Positive Biscathorpe Planning Appeal Decision
Egdon Resources Limited is pleased to advise that the Planning Inspectorate has upheld the appeal against the refusal of planning permission by Lincolnshire County Council for a side-track drilling operation, associated testing and long-term oil production at the Biscathorpe-2 well site. The Biscathorpe project is within onshore licence PEDL253.
The PEDL253 joint venture partnership will review the decision notice and associated planning conditions in detail before providing an update on our plans for progressing operations. As part of this Egdon will look to engage with the local community to ensure our activities have minimal impact on local amenity.
Interim Results for six months to 31 July 2023
Wressle Project Update
Workover operations on the Wressle-1 well to install a downhole jet pump and recomplete the well have been successfully concluded. The workover rig has been demobilised from the Wressle site.
A new surface Triplex pump has been purchased and has been installed and connected. The final stages of the surface facilities upgrades are nearing completion. The re-instatement of production operations at Wressle-1 well is currently expected during the week commencing 23 October 2023.
Egdon hold a 30% economic interest in PEDL180/182.
HEYCO Energy Group Acquires UK Exploration & Production Company Egdon Resources
Cancellation of Trading on AIM
Scheme of Arrangement Becomes Effective
Confirmation of Scheme Timetable
Rule 2,9 Announcement Correction - Share in Issue
Court Sanction of Scheme of Arrangement
Rule 2.9 Announcement - Shares in Issue
Cloughton Gas in Place Update
Farmin and Equalisation of Interests - PL81 and PEDL347
Wressle Update -Artificial Lift
Egdon Resources plc (AIM:EDR), the UK Energy Company, announces that operations to install artificial lift on the Wressle-1 well (in which Egdon has a 30% interest) have commenced.
The operations began with a slickline programme where downhole pressure and temperature gradients were acquired. Slickline operations have now been completed and the ongoing work programme includes recompleting the well for installation of a downhole jet pump and installing the associated surface equipment. It is expected that these operations will last around three weeks and that production from the Wressle-1 well is expected to be reinstated in late September.
The downhole data obtained from these activities is being incorporated into the ongoing work by ERC Equipoise Ltd and the impact of the artificial lift will be included in the independent Competent Person’s Report which will be announced once this additional work is completed.
Commenting Mark Abbott, Managing Director of Egdon, said:
“The installation of a jet pump system has been programmed for some time and was selected following earlier evaluation of all artificial lift options along with our joint venture partners. Its installation will ensure production from the Wressle-1 well continues to be optimised following the expected onset of water production. I am pleased to confirm that operations to install the system have begun and I will update shareholders in due course.”
Satisfaction of NSTA Condition
Exercise of farmout option PL081 and agreement relating to PEDL347
Egdon Resources plc (AIM:EDR) the UK Energy Company, provides an update on the Wressle well and expected timing of publication of the Competent Person’s Report currently being undertaken by ERC Equipoise Ltd (“ERCE”).
• Cumulative production from the Wressle-1 well totalled 492,876 barrels of oil through to the end of July 2023
• The well continues to produce under natural flow
• Limited volumes of water have been observed, with water cut averaging 3.72% of total field production during July 2023
• The start of water production is significantly later than originally anticipated, providing further evidence that the expected recoverable volumes from the Ashover Grit will be at the higher end of the estimates detailed in the independent Competent Person’s Report (“CPR”) prepared by ERCE and announced on 26 September 2016. The 2016 CPR forecast gross volumes from the Ashover Grit of 2P 0.54 MMstb and 3P 1.12 MMstb.
• The advent of water is now being incorporated into ERCE’s reservoir modelling and resource assessment work streams, which will be reflected in the new Competent Person’s Report
• A more detailed update will be provided when the Competent Person’s Report has been completed
Change to Accounting Period
Egdon Resources plc (AIM:EDR) the UK Energy Company, advises that it has extended its current accounting period, which would have ended on 31 July 2023, by five months to end on 31 December 2023. This follows shareholder approval of the terms of a recommended all cash acquisition by Petrichor Partners LP (“Petrichor”) for the entire issued and to be issued ordinary share capital of Egdon and will align Egdon with the accounting period of Petrichor and also minimise ongoing audit costs.
