Upstream energy company Heyco Energy Group, through its subsidiary Petrichor Partners, has closed the acquisition of Egdon Resources, a UK-based exploration and production company.

The deal, which was announced in May 2023, values Egdon at around £26.64m ($32.7m) on a fully diluted basis, Egdon said earlier.

For more than two decades, Heyco has provided technical advice to and invested in Egdon, which is developing opportunities for hydrogen, energy storage, geothermal and renewable generation.

Egdon also owns stakes in 33 licences in the UK. It is involved in the exploration and production of conventional oil and gas.

Furthermore, Egdon owns licences related to unconventional oil and gas resources.

Heyco president and CEO George Yates said: “Egdon is a very strong enterprise with current production and a number of exciting conventional, unconventional and renewable opportunities.”

Yates said the technical and operational expertise of Egdon and Heyco will now be deployed in projects in the UK, Spain and the US.

Egdon owns a 30% operatorship stake in the Wressle onshore oilfield located in PEDL180 and PEDL18 in north Lincolnshire, UK.

Egdon CEO Mark Abbott said: “We look forward to Egdon’s next chapter as a private company within the wider Heyco family where the combined financial and human capital will help us reach our vision of providing locally derived, secure, affordable and sustainable energy to meet the UK’s evolving energy needs.”

Heyco said that Egdon also has significant shale assets. These assets are currently affected by the moratorium imposed by the UK on hydraulic fracturing.

Yates added: “With its sizeable shale acreage in the Gainsborough Trough, Egdon has smartly positioned itself to be a leader in delivering critical volumes of natural gas to UK households and businesses should lawmakers support local, unconventional development.”