Egdon to Raise Funds for Gas Storage Growth
Egdon Resources Plc (AIM: EDR), the UK focused energy company, is pleased to announce the placing of 6,315,790 new ordinary shares of 1p each at 190 pence per share (the "Placing Shares") to raise £12 million before expenses. The shares were placed by Seymour Pierce Limited with new and existing institutional investors.
In addition, 1,000,000 shares have been placed at 190p per share by Seymour Pierce on behalf of each of Mark Abbott and Andrew Hindle, Joint Managing Directors, following the exercise by each of them today of their remaining 1,000,000 options in the Company. Following the placing, the Company will have 65,465,764 ordinary shares in issue.
Application has been made for the shares to be admitted to AIM and admission of the shares is expected to be on or around 3 November 2006.
The net proceeds of the Placing receivable by the Company, which are expected to be £11.52 million, will provide equity capital for the Company to enable it to commence construction of the proposed Portland gas storage facility immediately upon award of planning permission. This will provide funds to develop further storage opportunities both in the UK and internationally, and fund the 2007 exploration and appraisal drilling program.
Commenting on the placing, Philip Stephens, Chairman of Egdon, said:
"The placing provides funding for Egdon to continue the development of its gas storage business as well as continue its successful drilling program on the UK onshore and France. I am delighted that the placing has been completed and am pleased to welcome a number of new investors to our shareholders register."
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