As a result of this extended period, Egdon will publish unaudited interim results for the six-months to 31 July 2023 by 31 October 2023.
Egdon would plan to file its audited accounts for the extended period by 30 June 2024. However, should Egdon remain a public company beyond 31 December 2023 then it will publish its audited accounts for the extended period by 30 March 2024.
Change of Operator PEDL343
Form 8.3 - EGDON RESOURCES PLC
Results of General and Court Meetings
Form 8.3 - EGDON RESOURCES PLC
Form 8.5 - Egdon Resources PLC
Form 8.3 - Egdon Resources PLC
Form 8.3- Egdon Resources PLC
Form 8.5 - Egdon Resources PLC
Form 8.3 - Egdon Resources PLC
Form 8.3 - Egdon Resources PLC
Form 8.3 - Egdon Resources PLC - Amendment
Publication and Posting of the Scheme Document
Posting of Rule 15 Letters
North Kelsey planning appeal update
Egdon Resources plc (AIM:EDR) the UK Energy Company, advises that it has reluctantly made the decision to withdraw the planning appeals in relation to the refusal of planning consent for exploratory drilling at North Kelsey, which were due to be heard at a hearing on 14 and 15 June 2023.
This decision follows recent correspondence with the Planning Inspector where it became clear that he viewed the lateral borehole, which was included in the latest application, as new development which was outside of the original red line boundary of the 2014 planning consent and therefore which could not be properly considered as part of a Section 73 application as made. In this correspondence both Egdon and Lincolnshire County Council, as the minerals planning authority, expressed the position that the lateral borehole was valid under Section 73.
The lateral borehole is a fundamental aspect of the exploratory well at North Kelsey to ensure all exploration targets are fully explored. Therefore, to ensure that there is clarity on this matter Egdon will be submitting a new planning application for consideration by Lincolnshire County Council as soon as possible. This application will be accompanied by recently completed updated traffic, ecology and flood risk assessments.
As part of this process we will undertake fresh consultation with the local community prior to submitting the application. This will provide the opportunity for members of the public and parish councils to inspect the proposals at North Kelsey and be more informed during the formal consultation process undertaken by Lincolnshire County Council.
Commenting Mark Abbott, Managing Director of Egdon, said;
“Whilst it is disappointing to have to withdraw the appeals at this late stage and with the strong belief that our case for approval was compelling, we and our advisors unfortunately saw little option given that a lateral borehole is key to the exploratory drilling, and to ensure clarity and robustness in any decision made.
We will now focus on finalising a new application supported by recently completed updated technical assessments to account for any changes since the original planning consent from 2014.”
Form 8.3 - EGDON RESOURCES PLC
TR1 Notification of major holdings
Rule 2.9 Announcement
Proposed Extension of Existing Warrants
Form 8 (OPD) By Offeree
Form 8 (OPD) Egdon Resources plc
Form 8.5 - Egdon Resources PLC
Dealing disclosure by person acting in concert
8.3 Egdon Resources plc
8.5 Egdon Resources plc
Rule 2.9 Announcement Relevant Securities Issued
Recommended Cash Acquisition of Egdon Resources plc by Petrichor Partners LP
Please find via the link below an announcement relating to a recommended cash acquisition of Egdon Resources plc by Petrichor Partners, LP to to be effected by means of a Scheme of Arrangement under Part 26 of the Companies Act 2006
Interim Results for the Six Months Ended 31 January 2023
Notice of Investor Presentation
Egdon Resources plc (AIM:EDR), the UK focused energy company, is pleased to announce that it will provide a live presentation relating to the company’s Interim Results via the Investor Meet Company platform on 24th Apr 2023 at 10:00am BST.
The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via your Investor Meet Company dashboard up until 9am the day before the meeting or at any time during the live presentation.
