Alkane comments on completion of transfer of onshore shale gas business
Alkane Energy plc (AIM: ALK), is pleased to note the announcement made today by Egdon Resources Plc (“Egdon”) in which Egdon stated that it has received approval from DECC in relation to its acquisition of Alkane’s onshore shale gas interests (the “Acquisition”).
Accordingly, subject only to the admission of the ordinary shares of Egdon issued in connection with the transaction which is expected to occur on 12 June 2014, all conditions relating to completion of the Acquisition have been satisfied and Alkane will be issued 40,000,000 ordinary shares of Egdon as consideration for the Acquisition.
Neil O’Brien, CEO of Alkane Energy commented:
“As a result of this transaction Alkane has become a significant shareholder of one of the largest UK onshore oil and gas companies and has material exposure to over 140,000 acres of prospective shale gas acreage.
The Acquisition has provided immediate value to Alkane, whilst allowing the Company to share in the upside should any of Egdon’s licences prove to contain exploitable oil and gas reserves.”
Source: Alkane Energy plc