Egdon Resources extends deadline for farm-out deal

Egdon Resources updated the market on the exclusivity agreement over licences P1929 and P2304 with a “large, internationally recognised” exploration and production company on Monday, which it previously announced on 4 November.

The AIM-traded firm said itself and the counterparty had agreed to a short extension to the deadline, from 19 January, for the execution of a definitive farm-out agreement under the terms of the exclusivity deal.

It said the extension would run until 23 January, to provide time for the completion of the farm-in documentation.

Until the definitive agreement is signed, the board warned that no assurance could be given that a commercial transaction would ultimately be concluded with the counterparty.

“Having secured extensions to the licences during November 2019, we have made excellent progress in respect of agreeing the terms and preparing the documentation for a potential farm-in by the counterparty,” said managing director Mark Abbott.

At 1435 GMT, shares in Egdon Resources were down 3.62% at 5.06p.