Investors can sign up to Investor Meet Company for free and add to meet EGDON RESOURCES PLC via:
Investors who already follow EGDON RESOURCES PLC on the Investor Meet Company platform will automatically be invited.
Interim Period Trading Statement
Ahead of the release of the Company’s interim results on 24 April 2023, Egdon Resources plc (AIM:EDR), the UK Energy Company, is pleased to provide a summary trading update in relation to the six months period ending 31 January 2023 (the “Interim Period”).
• Production for the Interim Period was up by 27% to 46,465 barrels of oil equivalent (“boe”) equating to a rate of 253 boe per day (“boepd”), ahead of full-year guidance of 225-245 boepd (H1 2022: 36,714 boe and 200 boepd)
• Unaudited revenue for the Interim Period was up 46% to £3.725 million (H1 2022: £2.551 million)
• As at 31 January 2023 the Company had cash and cash equivalents of £5.524 million (H1 2022: 2.084 million) and net current assets of £7.334 million (H1 2022: 1.165 million)
The Company is continuing to make good progress across its conventional assets and particularly in relation to the near-term operational objectives set out in the 2022 annual report. Production continues to be strong, particularly from Wressle, where Egdon has also progressed with the gas utilisation and monetisation scheme through the installation of the micro-turbines – which will eliminate routine on site diesel generation - and where work is ongoing on the gas to wire project. The Company is progressing towards submitting planning and permitting for further development at Wressle and finalising a programme of drilling in our exploration and development/redevelopment projects for 2023-24. Egdon is also making good progress on a potentially material renewable energy, green hydrogen and energy storage project.
Commenting on the trading update, Mark Abbott, Managing Director of Egdon, said:
“We continue to generate material revenues from the strong performance of our UK producing assets. This has led to a strengthening of the balance sheet to support the planned 2023-24 operational programme.
With the business in good health, I look forward to providing shareholders with a more detailed update on the Company’s financial and operational performance on the 24th April.”
Wressle Update - Community Liaison Group Meeting
Egdon Resources plc (AIM:EDR) the UK Energy Company is pleased to provide an update on operations at the Wressle oil field following the Community Liaison Group (“CLG”) meeting held during the evening of 15 March 2023.
At the meeting the following information was shared with members of the CLG:
• The Wressle-1 well has continued to flow oil and associated gas at production rates above forecast expectations made ahead of the successful Proppant Squeeze operation, conducted in August 2021
• Total production from Wressle has now exceeded 390,000 barrels of oil
• No water has been produced to date
• Three microturbines were connected during January and February and are now fully operational
• An extended period of fine tuning and testing of the microturbines to determine the impact on production is currently ongoing
• The Environment Agency continues to monitor Egdon’s production operation through regular visits to the Wressle site, the most recent being on 22 February 2023, with no issues identified by the Regulator
• There have been no accidents or spillages since the start of production on the Wressle site in January 2021
• Groundwater and surface water monitoring has continued and latest results up to end December 2022 have been published on Egdon’s newly revamped community website www.egdon-community.com/active-sites
• During the second half of 2022 Egdon reprocessed the 3D seismic data over the field
• The new data has been interpreted and mapped with the objective of identifying reservoir targets for drilling an additional well or wells at the earliest opportunity, subject to receipt of regulatory approval
• The next new well or wells will likely be drilled from the existing Wressle wellsite
• A new Competent Person’s Report has been commissioned incorporating the new field interpretation and production performance data. This will consider all oil and gas bearing formations at Wressle.
• The Wressle Community Fund has been operating since early 2022
• In August 2022, the operation of the fund was transferred to Broughton Community and Sports Association (BCSA) which runs the fund to meet the needs of local charities and community groups
• Groups which are outside the remit of the BCSA can still apply directly to Egdon for funding from a smaller pot which is retained to meet these needs
• The Wressle partners are making £100,000 a year available to local groups though these two funding pots
• The first of three windows per year for the Wressle Community Grant closed on 31 December 2022 with 12 applications received amounting to £42,029.60
• The Wressle partners provided additional funding of c. £5,500 to allow all eligible applications to be granted.
