Egdon Resources (LON:EDR) is selling 15 per cent interests in two onshore licences in Nottinghamshire, UK, it said today.
The stakes in licences PEDL118 and PEDL203 have been bought by Nautical Petroleum.
The company said the deal gives it a useful cash injection ahead of its development of another well - also in central England.
Nautical must pay a cash sum of £200,000 on completion and £150,000 towards the firm's costs of the next well to be drilled on PEDL118 or PEDL203.
Egdon's managing director Mark Abbott said the transaction provided a useful cash injection to Egdon ahead of the development of the Dukes Wood-1 well on Licence PEDL118 which is expected towards the end of first quarter of 2012.
"The deal also provides Egdon with a substantial carry on the next well to be drilled in the area," he said.
Licence PEDL203 contains the Kirklington-3z producing well, sunk last year, which produced at rates of 15-20 barrels of oil per day.
The Kirklington oil field has all consents and approvals in place for production but is currently shut-in awaiting development of Dukes Wood-1.
PEDL118, which is contiguous to PEDL203, contains the abandoned Eakring-Dukes Wood oil field where the Dukes Wood 1 well was drilled and tested in 2010, with the Ashover Grit "AG4" reservoir interval producing at rates of around 20 bopd.
Egdon has also identified a number of targets on the Eakring/Dukes Wood structure, including previously undrilled highs such as Eakring North where additional wells may be drilled in the future, it said.
Following the deal, on both PEDL118 and PEDL203, Egdon will hold 50 percent, Terrain Energy will have 25 per cent, Nautical Petroleum, 15 per cent and Angus Energy Eakring Development - 10 per cent.
The effective date of the transaction is 31 December 2011.