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The acquisition of the AIM-listed UK oil and gas company will see Egdon delist from AIM and become integrated into the expanding portfolio of Petrichor's US-based owner, HEYCO Group.
Fieldfisher has advised Petrichor Partners LP on a recommended all-cash takeover of UK oil and gas producer and explorer Egdon Resources PLC for £26.6 million.
Petrichor is a partnership of which the general partner HEYCO International, Inc., is a wholly owned subsidiary of HEYCO Energy Group, Inc. HEYCO Group is an upstream energy portfolio group that delivers strategy, sophisticated technology and capital to oil and gas exploration projects in the US and Europe.
HEYCO Group is privately owned by members of the Yates family of south-eastern New Mexico, US, who have been active in the oil and gas industry since the 1920s.
Egdon operates projects throughout the UK, in the North of England, the North Sea, the South of England and the East Midlands.
Through Petrichor and other entities, HEYCO Group has invested in and provided technical advice to Egdon for more than two decades and since 2016 has been a substantial shareholder in Egdon.
The acquisition of Egdon adds to HEYCO Group’s expanding portfolio in Europe following the acquisition of a gas field in Northern Spain and the opening of a Madrid office in 2022.
HEYCO Group believes Egdon is strategically positioned to contribute to the UK's future energy needs, with its conventional projects as well as with opportunities for gas storage, hydrogen, geothermal and renewable generation.
The acquisition will be effected by a scheme of arrangement under the Companies Act and subject to shareholder approval and Court approval (and certain conditions and terms set out in the Scheme Document, including a written confirmation from the NSTA that it does not intend to revoke any of the licences or seek further changes of control of Egdon).
The Fieldfisher team advising Petrichor was led by corporate partner Melanie Talbot from the firm's Equity Capital Markets Team.
Commenting on the takeover, Melanie Talbot said:
"This is a significant transaction that sets out a new future for an established UK oil and gas producer.
"As the UK oil and gas industry moves through the energy transition phase, we expect to see more deals aimed at bringing strategic direction and capital to the sector with a focus on a sustainable future."
Melanie was assisted by Head of Oil and Gas Paul Stockley, Corporate Associate Oliver Perkins and trainee Katherine Raw-Rees, with options advice provided by Equity Incentives Partner Mark Gearing and Solicitor Jessica Kilkelly.