Egdon Resources PLC Acquisition of Aurora Production (UK) Limited
20 Diciembre 2022 - 01:00AM
RNS Non-Regulatory
TIDMEDR
Egdon Resources PLC
20 December 2022
20 December 2022
EGDON RESOURCES PLC
("Egdon" or "the Company")
Acquisition of Aurora Production (UK) Limited
Egdon Resources plc (AIM:EDR) is pleased to announce that it has
signed a conditional agreement to acquire the entire issued share
capital of Aurora Production (UK) Limited ("Aurora Production")
from Aurora Petroleum Limited (the "Vendor"). Aurora Production is
a private company, which holds an 18.75% interest in the Edgon
operated licence PL090 which contains the Waddock Cross oil field
and an 8.33% interest in the IGas operated licence PEDL070 which
contains the Avington oil field.
The consideration for this acquisition will be the assumption by
Egdon of all ongoing liabilities on these licences, including all
abandonment liabilities. However, as part of the transaction Egdon
shall receive a cash sum from the Vendor of GBP0.288 million which
reflects the current estimates in relation to these liabilities.
Aurora Production will at the completion of the transaction grant
Net Profit Interests to the Vendor of 10% on each of the licence
interests which, in the event that profitable production is
established, will result in the Vendor being reimbursed the sum it
gave Egdon to cover the abandonment liabilities for such
licence.
Aurora Production has accumulated upstream ringfenced tax losses
of ca. GBP90 million that should be available to offset tax on
future profits. The commercial date of the transaction will be 30
September 2022. The transaction is subject to approval of the
change of control by NSTA and the other licensees.
Egdon has an existing 55% operated interest in the Waddock Cross
oil field (PL090) which will increase to 73.75% on completion. In
addition, Egdon will increase its interest in the remaining part of
PL090 (excluding the Waddock Cross oil field) from 42.50% to
56.04%. Waddock Cross is currently shut-in. Independent reservoir
modelling has shown that a new horizontal well on the field could
yield commercial oil production (500-800 bopd). Given the
significant mean in-place oil volume of c. 57 million barrels, this
asset has been high graded by Egdon for redevelopment.
Egdon will increase its holding in the Avington oil field from
28.00% to 36.33%. Avington remains shut-in but planning consent to
restart production was granted on appeal in December 2021. The
forward plan is to redevelop the field during 2023 with longer term
plans to include establishing on site water handling
facilities.
Egdon estimates that the transaction covering both licences will
add approximately 0.614 million barrels of Best Estimate Contingent
and Prospective Resources of oil to its resource inventory.
Commenting on the acquisition, Mark Abbott, Managing Director of
Egdon said:
"This acquisition builds on our existing interests in the
shut-in Waddock Cross and Avington oil fields. Both assets have
active plans in place to rejuvenate oil production. The acquisition
therefore adds potential for near-term incremental production, adds
to our resource base and delivers substantial tax losses that may
be utilised to offset future taxes."
For further information please contact:
Egdon Resources plc
Mark Abbott, Martin Durham 01256 702 292
Buchanan
Ben Romney, Jon Krinks 020 7466 5000
Nominated Adviser & Joint Broker - WH Ireland Limited
Chris Hardie, Megan Liddell 020 7220 1666
Joint Broker & Financial Advisors - VSA Capital Limited
Andrew Monk (Corporate Broking) 020 3005 5000
Andrew Raca (Corporate Finance)
Notes to Editors:
Egdon Resources plc (LSE: EDR) is an established UK focused
energy company.
Egdon holds interests in 35 licences in the UK and has an active
programme of exploration, appraisal and development within its
portfolio of oil and gas assets. Egdon is an approved operator in
the UK. Egdon was formed in 1997 and listed on AIM in December
2004.
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