Total Voting Rights
In accordance with the Financial Conduct Authority's Disclosure Guidance and Transparency Rules, at 28 February 2023 the total number of Ordinary shares of 1p of the Company in issue is 543,983,031.
The above figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company, under the Disclosure Guidance and Transparency Rules.
The Company does not hold any shares in Treasury.
Block Listing Six Monthly Return
Completion of Acquisition of Aurora Production (UK) Limited
Egdon Resources plc (AIM:EDR) is pleased to advise that further to the announcement of 20 December 2022 it has completed the acquisition of the entire issued share capital of Aurora Production (UK)Limited (“Aurora Production”) from Aurora Petroleum Limited (the “Vendor”).
Aurora Production is a private company, which holds an 18.75% interest in the Edgon operated licence PL090 which contains the Waddock Cross oil field and an 8.33% interest in the IGas operated licence PEDL070which contains the Avington oil field.
Egdon’s interest in the Waddock Cross oil field (PL090)increases to 73.75% and to 56.04% in the remaining parts of PL090 (excluding the Waddock Cross oil field). Waddock Cross is currently shut-in. Independent reservoir modelling has shown that a new horizontal well on the field could yield commercial oil production (500-800 bopd). Given the significant mean in-place oil volume of c. 57 million barrels, this asset has been high graded by Egdon for redevelopment.
Egdon has increased its holding in the Avington oil field to 36.33%. Avington remains shut-in, with work ongoing to redevelop the field during H1 2023.
Egdon estimates that the transaction adds approximately 0.614 million barrels of Best Estimate Contingent and Prospective Resources of oil to its resource inventory.
The consideration for this acquisition is the assumption by Egdon of all ongoing liabilities on these licences, including all abandonment liabilities, from the commercial date of the transaction, which is 30 September2022.
As part of the transaction Egdon has received a cash sum from the Vendor of £0.288 million, less the interim period costs, which reflects the current estimate in relation to the abandonment liabilities. Aurora Production has also granted Net Profit Interests to the Vendor of 10% on each of the licence interests. In the event that profitable production is established, the Vendor will be reimbursed the £0.288 million.
Aurora Production also has accumulated upstream ringfenced tax losses of ca. £90 million that should be available to offset tax on future profits.
Commenting on the acquisition, Mark Abbott, Managing Director of Egdon said:
“We are pleased to have completed this acquisition, which builds on our existing interests in the Waddock Cross and Avington oil fields. Both assets have active plans in place to rejuvenate oil production. The acquisition therefore adds potential for near-term incremental production, adds to our resource base and delivers substantial tax losses that may be utilised to offset future taxes.”
PL081 Farmout Option Agreement
Egdon Resources plc (AIM:EDR), the UK Energy Company, is pleased to advise that it has entered into a Farmout Option Agreement (the “Agreement”) with York Energy (UK) Holdings Limited (“York”) relating to onshore Production Licence PL081 (the “Licence”) in North Yorkshire.
The Licence contains the Weaverthorpe Prospect (“Weaverthorpe”). Weaverthorpe is a relatively shallow Bunter Sandstone (Triassic) prospect located immediately up-dip of interpreted gas pay in the Fordon-2 well (drilled by BP in 1974). Egdon’s initial evaluation indicates an estimated Mean prospective gas resource of 58 billion cubic feet.
Under the terms of the Agreement Egdon has a period of six months from 3 February 2023 to elect to farm into the Licence (the “Option”). During the Option period, Egdon will undertake additional technical and operational work to de-risk the opportunity, including reprocessing of the vintage 2D seismic data and integration of this with the existing 3D seismic data which defines the western part of the prospect.
As consideration for the grant of the Option, Egdon will pay 100% of the 2023 licence fees.
Should Egdon exercise the Option, it will earn a 70% interest in the Licence and assume operatorship. As consideration Egdon will pay 100% of the costs associated with the planning, drilling, logging, and either short term testing and completion or plugging and abandonment of a well to test the Weaverthorpe Prospect.
