Egdon Resources has reached an agreement to acquire the entire issued share capital of Yorkshire Exploration Limited (YEL). YEL is a private company, which holds an 8% interest in Petroleum Exploration and Production Licence PEDL068 in North Yorkshire and Cleveland in the Cleveland Basin. Egdon is operator of PEDL068 with a 40% interest.
The consideration for this acquisition is £133,058 and will comprise £75,000 to be satisfied by the issue of new Egdon shares to YEL at completion and the assumption of £58,058 of YEL debt. The number of consideration shares will be calculated based on the average closing mid-price for the five days prior to the day of completion. The commercial date of the transaction is 1 August 2014. The transaction is subject to approval of the change of control by DECC.