DTI Approves Sale of Bow Valley's UK Onshore Assets
Bow Valley Energy reports that the sale of its equity interest in three UK onshore licenses in the Wessex Basin to Egdon Resources has been approved by the UK Department of Trade and Industry and Egdon's shareholders. Bow Valley's interests in the three licenses, prior to the assignment, are PL090 (41.66%), PEDL048 (45%) and PEDL072 (37.5%). The Sale and Purchase documents are in the process of being signed.
The total consideration for the sale of the interests in the three licenses is pnds stlg 500,000 in the form of a payment of pnds stlg 150,000 upon signing the Sale and Purchase Agreement and the issuance upon completion of a convertible unsecured debenture with a face value of pnds stlg 350,000 in favor of Bow Valley. Egdon will have until December 31, 2004 to redeem the debenture for cash; during which time Bow Valley will be granted the right to convert the debenture into 1,627,907 ordinary shares of Egdon. In addition, Bow Valley will retain a Gross Over-Riding Royalty on the assigned Bow Valley interests of 5% on production from below the Jurassic Formations and 3% on production from and above the Jurassic Formations.
Bow Valley Energy Ltd. is an oil and natural gas exploration, development and production company with operations in western Canada and the U.K sector of the North Sea.