In addition, on exercise of the Option, Egdon will pay York a cash sum of £100,000, less any licence fees that were paid by Egdon for 2023.
York has an agreement with the current operator, Third Energy UK Gas Limited (“Third”), entitling it to be assigned the entire legal and beneficial interest in PL081. Egdon will pay 100% of the costs associated with the transfer of the Licence from Third to York and to Egdon (Such transfer being subject to NSTA approval.)
Commenting on the Agreement Mark Abbott, Managing Director of Egdon, said:
“This farmout option for the Weaverthorpe Prospect represents a significant opportunity for Egdon to increase its exposure to a potentially material gas resource at a time when the UK’s reliance on imported energy has come into sharp focus.
The deal structure secures the opportunity at low cost whilst we undertake additional technical due diligence through the application of modern seismic processing technology.
We look forward to updating shareholders on this exciting opportunity over the coming period.”
Results of AGM - Voting Results and Proxy Appointments
Egdon Resources plc (AIM: EDR) the UK Energy business is pleased to announce that at the Annual General Meeting held at 11.30 hours today all the resolutions proposed in the notice of the meeting were duly passed.
A business update presentation was made immediately following the AGM and is now available on the Company's website www.egdon-resources.com
The detailed voting results and proxy appointments arein the link below:
AGM Business Update
The Company’s revenue continue to be strong with unaudited revenue for the five-month period from August to December 2022 of £3.08 million (2021: £2.07 million).
Progress is being made across Egdon’s entire portfolio of assets, highlights include:
· Cumulative oil production of more than 341,100 barrels to 12 January 2023, with no water
· Current daily production rate of approximately 825-850 barrels of oil per day (“bopd”), however, a daily rate of in excess of 1,000 bopd was achieved in late December 2022, following a four day shut-down
· Three microturbines have been delivered to site and installation and commissioning is ongoing
· The microturbines will generate all site electricity and are expected to enable up to a 20% uplift in oil production
· 3D seismic reprocessing completed and new field interpretation being finalised to confirm final target locations for future appraisal and development drilling
· New Competent Persons Report to be commissioned incorporating the new field interpretation and exceptional production performance
· Planning and permitting process for Penistone Flags development has commenced
· Drilling of a Penistone Flags development well is planned for H2 2023, subject to receipt of regulatory and planning consents
· Progressing gas to wire, and gas export options to generate further revenue streams and to eliminate gas incineration at Wressle
· Reprocessing of existing 3D seismic data currently being finalised to inform final sub-surface location for a side-track well to target around 160,000 barrels of incremental oil production
· Planning consent and permits in place to enable drilling during H2 2023
· All planning conditions have been discharged and the operator is planning to restart production during H1 2023
· Egdon will increase its interest in the field to 36.33% on completion of the acquisition of Aurora Production Limited
· Egdon will increase its interest in the field to 73.75% on completion of the acquisition of Aurora Production Limited
· Planned redevelopment of the Waddock Cross oil field
· The Company is progressing planning and permitting to secure consents for drilling with the target of H1 2024
· A Planning Hearing was held on 11 October 2022 and the Inspector’s decision is awaited
· Preparations for drilling in H2 2023 would follow from a successful planning appeal
· Egdon submitted a planning appeal in August 2022 and we have been informed that the appeal will be held as a Hearing with the detailed timing awaited from the Planning Inspectorate
Resolution and Endeavour (P1929 and P2304)
· Shell has completed its withdrawal from the P1929 licence and Egdon is now operator with a 100% interest
· P2034(Endeavour) was surrendered in November 2022
· The nearby, analogous Pensacola Prospect has discovered gas and a testing programme is underway
Updated Corporate Presentation
An updated corporate presentation, including updates as detailed above, will be made following the AGM and will be available on the Company's website at www.egdon-resources.com
Mark Abbott, Managing Director of Egdon, commented:
“Egdon continues to generate strong revenues from its UK producing assets with Wressle being the standout asset, performing ahead of expectations. We anticipate a further uplift in production at Wressle in the near future once the microturbines are fully commissioned and operational. We are actively progressing planning and permitting for the development of the Penistone Flags reservoir, which along with the associated gas to grid project will result in a further material uplift in production and revenues.
