12 May 2014 10:20
For Immediate Release 12 May 2014
EGDON RESOURCES PLC
("Egdon" or "the Company")
Press comment
Egdon Resources plc (AIM:EDR) notes the press commentary on Saturday 10 May and confirms it is in advanced discussions with Alkane Energy on a potential transaction involving an acquisition of Alkane's onshore shale assets for 40,000,000 ordinary shares in Egdon with an accompanying fundraising of £7 million at 20 pence per share for working capital purposes. The fund raise is expected to be implemented via a placing of £6.4 million and an open offer of £600,000.
The potential transaction and fundraising remain subject to finalisation. The potential transaction is expected to be conditional on approval of the fundraising by Egdon shareholders. An announcement will be made in due course.
For further information please contact:
Buchanan
Richard Darby, Anna Michniewicz 020 7466 5000
Nominated Adviser and Joint Broker - Cantor Fitzgerald Europe
David Porter, Tom Sheldon (Corporate Finance) 020 7894 7000
Richard Redmayne, Julian Erleigh (Corporate Broking)
Joint Broker - VSA Capital Limited
Andrew Monk (Corporate Broking) 020 3005 5000
Andrew Raca (Corporate Finance)
Notes to Editors:
Egdon Resources plc (LSE: EDR) is an established UK-based exploration and production company primarily focused on onshore exploration and production in the hydrocarbon-producing basins of the UK and France.
Egdon currently holds interests in 27 licences in the UK and France and has an active programme of exploration, appraisal and development within its balanced portfolio of oil and gas assets. Egdon is an approved operator in both the UK and France.
Egdon was formed in 1997 and listed on AIM in December 2004.