Egdon Resources plc (AIM:EDR) is pleased to report that further to the announcement of 28 January 2011 it has now completed the acquisition from Valhalla Oil and Gas UK Limited (“Valhalla”) of their entire 50% interests in UK Petroleum Exploration and Development Licences (“PEDLs”) 180 and 181.
The consideration for the acquisition is the grant to Valhalla of a Net Profit Interest (“NPI”) of 10% of the assigned 50% interest in each of the licences.
PEDL’s 180 and 181 are located in the county of Lincolnshire and are operated by Europa Oil and Gas. They are situated adjacent to Egdon’s operated licences PEDL182 and PEDL241 where the Company holds a 50% interest. PEDL180 contains the Wressle Prospect which extends into PEDL182 where the Broughton oil discovery is located. This oil prone trend of structures is bounded to the north-west by the Crosby Warren producing oil field and the Brigg oil discovery to the south-east. PEDL181 contains a number of potential leads defined on 3D seismic data which will be further evaluated.
Both licences are subject to a drill or drop decision later this year.
Commenting on the acquisition Egdon’s Managing Director Mark Abbott said:
“We are pleased to have completed this acquisition which is in line with our UK onshore growth strategy. We are currently developing plans for possible 3D seismic acquisition over the Broughton-Wressle structures during 2011 to firm up potential drilling locations in this highly prospective trend.“