The assets of ERNV at completion are a 60% interest in the Navacelles Permit, a 40% interest in the Gex Permit and a 40% interest in the Gex Sud Permit Application.
In addition to the cash consideration, Egdon has also been granted options to acquire a 6% interest in the Gex Permit, a 6% interest in any permit to be issued pursuant to the Gex Sud Permit Application and a 9% interest in the Navacelles Permit.
These options are exercisable up to the later of two years from 23 June 2010 (or in the case of the Gex Sud Permit Application two years from any licence award) or 60 days following plugging and abandonment of the relevant drilled well or the completion of initial testing of the first well on each permit, subject to an end-stop date of 23 June 2015.
On exercise of any option, Egdon will pay to ERNV its pro-rata share of all costs incurred by ERNV on that permit together with the appropriate proportion of the original acquisition price.
Egdon will also provide eCORP with certain services in connection with the business and development of the permit interests under a technical services agreement.
