Perth-based alternate energy explorer Eden Energy expects to start trading on the local market by March next year after it entered a deal to sell its stake in a Welsh coal bed methane project for over $5 million.
The company said it had entered into a conditional agreement to sell a 45 per cent interest in four exploration licences that contain the Coal Bed Methane and Abandoned Mine Methane assets in South Wales to an unnamed publicly listed UK energy utility.
The sale price is around $5.62 million, Eden said.
The company still retains a 5 per cent interest in the methane exploration licences plus a 50 per cent interest over all conventional oil, natural gas and shale gas contained within the area.
The deal is subject to the execution of a joint operating agreement and other associated agreements, regulatory approval and shareholder consent.
"The outcome of this transaction is that Eden will retain a significant part of all of its core UK energy assets plus raise approximately $5.623 million to fund its significantly reduced cash flow requirements, without shareholders suffering any dilution," Eden said.
Eden will re-list on the Australian stock exchange once the methane sale is finalised and the $2 million sale of the HyRadix/Eden Cryogenics and CTS is settled.
Eden said it anticipates relisting by very early March.
Shares in Eden have been suspended from trade since the end of September, and last traded at 14.5 cents.
