Egdon Resources plc has reached agreement on terms for the sale of a 10% interest in Licences PL090 and PEDL237 located in Dorset, to Union Jack Oil plc (Union Jack).

Under the terms of a Sale and Purchase Agreement (the "Agreement") Egdon's 100% subsidiary Dorset Exploration Limited has granted Union Jack an option (exercisable up to 31 July 2013) to acquire the licence interests for a cash consideration of £560,000, payable on completion. A £20,000 non-refundable deposit has been paid under the terms of the Agreement. This deposit will form part of the consideration should the option be exercised.

The transfer of interests will be subject to approval by the Department of Energy and Climate Change.

Tags: Egdon Resources Plc