Elsewhere, we are progressing our plans for a drilling campaign during the next 12 to 24months designed to further increase our production and revenue and funded from the material cash flow being generated from our existing production.”
Updated Documentation for AGM
Egdon Resources plc advises that updated and corrected documentation has been produced in respect of the Annual General Meeting (“AGM”) of the Company to be held on Tuesday 17 January 2023 at 11.30 a.m. at the offices of Norton Rose Fulbright, 3 More London Riverside, London SE1 2AQ, United Kingdom.
Notice of availability of these documents has been sent to members and these documents are available on the Company’s website at www.egdon-resources.com.
Any proxies already submitted will remain valid for the AGM unless superseded by a new proxy.
Acquisition of Aurora Production (UK) Limited
Egdon Resources plc (AIM:EDR) is pleased to announce that it has signed a conditional agreement to acquire the entire issued share capital of Aurora Production (UK) Limited (“Aurora Production”) from Aurora Petroleum Limited (the “Vendor”). Aurora Production is a private company, which holds an 18.75% interest in the Edgon operated licence PL090 which contains the Waddock Cross oil field and an 8.33% interest in the IGas operated licence PEDL070 which contains the Avington oil field.
The consideration for this acquisition will be the assumption by Egdon of all ongoing liabilities on these licences, including all abandonment liabilities. However, as part of the transaction Egdon shall receive a cash sum from the Vendor of £0.288 million which reflects the current estimates in relation to these liabilities. Aurora Production will at the completion of the transaction grant Net Profit Interests to the Vendor of 10% on each of the licence interests which, in the event that profitable production is established, will result in the Vendor being reimbursed the sum it gave Egdon to cover the abandonment liabilities for such licence.
Aurora Production has accumulated upstream ring fenced tax losses of ca.£90 million that should be available to offset tax on future profits. The commercial date of the transaction will be 30 September 2022. The transaction is subject to approval of the change of control by NSTA and the other licensees.
Egdon has an existing 55% operated interest in the Waddock Cross oilfield (PL090) which will increase to 73.75% on completion. In addition, Egdon will increase its interest in the remaining part of PL090 (excluding the Waddock Cross oil field) from 42.50% to 56.04%. Waddock Cross is currently shut-in. Independent reservoir modelling has shown that a new horizontal well on the field could yield commercial oil production (500-800 bopd). Given the significant mean in-place oil volume of c.57 million barrels, this asset has been high graded by Egdon for redevelopment.
Egdon will increase its holding in the Avington oil field from 28.00% to 36.33%. Avington remains shut-in but planning consent to restart production was granted on appeal in December 2021. The forward plan is to redevelop the field during 2023 with longer term plans to include establishing on site water handling facilities.
Egdon estimates that the transaction covering both licences will add approximately 0.614 million barrels of Best Estimate Contingent and Prospective Resources of oil to its resource inventory.
Commenting on the acquisition, Mark Abbott, Managing Director of Egdon said:
“This acquisition builds on our existing interests in the shut-in Waddock Cross and Avington oil fields. Both assets have active plans in place to rejuvenate oil production. The acquisition therefore adds potential for near-term incremental production, adds to our resource base and delivers substantial tax losses that may be utilised to offset future taxes.”
Postponement of AGM to 17 January 2023
Egdon Resources plc advises that the Annual General Meeting (“AGM”) of the Company scheduled to be held on Tuesday 13December 2022 at 11.30 a.m. is to be postponed and will now be held on Tuesday17 January 2023 at 11.30 a.m. at the offices of Norton Rose Fulbright,3 More London Riverside, London SE1 2AQ, United Kingdom.
The original notice of the AGM was sent to Shareholders on 17 November 2022. Since then the RMT union has announced a series of 48-hour rail strikes for 13-14 and 16-17 December and 6-7January 2023. The AGM has to be held before the end of January 2023 and your Board believes that it is in the best interests of all stakeholders that this flexibility should be used to postpone the AGM to a date which is, at least at the moment, not scheduled to be affected by any such strike action.
