17/09/2013 - 09:19

Eden Energy sells UK assets for $19.5m

17/09/2013 - 09:19

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Eden Energy sells UK assets for $19.5m
Exploration works at one of Eden's South Wales petroleum licences.

Perth-based clean energy firm Eden Energy has rekindled the sale of its coal seam methane and shale gas portfolio in the UK, announcing it has struck a deal to sell the assets on better terms than a sale transaction which collapsed in August.

Eden Energy said today it had reached agreement with the previous intended buyer, unlisted London company Shale Energy plc.

Shale Energy will pay Eden a total of $19.5 million in shares and cash as consideration for the projects, which include 17 petroleum and development licences in England and South Wales, in which Eden owns a 50 per cent stake, as well as a 100 per cent interest in another licence in South Wales.

The new agreement includes a non-refundable $95,000 deposit, an additional $1.99 million cash payment at settlement, and a separate $416,000 placement for Shale Energy priced at 1.1 cents per Eden share.

Eden will also receive a 29.9 per cent interest in Shale Energy on completion of the transaction.

The original agreement was terminated last month after Shale Energy was unable to meet one of the conditions on time.

“We have reinstated our relationship with Shale Energy but on revised terms (that) will inject approximately an additional $693,000 cash into Eden plus a further $1.7 million worth of shares in Shale compared to the original May deal,” chairman Greg Solomon said.

Eden’s stock was up 36.4 per cent at 9:11AM, WST, trading at 1.5 cents. 

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