Eden Energy to Spinout UK CBM-Shale Gas Projects

Eden Energy Ltd plans to spinout its’ wholly owned UK coal seam methane/shale gas subsidiary, Eden Energy (UK) Ltd into a new proposed ASX listing to be called Adamo Energy Ltd.

Eden Energy (UK) Ltd would hold a 50% interest in 17 licenses and a 100% interest in 3 licenses, approximating an total area of 2,100km2 (510,000 acres) in South Wales, Bristol and Kent.

This will result from Eden UK having agreed to buy back the 45% interest in the coal seam methane rights in two licenses that it sold in 2008 and to acquire a 100% interest in three additional licenses in south Wales and completing its remaining farm-in obligations in the original joint ventures.

Independently reported Shale Gas Unrisked Prospective Mean Resources GIIP for part of the license area, of which Eden holds 50%, stand at 49.8 TCF.

The new company would propose a minimum capital raising of A$10.0 million, with present shareholders of Eden Energy Ltd offered a priority entitlement

Eden said that the spinout would be undertaken as soon as it is deemed that the market conditions are suitable.

Source: Eden Energy