Egdon Resources has reached agreements to farm-out 10% in its Nottinghamshire licences PEDL118 and PEDL203 to subsidiaries of Angus Energy. Angus is a private Scottish registered company which is looking to develop a portfolio of onshore UK producing assets.
In PEDL118, Angus Energy Eakring Development Limited will earn a 10% interest in the licence in return for paying 20% of the costs of the currently drilling Dukes Wood-1 well. As part of the agreement, Egdon has also granted Angus an option to acquire up to a further 10% interest on commencement of drilling of the second well. In consideration, Angus will carry Egdon on the same terms for this second well.
In PEDL203, Angus Energy Kirklington Development Limited will earn a 10% interest in return for paying 20% of the cost of the forthcoming sidetrack of the Kirklington-2 well.
Following completion, Egdon will hold a 65% operated interest in both licences.
The transaction is subject to regulatory approval by the Department of Energy and Climate Change.
