Egdon Resources plc completes acquisition of Onshore License Interests from Valhalla Oil and Gas UK Limited

Egdon Resources Plc Monday announced the completion of its acquisition of Onshore License Interests from Valhalla Oil and Gas UK Limited. The completion follows Egdon Resources’ announcement of 28 January 2011 over its acquisition from Valhalla Oil and Gas UK Limited of their entire 50% interests in their UK Petroleum Exploration and Development Licenses.

The acquisition is for a consideration of a grant to Valhalla of a Net Profit Interest of 10% of the assigned 50% interest in each of the licenses. The Valhalla Petroleum Exploration and Development Licenses are located in the county of Lincolnshire and are operated by Europa Oil and Gas.  They are situated adjacent to Egdon’s operated licenses Petroleum Exploration and Development Licenses 182 and 241 where the Company holds a 50% interest.  

Petroleum Exploration and Development Licenses 180 contains the Wressle Prospect which extends into Petroleum Exploration and Development Licenses 182 where the Broughton oil discovery is located.  This oil prone trend of structures is bounded to the north-west by the Crosby Warren producing oil field and the Brigg oil discovery to the south-east.  Petroleum Exploration and Development Licenses 181 contains a number of potential leads defined on 3D seismic data which will be further evaluated.  
 
Both licenses are subject to a drill or drop decision later this year. Commenting on the acquisition Egdon’s Managing Director Mark Abbott said the acquisition of the Valhalla licenses is in line with Egdon’s UK onshore growth strategy.  Egdon Resources is currently developing plans for possible 3D seismic acquisition over the Broughton-Wressle structures during 2011 to firm up potential drilling locations in this highly prospective trend, he said.

Egdon Resources plc is an exploration and production company focused on the oil and gas producing basins of the onshore UK and mainland Europe. The Company was awarded its first license in the 8th Onshore Licensing Round in 1998 and became an operator in 2000, the same year that the company moved onto the OFEX market. In January 2008 Egdon demerged its gas storage business, Portland Gas plc (now renamed Infrastrata), and again became a focused exploration and production business.

Valhalla concentrates on identifying and exploiting oil and gas opportunities with proven but untapped potential. Valhalla's current geographical focus is on Europe and North Africa.

15th March 2011