A detailed notice for the postponement and rescheduled AGM, along with a revised Form of Proxy is being sent to members and these documents will be available on the Company’s website at www.egdon-resources.com.
Save for the new date for holding the AGM, the date when the Register of Members will close and the date by which proxies need to be lodged, all details of the earlier notice of 17 November 2022 remain unchanged.
Proxies already submitted will remain valid for the new date of the AGM unless superseded by a new proxy.
The Board regrets any inconvenience caused.
2022 Annual Report and Accounts and AGM Documentation
Egdon Resources plc is pleased to announce that its 2022 Annual Report and Accounts and AGM Documentation are now available on its website at www.egdon-resources.com.To access the documents, select Shareholder under the Investors dropdown list or alternatively, use the following link at www.egdon-resources.com/investors-2/shareholder-communication.
Preliminary Results for the year ended 31 July 2022
Egdon Resources plc (AIM: EDR), a UK-based exploration and production company primarily focused on the hydrocarbon-producing basins of onshore UK, today announces its preliminary results for the year ended 31 July 2022.
Operational and Corporate Highlights
Egdon net production during the period increased by 160% to 84,894 barrels of oil equivalent (“boe”) equating to 233 boe per day (“boepd”) (2021: 32,686 boe, 90boepd).
Wressle production has significantly exceeded forecast expectations with average gross production during the period of 656 barrels of oil per day (“bopd”) at rates constrained by the EA Permit limits for gas disposal and with zero water production to date.
The Ceres gas field is providing a late life renaissance due to the high gas price and low operating costs.
Following the refusal of planning permission in November 2021 for the drilling of aside-track well, testing and long-term production at the Biscathorpe project, an appeal was submitted in April 2022.
On 8 March 2022 a revised incentive package was put in place for all employees through the issue of new share options and the cancellation of all historical share options.
On 14 March 2022, planning permission was refused to extend the existing consents to drill the North Kelsey-1 exploration well and an appeal was submitted in April 2022.
On 5 April 2022, the Government announced that it had commissioned the British Geological Survey to advise on the latest scientific evidence around shale-gas extraction. Report delivered to BEIS on5 July 2022.
During April 2022, Shell advised Egdon of its intention to withdraw from licencesP1929 and P2304, containing the Resolution and Endeavour gas discoveries. Egdon applied to the NSTA for an extension of time to complete the 3D seismic programme.
Egdon has assumed the operatorship of PEDL343, increased its equity to 40% and agreed an extension to 20 March 2024. PEDL343 contains the Cloughton gas discovery.
LicencesPEDL202 and PEDL130 were relinquished during the period.
Oil and gas revenues increased by over 530% during the period to £6.91 million (2021: £1.09 million) as a result of significantly increased production and strengthening commodity prices.
Earnings before interest, tax, depreciation, amortisation, asset impairments, impairment reversals and write-downs were £4.67 million (2021: loss of £0.72 million).
Post tax profit for the period of £3.30 million including£1.40 million of impairment reversals, £1.80 million of impairments and £0.15million of write-downs and pre-licence costs (2021: loss of £1.68 million including £0.48 million of write-downs, pre-licence costs and impairments).
Basic earnings per share of 0.64p (2021: loss per share of0.51p). Diluted earnings per share of 0.57p (2021: loss per share of 0.51p).
Net current assets of £4.90 million (31 July 2021: £0.14) of which cash and cash equivalents were £4.80 million (31 July 2021: £1.96million).
The Company has no borrowings following the repayment of a£1 million loan during May 2022.
On 8 August 2022 the North Kelsey Planning appeal documentation was submitted.
On 8 September 2022 the Government announced the lifting of the moratorium on hydraulic fracturing for shale-gas.
Egdon was advised in October 2022 that the NSTA had consented to Egdon’s request for a twelve-month extension to the P1929 licence obligation to acquire the 3D seismic. Egdon will now engage with the NSTA to confirm the detailed expectation in relation to this and subsequent timelines. Should the 3D survey not be acquired by April 2023, P1929 will determine in May 2023. Licence P2304 will be relinquished.
