Egdon Resources plc (AIM:EDR) notes the announcement made today by Union Jack Oil plc (“Union Jack”) regarding the posting of its AIM Admission Document to shareholders.
In today’s announcement Union Jack state with respect to various agreements with Egdon which were previously announced on 5 March and 14 May 2013:
- The Union Jack Board does not intend to exercise its option to acquire an interest in Wessex Basin Licences PL090 and PEDL237. This option will expire on 31st July 2013 under the terms of the Sales & Purchase Agreement with Dorset Exploration Limited (“Dorset”), the 100% owned subsidiary of Egdon. The £20,000 deposit paid by Union Jack under the terms of the Agreement will be retained by Dorset.
- The Union Jack Board does not intend to exercise options to acquire from Egdon an additional 5% interest in East Midlands Licence PEDL241 (North Kelsey) or a 10% interest in East Midlands Licence PEDL005R (North Somercotes). These options will expire on 31st July 2013 under the terms of the Letter of Intent Agreement between Egdon and Union Jack.
- Egdon and Union Jack have entered into new Agreements providing Union Jack with the option to withdraw from its obligations under Farm-out Agreements for East Midlands Licences PEDL241 (North Kelsey) and PEDL253 (Biscathorpe). If Union Jack elects to exercise the withdrawal option(s), it will pay a fee of £5,000 for each (£5,000 and £3,000 respectively net to Egdon) and its interest in the respective Licence(s) will be terminated.Commenting on Union Jack’s announcement, Mark Abbott, Managing Director of Egdon said:
“It is obviously disappointing to Egdon that Union Jack is not in a position at this time to exercise the options with respect to either the purchase of interests in the Wessex Basin or certain farm-outs in the East Midlands. However, Egdon will now retain a 55% interest in the Waddock Cross oil field where planning consent has recently been received and we look forward to updating shareholders of commencement of production and revenues from the field in the next few months.”