Egdon Resources buys additional stake in East Midlands licence

AIM-listed oil and gas explorer Egdon Resources has bought the additional stake in an East Midlands licence from Corfe Energy for £50,000.

The company bought an additional 12.5% interest in PEDL201 in the Widmerpool Gulf from Corfe Energy for £50,000 in shares, subject to approval from the Oil & Gas Authority, with the number of shares to be calculated based on the average closing mid-price for the five days before completion of the deal.

It will have a 45% operated interest in the licence, which is considered by the company to be prospective for conventional and unconventional resources, and this will add 2,471 net acres to the company’s licence holdings.

Mark Abbott, managing director of Egdon Resources, said the acquisition is consistent with the company’s strategy of enhancing its position in core areas for significant oil and gas potential.

Shares in Egdon Resources were up 1.02% to 14.90p at 0806 GMT.