Exploration and production company buys out Yorkshire partner
EXPLORATION and production company Egdon Resources has bought out its minority partner on a Yorkshire gas project, Yorkshire Exploration Limited (YEL).
Egdon Resources, which is primarily focused on onshore exploration and production in the hydrocarbon-producing basins of the UK and France, will acquire YEL, 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.
YEL is owned and controlled by John Rix and his family members. Rix was a non-executive director of Egdon until his retirement from the board in late 2011.
The consideration for the acquisition is £133,058 and will comprise £75,000 to be satisfied by the issue of new Egdon shares to YEL at completion and the assumption of £58,058 of YEL debt.
Licence PEDL068 contains the Kirkleatham gas field and 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.
Mark Abbott, managing director of Egdon said: “The acquisition of YEL adds to our existing interest in PEDL068 and adds incremental conventional resources and other prospectivity to the company”
Egdon currently holds interests in 36 licences in the UK and France and has an active programme of exploration, appraisal and development within its balanced portfolio of oil and gas assets. It was formed in 1997 and listed on AIM in December 2004.
