The Directors of Egdon Resources plc are pleased to announce that the company has completed the acquisition of YCI Resources Limited (“YCIR”) from the Heyco Energy Group.
As previously reported the consideration for the transaction is the issue to Heyco International, S.L. (“Heyco”) of 6,861,434 Ordinary shares in Egdon. Application has been made for the consideration shares to be admitted to AIM and the shares are expected to be admitted on 18th March 2009.
Following the admission of these shares Egdon Resources plc will have a total of 75,475,774 Ordinary Shares in Issue. Heyco will hold 9.1% of the enlarged share capital of Egdon.
Egdon has also granted Heyco a Net Profit Interest (“NPI”) on current and future production from licences PEDL069 and PEDL070. The NPI, which is related to oil price, will range between 5% and 10% of Egdon’s net revenues realised from these licences after subtracting allowable costs.