Egdon reported the completion of the sale of a 10% interest in the Avington oil field under license PEDL070, for a consideration of £400,000 in cash.
Under the transaction, Egdon Resources Avington Limited ("ERA") has sold a 5% interest to IS E&P Limited and a 5% interest to IS NV Limited. The consideration paid by each company was £200,000 in cash and the assumption of their pro-rata shares of a Net Profit Interest ("NPI") payable to Heyco Energy Holdings S.L.
The Avington oil field is located in the County of Hampshire and is operated by Star Energy Oil UK Limited. Oil is currently produced from the Jurassic age Great Oolite reservoir from two wells, Avington-2Z and Avington-3Z.
Egdon retains an aggregate 26.67% interest in the license and the Avington oil field.
The proceeds of the sale will be utilized on Egdon's active UK and French exploration, appraisal and development program where the Company believes it can generate a better return on investment.
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