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, announces its unaudited interim results for the six months ended 31 January 2016.
Overview and Highlights
Operational and Corporate Highlights
- Successful in the 14th Onshore Licensing Round with the award of nine new licences within Egdon’s core focus areas increasing our acreage by 50% to 211,000 acres
- Decision to proceed with Wressle field development – currently finalising all consent submissions, with anticipated first production later in 2016, subject to receipt of all required consents
- Submission of Springs Road planning application in PEDL139/140 (Egdon 14.5% interest) by operator IGas. Egdon is carried on these initial wells by Total
- Production up 38% to 37,543 barrels of oil equivalent (“boe”) equating to 204 barrels of oil equivalent per day (“boepd”) (H1 2015: 27,232 boe; 148 boepd)
- Positive Holmwood planning decision received (PEDL143), operator Europa making preparations to drill the prospect located immediately to the west of and analogous to the Horse Hill oil discovery
- Farmouts concluded for PEDL005R (Keddington) and PEDL209 (Laughton)
- Gross oil and gas revenues during the period up 15% to £1.05 million (H1 2015: £0.91 million) despite the significant fall in commodity prices
- Loss for the period of £2.00 million after accounting for impairments at Waddock Cross and the revaluation of the Ceres accrued income (H1 2015: 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)
- The Company has no debt (H1 2015: Nil)
- Net current assets as at 31 January 2016 of £6.06 million (H1 2015: £9.15 million) including cash at bank of £5.26 million (H1 2015: £6.51 million)
Post Balance Sheet Events
- Completed drilling of sidetrack development well at Keddington-5
- Completed drilling of exploration well at Laughton-1 (dry hole) fulfilling earn-in obligation to PEDL209
Commenting on the results, Philip Stephens, Chairman of Egdon said:
“Following the 14th Round awards, we have increased our unconventional resources acreage portfolio significantly. Looking forward in 2016, the development of our successful Wressle discovery should materially increase our overall production and we are hopeful that full planning permission will be granted at Springs Road to enable shale gas exploration in the Gainsborough Trough area to begin. Our financial position continues to be comfortable and we remain optimistic for the future.
The coming period will see some other key planning outcomes for the industry with decisions on Cuadrilla’s activities in Lancashire and Third Energy’s in North Yorkshire. On the back of the 14th Round awards, we anticipate the announcement of further exploration activity later in 2016, underlining continued interest in the UK’s unconventional resource prospectivity.