Egdon Resources plc (AIM:EDR), the UK-based exploration and production company with a primary focus on the hydrocarbon-producing basins of the onshore UK, today announces its unaudited interim results for the six months ended 31 January 2015.
Overview and Highlights
Operational and Corporate Highlights
- Production of 27,232 barrels of oil equivalent (“boe”) equating to 148 barrels of oil equivalent per day (“boepd”) (H1 2014: 35,773 boe; 194 boepd)
- Revised full year production guidance of 180 boepd
- Successful drilling and testing of the Wressle-1 oil and gas discovery in Lincolnshire which produced hydrocarbons from four test intervals
- Strong project pipeline developed including planning permission secured at North Kelsey and Biscathorpe
- Ongoing development of licence portfolio with conventional and unconventional resource potential via the acquisition of Yorkshire Exploration Limited (PEDL068) and exercise of the option with Scottish Power to farm in to PL161 and PL162
- Disposal of interests in two non-core licences in Southern England, PEDL126 and P.1916
- Submission of applications in the 14th UK Onshore Licensing Round
- Oil and gas revenues during the period of £0.91 million (H1 2014: £1.41 million)
- Loss for the period of £1.74 million including losses on disposals/farm-outs and impairments in relation to Waddock Cross, Burton on the Wolds and Kiln Lane (H1 2014: profit of £0.83 million including gains on a farm-out).
- Net current assets as at 31 January 2015 of £9.15 million (H1 2014: £2.04 million) and cash at bank as at 31 January 2015 of £6.51 million (H1 2014: £1.17 million)
- Strong balance sheet to deliver on work programme and strategy
Commenting on the results, Philip Stephens, Chairman of Egdon said:
“The Company has continued to make good progress on implementing its strategy against a backdrop of reduced oil prices. The Wressle oil and gas discovery has been successfully drilled and tested at rates exceeding 700 boepd combined from four intervals. We are now working towards the early development of this discovery and expect Wressle to add to our existing production and revenues.
We have continued the development of our Northern England unconventional resource exploration portfolio, with the exercise of our option on PL161 and PL162 and ongoing detailed assessment of the acreage acquired from Alkane Energy. We have seen a further high value farm-out deal between IGas and INEOS in recent weeks and Egdon continues to review the best timing to introduce a suitable funding partner into our high quality unconventional resource acreage.
We anticipate undertaking further drilling for conventional resources in the coming period on the back of successful planning applications, and, subject to receipt of all necessary consents, participation in the first exploration well for unconventional resources in the Gainsborough Trough. Our strong balance sheet leaves us well positioned to enable us to deliver on our forthcoming work programme and strategy.”