Oil and gas explorer and producer Egdon Resources is selling a 10% stake in the Keddington oil field to Aim-quoted Nautical Petroleum for £260,000.
Egdon will retain a 90% stake in Keddington, where it restarted production in July 2007. There could be 4m barrels of oil left in the field. A past well will be reopened and production will increase. There is also planning consent for an additional well.
Egdon is also considering using the gas associated with the oil production for generating electricity.
Egdon and Nautical already work together in Grenade in south west France.
Egdon increased its revenues from £41,000 to £1.21m in the year to July 2008, but the loss also increased from £365,000 to £2.38m. Net cash was £2.17m.
Much of the increase in revenues came from the Keddington field.
At 7.25p a share, Egdon is valued at £4.97m. The stake in Keddington is valued at £2.34m.
Production has started at Avington, where Egdon owns 20%. The well is producing around 300 barrels of oil a day.
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