Hess takes a bigger bite in France

Grabbing another piece: Hess is farming into a 35% stake in the Mairy permit in France, bringing its total equity up to 85%

AFP/SCANPIX

Danica Newnham

 22 January 2013 08:36 GMT

US independent Hess has started drilling into an exploration well in the Mairy permit onshore France as it moves to acquire a larger stake in the block.

London-listed Egdon Resources reported on Tuesday that it had finalised a farm-out agreement with Hess under which the latter company will acquire an unencumbered 35% interest in the permit, bringing its total stake to 85%.

Egdon will retain a 15% interest in the permit and be carried through the completion of the Huiron-1 well to a capped cost level of $10.25 million.

In addition, Hess is expected to carry Egdon for $500,000 of other general and administrative costs on the permit.

The farm-out agreement is subject to government approval.

In addition, Egdon said the Mairy…

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