Egdon Resources plc (EDR) yesterday announced that it has completed the acquisition of the entire issued share capital of Yorkshire Exploration Limited (YEL). The company had already announced the agreement on 14 November 2014.
YEL is a private company, which holds an 8% interest in Petroleum Exploration and Production Licence PEDL068 in North Yorkshire and Cleveland in the Cleveland Basin. Egdon is operator of PEDL068 with a 40% interest.
As consideration for the acquisition, Egdon has issued 546,448 ordinary shares to the previous shareholders of YEL 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 0.25 per cent. of the enlarged share capital of the company. Application has been made for admission of these shares to trading on AIM, a sub-market of the London Stock Exchange, which is expected to become effective on 8 December 2014.
Licence PEDL068 contains the Kirkleatham gas field which is shut-in pending the potential drilling of a side-track well to target an undrained portion of the field up-dip from the existing producer well. The licence also contains the Westerdale/Ralph Cross gas discovery where planning consent is in place for an appraisal well, which is likely to be drilled in 2015/2016. Exploration in PEDL068 to date has concentrated on conventional Permian age carbonate gas plays but the licence may also contain other conventional and unconventional prospectivity.
Egdon estimates that the transaction will add approximately 0.70bcf of Best Estimate Contingent and Prospective Conventional Resources to Egdon’s resource inventory.
The current interests in PEDL068 are as follows:
Commenting on the acquisition, Mark Abbott, Managing Director of Egdon said:
"We are pleased to have completed this acquisition which adds to our existing interest in PEDL068 and adds incremental conventional resources and other prospectivity to the Company"