a balanced business comprised of revenue generating conventional assets to complement the high-impact UK unconventional licences within our portfolio.”