Completion of acquisition of interest in PEDL201
Further to the announcement made on 16 November 2016, Egdon Resources plc (AIM:EDR) is pleased to confirm that it has now completed the acquisition of an additional interest in PEDL201 in the Company's East Midlands core area.
Egdon has acquired an additional 12.5% interest in PEDL201 in the Widmerpool Gulf from Corfe Energy Limited for a consideration of 424,593 Ordinary Shares in the Company ("the Consideration Shares"). The value of the Consideration Shares is equivalent to £50,000 based on the average closing mid-price for the five days prior to the day of completion.
Accordingly Egdon has issued 424,593 Ordinary Shares to Corfe Energy Limited. The Consideration Shares represent 0.16 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 2 February 2017.
Following the issue of the Consideration Shares, the Company's issued share capital will consist of 259,404,176 Ordinary Shares, each carrying one voting right. The Company does not hold any Ordinary Shares in treasury. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company.
As a result of this transaction, Egdon now holds a 45.00% operated interest in PEDL201, a licence considered by Egdon to hold significant prospectivity for both conventional and unconventional resources. The acquisition adds a total of 2,471 net acres to Egdon's licence holdings.
Commenting on the acquisition, Mark Abbott, Managing Director of Egdon Resources plc, said:
"We are pleased to have now completed this acquisition which is in line with Egdon's stated strategy of enhancing our position in core areas where we see significant oil and gas potential."