EnCore Oil announced that it sealed an agreement with Egdon Resources for the sale of its UK and French onshore property and a share in the UK offshore Ceres gas field.
Egdon will issue 39.2 million shares to EnCore and its subsidiaries, equivalent to almost 30% of its enlarged share capital. Egdon will also pay EnCore £100,000 on completion of the sale of the subsidiary holding the French licenses.
EnCore will provide Egdon technical, commercial and accounting services in return and to be charged on a day-rate basis and a £1.5 million loan, available for a two-year period from the completion of the take-over at 10% interest or a 5% margin on LIBOR, whichever is greater.
Egdon shareholders still to give their approvals, as the transfer is a subject to other conditions and regulatory.