Egdon Resources plc (AIM:EDR) announces that it will today start the appeal process through the Planning Inspectorate in respect of the decision by North Lincolnshire County Council (“the Council”) on 11 January 2017 to refuse planning consent for the development of the Wressle Oil Field at Lodge Farm, Wressle, North Lincolnshire.
It is expected that the Planning Inspectorate will validate the submitted appeal documentation within the next 1-2 weeks and will then notify Egdon and the Council of the start date and timetable for the appeal process.
As previously announced the Company will in parallel submit a new planning application for the Wressle development which will include even more detailed information to address the specific points raised by the Council in their refusal. This new planning application will be submitted during April.
The Company also anticipates that the Environmental Permit for Wressle should be issued by the Environment Agency towards the end of April, subject to the outcome of the current consultation process on the draft permit which closes shortly.
In addition, the water monitoring boreholes for the site, for which planning consent was received from the Council at the planning meeting on 11 January 2017, were successfully installed on the existing Wressle well site during February 2017.
Commenting on the update Mark Abbott, Managing Director said: “We believe our case for the appeal is very strong and we will look to progress both the appeal and the new application through the planning system as quickly as possible. We believe this dual track approach will provide the best opportunity for a successful outcome with the minimum delay.“
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 2017. A presentation for analysts will be held at 9:30am on 11 April 2017 at the offices of Buchanan, 107 Cheapside, London EC2V 6DN.
Overview and Highlights
Operational and Corporate
Successful placing and open offer to raise £5.06 million before costs in December 2016
- Acquisition of additional interests in PEDL068, PEDL201, PEDL306 and PEDL334
- Planning consent granted to operator IGas to drill up to two exploratory wells in Misson Springs, North Nottinghamshire. (Egdon 14.5% interest). Egdon is carried on these initial wells by Total
- ERC Equipoise reported an independent assessment of the undiscovered gas initially in place (GIIP) in ten previously unassessed licences resulting in a Company combined mean of 50 trillion cubic feet of gas (“TCF”)
- Production in line with current forecast totalling 16,882 barrels of oil equivalent (“boe”) (94 barrels of oil equivalent per day “boepd”) (H1 2016: 37,543 boe; 204 boepd)
- Refusal of planning consent for development of the Wressle oil field
- Gross oil and gas revenues during the period £0.51 million (H1 2016: £1.05 million)
- Loss for the period of £0.73 million (H1 2016: loss of £2.00 million after accounting for impairments of £0.5 million at Waddock Cross and the revaluation of £0.3 million of the Ceres accrued income)
- The Company has no debt (H1 2016: Nil)
- Net current assets as at 31 January 2017 of £8.00 million (H1 2016: £6.06 million) including cash at bank of £6.80 million (H1 2016: £5.26 million)
Post Balance Sheet Events
- Decision to progress both an appeal and a new application for the Wressle development
- Acquisition of additional interest in deep potential of PEDL209 and restructuring of Total option agreement
Commenting on the results, Philip Stephens, Chairman of Egdon said:
“In a period of further progress we were pleased to complete an equity cash raising of £5 million in December 2016, which has significantly strengthened our balance sheet. An independent evaluation of the net gas in place for our unconventional resources has given a figure of 50 TCF which shows a considerable increase over the last estimate made two years ago. Our conventional portfolio contains a number of very attractive prospects the value of which we expect to be able to realise in the next 12 to 18 months”
Egdon Resources plc (AIM:EDR) is pleased to announce that it has acquired from Stelinmatvic Industries Limited (“Stelinmatvic”) its 12% interest in the unconventional resources exploration rights in UK Onshore licence PEDL209 located in one of the Company’s core areas, the Gainsborough Trough. As part of the consideration for this acquisition, Egdon has transferred 12% out of its interest in the remaining conventional prospects on the PEDL209 licence to Stelinmatvic.
As further consideration, Egdon has today issued 580,646 Ordinary Shares in the Company (“the Consideration Shares”) to Stelinmatvic, fully paid. The value of the Consideration Shares is equivalent to £54,000 based on the average closing mid-price for the five days prior to the day of completion. The Consideration Shares represent 0.22 per cent. of the enlarged share capital of the Company. Application has been made for admission of the Consideration Shares to trading on AIM, which is expected to become effective on 7 April 2017. Following admission the Company will have 259,984,822 shares in issue
Concurrent with this transaction, Egdon has entered into a new Opt-In Agreement with Total E&P UK Limited (“Total”), a wholly owned subsidiary of Total SA. Under the terms of the agreement, Total has an option to farm-in to unconventional resources exploration in PEDL209, exercisable until 31 December 2018 and to earn a 36% interest in the licence by paying Egdon’s remaining 36% (together with Total’s own 36% interest) of an exploration programme of up to a gross £13.47 million which would include seismic acquisition and the drilling of a well.
Egdon Resources plc (AIM:EDR) announces that its Interim Results for the six months ended 31 January 2017 will be released on Tuesday, 11 April 2017
An analyst briefing will be held at 9.30am on 11 April 2017 at the offices of Buchanan, 107 Cheapside, London, EC2V 6DN.
Egdon Resources plc (the “Company”) has been informed that as a result of Mr Mark Abbott’s younger son achieving his majority, his shareholding is no longer to be counted as part of Mr Abbott’s beneficial shareholding. Accordingly, although these shares have not been sold, Mr Abbott’s beneficial shareholding is reduced by 100,000 ordinary shares to 7,764,387 ordinary shares, representing 2.99% of the issued and voting share capital of the Company.