Egdon Resources announced Monday that it has completed two separate farm-out agreements for License PEDL005(R), located in Lincolnshire, UK.
Under the farm-out terms to Terrain Energy Limited, Terrain gained an additional 20 percent interest in the Keddington oil field in return for paying 40 percent of the cost of a new appraisal well, which is expected to be drilled in the fourth quarter of 2015 as a side-track to the Keddington-4 well. As part of the agreement with Union Jack Oil plc, Union earned a ten percent interest in License PEDL005(R) in return for paying 20 percent of the cost of the Keddinton-4 side-track well and 20 percent of the cost of an exploration well on the Louth prospect.
Following the completion of the transaction Terrain Energy holds a 35 percent interest in the Keddington Field, Union Jack Oil and Nautical Petroleum Limited each hold a ten percent interest and Egdon is the operator with a 45 percent interest. With regards to the PEDL005(R) license, excluding Keddington, Terrain holds a 15 percent interest, Nautical and Union Jack each hold a ten percent interest and Egdon is the operator with a 65 percent interest.
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