EDR.L Share News (EDR)

It has taken around six months for negotiations to be completed but the transfer of assets from EnCore Oil to Egdon Resources is going ahead.Egdon is to acquire EnCore's interest interest in nine onshore UK licences, two onshore French licences and an interest in the Ceres gas field in the southern part of the North Sea.In return for handing over the assets EnCore will receive 39.2m shares in Egdon, representing just under 30% of the issued share capital of Egdon as enlarged by the share issue and a placing of shares from which Egdon has conditionally raised £2m. Encore will also receive £100,000 in cash from Egdon.The total consideration values the assets at about £5m.The company issued 16m ordinary shares which have been conditionally placed at a price of 12.5p each. The funds from the placing will be used to finance additional near-term commitments tied to developing the enlarged Egdon business.'The acquisition of these assets from EnCore provides an excellent strategic fit with Egdon's existing portfolio and will result in an increase in near-term cash flow from the Ceres field, a more material interest in Egdon's operated Kirkleatham gas development and access to an expanded opportunity base in the UK and France from which to develop and grow our business over the coming years,' said Egdon's managing director, Mark Abbott.As part of the deal EnCore will have the right to appoint a non-executive director to the board of Egdon for a period of five years after completion of the transaction, provided that EnCore keeps its stake on or above 15%.