Egdon are in the process of massively diluting to get this...

Egdon are in the process of massively diluting to get this acreage from Alkane ; about a 50% dilution .

For the Egdon-Alkane deal to make sense the combined asset has to be worth more than the sum of the parts - "shale scale" .

A deal with Egdon might appeal to Igas for two reasons :-
- strengthens dominant position in Gainsborough Trough - a massive bet .
- hedges their bets incase PEDL181 has exceptional shale .

For Egdon shareholders it would expose them to acreage in other basins .

There are two outside chances Egdon could fund shale themselves ; by conventional exploration success onshore France or one of the big prospects in Hampshire/Dorset near the Wytch Farm oil field (so long as produced water can be disposed of) .

The endgame for Austin ?

That is the big question !