EnCore has signed a deal with UK-based exploration and production company Egdon Resources for the sale of an interest in the UK offshore Ceres gas field.

In return, EnCore said it will acquire a material equity stake in Egdon Resources.

Egdon will issue 39.2 million shares to EnCore and its subsidiaries, equivalent to approximately 30% of its enlarged share capital.

Egdon will also pay EnCore £1m ($1.35m) on completing the sale of the subsidiary holding the French licences, some of which are onshore.

The agreement also requires EnCore to provide Egdon with technical, commercial and accounting services.

The assets included in the agreement are nine interests in UK, two French licences and an interest in the Ceres gas field on the UK Continental Shelf.