A hearing was held on 11 October 2022 in relation to the Biscathorpe planning appeal and we now await the Planning Inspector’s decision.
On 27 October 2022 the Government reintroduced the moratorium on hydraulic fracturing for shale-gas.
Coincident with the release of its Preliminary Results, the Company has updated its corporate identity and released a new website (https://www.egdon-resources.com/).
Post-period-end production and revenues have continued to be strong with unaudited August to October 2022 revenues of £2.07million.
The key operational focus for the coming period will be:
Maintaining and enhancing the strong production performance at Wressle whilst progressing both the gas monetisation and Penistone Flags development as priorities.
To add reserves, production and revenues through the drill-bit in both our exploration and development/re-development projects.
To progress energy storage, hydrogen and renewable generation projects.
The Company will host a live audiocast of the Results Presentation via the Investor Meet Company at 10:00am on 8 November. Investors can sign up to Investor Meet Company for free and add to meet EGDON RESOURCESPLC via: https://www.investormeetcompany.com/egdon-resources-plc/register-investor
Commenting on the Results Egdon’s Chairman, Philip Stephens said;
“Egdon has been transformed over the past year through growing revenues and with a significantly improved outlook and operating environment.
The highlight has been the outstanding performance of the Wressle oil field which along with production from our existing fields and high oil and gas prices has resulted in a strong financial performance.
Despite the reintroduction of the moratorium on shale-gas by the Sunak led government, we will continue to make the case for the strategic importance that shale-gas could make to the UK’s economy and security of supply.
In the meantime, Egdon will focus on progressing its conventional oil and gas business and nascent energy transition projects to continue delivering long term value toits shareholders.”
Download and view full announcement:
Total Voting Rights
In accordance with the Financial Conduct Authority's Disclosure Guidance and Transparency Rules, at 31 October 2022 the total number of Ordinary shares of 1p of the Company in issue is 543,683,031.The above figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company, under the Disclosure Guidance and Transparency Rules.The Company does not hold any shares in Treasury.
Government Reintroduction of the Moratorium on Shale Gas Extraction
The directors of Egdon Resources plc (AIM:EDR), a UK focused energy company, note yesterdays Written Ministerial Statement (WMS) from the Rt Hon Grant Schapps MP, Secretary of State for theDepartment of Business, Energy and Industrial Strategy, in which he reintroduced the moratorium on hydraulic fracturing for shale-gas.Commenting, Mark Abbott, Managing Director of Egdon Resources plc, said:“This is a highly disappointing and illogical move by the Government, just a few weeks after lifting the moratorium and at a time of an ongoing energy supply and cost crisis. The decision prevents the immediate development of a safe and secure indigenous source of gas and if maintained, locks the UK into long term reliance on more carbon intensive LNG imported from Qatar, the shale-gas fields of the USA and elsewhere.We will continue to make the scientific and commercial case that shale-gas should be part of the long-term solution to the UK’s energy needs and that this can be done in a safe and environmentally sustainable manner whilst delivering material economic and geopolitical benefits for the UK.Our shareholders can take some comfort from the fact that throughout this chaotic period of government, Egdon’s core conventional oil and gas business has continued to generate strong revenues and cash flow and that the fundamentals of the business remain strong.”
Notice of Results and Investor Presentation
Egdon Resources plc (AIM:EDR), a UK focused energy company, will announce its preliminary results for the year ended 31 July 2022 on 8 November 2022.AudiocastThe Company will host a live audiocast of the Results Presentation via the Investor Meet Company at 10:00am on 8 November.The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via the Investor Meet Company dashboard up until 9am the day before the meeting or at any time during the live presentation.Investors can sign up to Investor Meet Company for free and add to meetEGDON RESOURCES PLCvia:https://www.investormeetcompany.com/egdon-resources-plc/register-investorInvestors who already followEGDON RESOURCES PLCon the Investor Meet Company platform will automatically be invited.