Further to the announcement made on 21 June 2012, Egdon Resources plc (AIM:EDR) is pleased to announce that it has completed the acquisition of the entire issued share capital of Dorset Exploration Limited (“DEL”). DEL is a private company which holds 10% interests in Production Licence PL090 and Petroleum Exploration and Production Licence PEDL237, both located in the county of Dorset. Egdon Resources U.K. Limited is operator for both these Licences with a 45% interest in each.
As consideration for the Acquisition, Egdon has today issued 1,223,242 Ordinary Shares (“the Consideration Shares”) to the previous shareholders of DEL which include Mr. John Rix who was a non-executive Director of Egdon until his retirement from the Board in late 2011. The issued shares represent 0.93 per cent. of the enlarged share capital of the Company. Application has been made for admission of the Consideration Shares to trading on AIM, which is expected to become effective on 3 August 2012. The total number of Egdon Ordinary Shares in issue is now 132,192,336. Therefore, the total number of voting rights in the Company is 132,192,336.
Licence PL090 contains the Waddock Cross Oil Discovery, where Egdon intends to progress with a planning application for the development of the field, and a number of other prospects. In PEDL237 the licence group has identified and delineated a potentially commercial accumulation of oil which was encountered in the 1959 Langton Herring North-1 well but may not have been adequately tested, and has mapped a number of structural prospects and leads at the level of the Sherwood Sandstone, the primary reservoir at the Wytch Farm oilfield. The licence group plans to delineate these structures, which extend into PL090, by reprocessing existing vintage 2D seismic data and/or acquiring new seismic, most likely 3D, with a view to promoting at least one into a viable, drillable prospect.
Egdon estimate that the transaction will add an estimated 11 mmbo of Best Estimate Prospective Resources to Egdon’s resource inventory.
The interests in PL090 and PEDL237 are as follows:
|Egdon Resources U.K. Limited (operator)||45.00%|
|First Oil Expro Limited||26.25%|
|Aurora Exploration (UK) Limited||18.75%|
|Dorset Exploration Limited||10.00%|
Commenting on the acquisition Mark Abbott, Managing Director of Egdon said:
“We are pleased to have completed this acquisition which increases our interest in these existing prospective Egdon operated licences. The transaction adds 11 million barrels of prospective resources to our prospect inventory and increases our interest in the Waddock Cross oil discovery where we are now in the process of developing a planning application for development of the field.”