Egdon Resources Plc, the independent on-shore UK focused energy company, has today sent to shareholders documentation in connection with the proposed reorganisation and demerger of Egdon into two new AIMquoted companies.

The Company proposes to demerge its oil and gas business and gas storage business into two new AIM-quoted companies

The oil and gas business will remain known as Egdon Resources plc (“New Egdon”) (and will trade on AIM under the symbol ‘EDR’) and the gas storage business will be known as Portland Gas plc (“Portland Gas”) (with the symbol ‘PTG’)

Each existing shareholder in the Company will receive one share in each of New Egdon and Portland Gas for every share held in the Company

Philip Stephens, Chairman, said, “The oil and gas business and the gas storage business have both contributed to the growth of the Company since listing on AIM in 2004. The Board believes that it is now the right time to separate these businesses to enhance their future potential.

“The gas storage business now has sufficient critical mass and growth momentum to become independent of the oil and gas business and the Board now feels able to recommend the demerger to enable the two businesses to operate as separate groups.”

Tags: Egdon Resources Plc, Portland Gas plc