Egdon Resources Completes Sale of French Assets

Egdon Resources has announced the completion of the sale of Egdon Resources (New Ventures) (ERNV), the holder of certain of Egdon's permit interests in France, to eCORP Oil and Gas UK.

The assets of ERNV at completion are a 60% interest in the Navacelles Permit, a 40% interest in the Gex Permit and a 40% interest in the Gex Sud Permit Application. Egdon will also provide eCORP with certain services in connection with the business and development of the Permit Interests under a Technical Services Agreement.

In addition to conventional oil and gas prospects the permits involved in the proposed deal all contain potential shale-gas resources, which are a key focus for eCORP.

Commenting on the completion of the disposal of ERNV, Mark Abbott, Managing Director of Egdon said:

'The sale of ERNV to eCORP crystallises tangible value from these early-stage exploration projects and significantly strengthens Egdon's balance sheet. The cash generated from this transaction gives us the opportunity to accelerate activity on a number of our projects including a renewed focus on higher potential exploration projects. We are also better positioned to take advantage of any acquisition opportunities which may arise. Egdon retain access to upside value in these licences through the Back-In Option and we look forward to assisting eCORP through the provision of technical services in the exploration of the conventional and shale-gas potential of the ERNV permits.

Source: Egdon Resources Read More About The Transaction Here