18/12/2013 - 10:43

Eden patient on UK CSG sale

18/12/2013 - 10:43

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Eden Energy will continue to wait to sell its entire UK coal seam methane and shale gas portfolio for up to £11.5 million ($21 million), due to UK-based buyer Shale Energy failing to complete a £7 million capital raising for the purchase.

Eden patient on UK CSG sale
Exploration works at one of Eden's UK licenses

Eden Energy will continue to wait to sell its entire UK coal seam methane and shale gas portfolio for up to £11.5 million ($21 million), due to UK-based buyer Shale Energy failing to complete a £7 million capital raising for the purchase.

The sale is for 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.

Shale has advised that it hoped the capital raising will be completed within the following two weeks.

On September 17 the company announced it had struck a deal with Shale on better terms than a collapsed agreement it had with the company when it originally brokered a heads of agreement over the purchase of the UK assets back in May this year.

Then, on November 25, when Shale had not yet been able to raise the funds, Eden announced another extension to meet the contractual conditions until December 13, which again were not resolved.

Eden has not set a further deadline for the transaction to be completed and will wait to see if Shale can satisfy the conditions of the contract before a decision will be made whether or not to elect to terminate the contract.

 

 

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