Egdon Resources Share Discussion Threads

[joan1234] 29/5/2014 09:07

Union Jack has a stake in the planned Burton on the Wolds well which is also operated Egdon, and will follow Wressle.
By PLATTS
29 May 2014 09:02

[rogerlin] 29/5/2014 09:06

Wressle to spud in July.

[123qwer] 28/5/2014 13:38

so why has the price not shot up?

[pabloiom] 28/5/2014 10:22

60p here we come!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

www.shareprophets.advfn.com/views/5693/egdon-at-255p-worth-60p

[bashers2] 25/5/2014 09:25

Reference 'cheap US gas finding its way to UK' yes it is to a certain extent, but report on Friday out of US stating that the estimates for recoverable volume of oil and gas now found to be totally overblown!Couldn't find article this morning but it was on one of BB's.

[1desire] 24/5/2014 08:30

Fracking in Tory heartlands 'in national interest', says Michael Fallon as report reveals 4.4bn barrels of oil , UKOG, DOR, SOLO, EDR
By PLATTS
23 May 2014 22:53:08

[au24] 19/5/2014 14:15

If your so worried then why not sell up and leave EDR to those of us who have no doubt at all as to this being more than economically viable.
EDR Have big hitters aboard who have done the Maths.

[angus17] 19/5/2014 13:46

stockonomist

its a good point being raised in your Times issue.

It does add doubt as to whether a UK shale industry would be economically viable when the Yanks can produce it for what appears to be next to nothing.

[stockonomist] 18/5/2014 00:48

Cheap US Gas coming here will make expensive UK gas/fracking redundant

No wonder Dart are selling up...

[brahmsnliszt] 15/5/2014 11:04

Up she goes baby

[au24] 15/5/2014 10:58

'Its the Future' Shale the next big thing.

An easy 10 bagger IMO. EDR In the right place at the right time and gathering/gaining more licences too.

[ohisay] 15/5/2014 10:54

Shale popular apparently.!

[ohisay] 14/5/2014 10:18

MGW - good writeup.

Egdon Resources has done a deal with Alkane Energy whereby it has bought certain of its UK onshore assets for the payment of 40 million Egdon shares, giving Alkane 21.5% of Egdon going down to between 18 and 19% post dilution. At the same time Egdon is raising around £7m by way of a placing and an open offer at 20p which is a 7% discount, less if you believe that the deal had leaked, either way it is a very creditable discount.

Following this deal Egdon will have two slightly sub 20% holders in Alkane and Premier Oil and Alkane will have board representation. The acreage is to be split on a horizontal axis with Egdon taking the deeper and Alkane the shallower interests. This leaves the shale and conventional plays to Egdon and the shallower to Alkane.

The money raised will be needed in a number of ways, Egdon is doubling its shale gas acreage so will need a bigger head count, there will be licence fees for another ten licences and they will be doing more technical work across the portfolio and there is the 14th round to think about. The much delayed onshore licensing round is due to finally get under way in July of this year (or later on past DECC form!) and this deal puts Egdon in a very strong position to take advantage of the opportunities that will offer. Don't forget that the company is at the early stage of the exploration process and at the right time an exit route is envisaged to monetise what has been an exemplary creation of value. Should the 14th round and the attendant publicity bring in new, bigger international players I would expect Egdon to maybe take advantage of new players in the process and perhaps there might be a bigger, more tradeable market that would suit Egdon down to the ground. Egdon also has the conventional part of its portfolio to manage which brings balance and scope, a two well programme starting in June with Wressle and then Burton on the Wolds and the A prospect.

For Alkane this deal is most attractive, it provides a valuation of its unconventional assets not previously possible (although often speculated on) and it ensures that the company and its shareholders are able to participate in the upside should discoveries and production happen. I'm very surprised that the market has yet to push the Alkane price up as it now has a very strong traditional gas to power business growing rapidly which is now tied in to significant potential upside in a number of ways, after all, this is only the beginning of collaboration between the companies.

Overall I consider that investors should look at these two deals and realise that there are few listed opportunities to participate in what might be a significant onshore play in the UK and as and when the 14th Round comes up others may join in, this will have been the chance to get in early.

Tagged with: Alkane Energ
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[au24] 13/5/2014 18:38

Buy into both lovegod2 I have.

[lovegod2] 13/5/2014 13:50

what about IGAS ?

[au24] 13/5/2014 10:36

ONE of the largest

[brahmsnliszt] 13/5/2014 10:29

Up she goes baby

[ant15] 13/5/2014 10:26

Set to become the largest Shale Gas Operator in the UK!

[au24] 12/5/2014 10:41

Its the long term gains we will get that matter.

[brahmsnliszt] 12/5/2014 10:37

Back up n running. Though not running away

[whackford] 12/5/2014 10:18

EDR certainly keeping us waiting.

[au24] 12/5/2014 09:40

Is the likely outcome.