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Preliminary Results for the Year Ended 31 July 2021Egdon 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 2021.Operational and Corporate Highlights

• Completion of site reconfiguration, facilities installation and well recompletion at the Wressle oil field, with test production ongoing since late January 2021 and the proppant squeeze operation successfully completed in July 2021
• Production during the period was 90 barrels of oil equivalent per day (“boepd”) (2020: 145 boepd) against guidance of 110-130 boepd due to delays in undertaking the proppant squeeze at Wressle
• Planning application submitted for a side-track drilling operation, associated testing and long-term oil production at the Biscathorpe-2 well site 
• Entered a memorandum of understanding with Creative Geothermal Solutions Limited (“CGS”) in respect of geothermal projects with an initial focus on Egdon’s Dukes Wood-1 and Kirklington-3Z wells
• Completion of the farm-outs for the Resolution and Endeavour gas discoveries (P1929 and P2304) to Shell Oil U.K. Limited
• Continued refocussing and streamlining of the licence portfolio

Financial Performance

• Gross oil and gas revenues during the year increased by 13.4% to £1.09 million (2020: £0.96 million).
• Loss for the year ended 31 July 2021 of £1.68 million after write-downs, pre-licence costs and impairments of £0.48 million (2020: loss of £4.75 million after write-downs, pre-licence costs and impairments of £3.03 million)
• Basic loss per share of 0.51p (2020: 1.53p)
• Cash at bank £1.96 million as at 31 July 2021 (2020: £0.85 million)
• Net assets as at 31 July 2021 of £27.42 million (2020: £26.67 million)
• Refinancing of the business via a £1 million loan facility, the issue of £1.05 million convertible loan notes following shareholder approval at a General Meeting held on 22 January 2021, and an equity placing of £1.44 million gross in July 2021

Subsequent Events

• At Wressle, a coiled tubing operation, a follow-up to the proppant squeeze operation, was completed in August 2021, with test production recommencing and flow rates exceeding pre-operational expectations. During September, we reported facility constrained instantaneous flow rates of up to 884 barrels of oil per day (“bopd”) along with 480,000 cubic feet of gas (c. 80 barrels of oil equivalent per day).  Wressle is already having a positive impact on the Group’s revenues.
• In September 2021 we were advised by Shell that the planned 3-D seismic survey across UK offshore licences P1929 and P2304 (Resolution and Endeavour gas discoveries respectively (Egdon 30%)) would not proceed on the originally expected timeframe of February 2022. Subject to regulatory and Shell approval, we now anticipate that this could go ahead in February 2023.
• On 1 November 2021 planning permission was refused for the Biscathorpe project. The Company will await the formal decision notice before taking advice and considering our options including an appeal.

Outlook

• Initial production guidance for 2021-22 is 240 boepd, with Wressle being the significant contributor.
• With the material cash flow expected from Wressle and Ceres in a significantly improved commodity price environment, and the breadth and quality of the opportunities within the portfolio, we look forward with confidence.

AudiocastAn audiocast of the Results Presentation will be available to view via the following link from 09.30:http://webcasting.buchanan.uk.com/broadcast/61767494df7b150b81e93816Commenting on the Results Egdon’s Chairman, Philip Stephens said; “During what has been a challenging period as we continue to navigate the COVID pandemic and its macro-economic impacts, I can report that we have continued to make progress against our revised strategy and the business is in a significantly stronger place than a year ago. We have strengthened our financial position and are now operating in a higher commodity price environment as worldwide demand recovers.  Operationally the highlight is undoubtedly Wressle, where production has significantly exceeded our expectations and the material revenues from this asset will transform the cash flow for the business in the current period and beyond, providing optionality for near-term growth opportunities in line with our stated strategy.”View or download Egdon Resources 2021 Preliminary Results

Egdon Resources plc (AIM:EDR) advises that its planning application for a side-track drilling operation, associated testing and long-term oil production at the Biscathorpe site, was refused at today’s meeting of the Lincolnshire County Council Planning Committee.The application had been recommended for approval by Lincolnshire County Council’s planning officers.We will await the formal decision notice before taking advice and considering our options including an appeal.

Operational UpdateEgdon Resources plc (AIM: EDR, "Egdon"), an established exploration and production company focused on the hydrocarbon-producing basins of the onshore UK, provides an update on operations across its portfolio.Key Highlights:

• Initial production from Wressle-1 surpassing expectation at 884 barrels of oil per day (“bopd”) and 480,000 cubic feet of gas per day on a restricted choke with no formation water seen.
• Plans to reduce production constraints and define plateau rate at Wressle-1.
• Planning application for the side-track drilling, testing and production at Biscathorpe to be heard in November.
• Shell U.K. Limited advises that the 3D seismic survey over the Resolution and Endeavour gas discoveries has been delayed beyond February 2022.
• Detailed well design, facilities specification, and commercial modelling nearing completion for the phased redevelopment of the shut-in Waddock Cross oil field with a Final Investment Decision expected to be made by the end of 2021, which could lead to further drilling activity during 2022.
• Detailed reservoir engineering work underway at Keddington to support target selection for a side-track development well, which could be drilled in 2022 and access gross Mean Contingent Resources of 567,000 barrels of oil which remain to be produced.
• A programme to plug and abandon the existing Dukes Wood-1 oil well and recomplete this for geothermal heat production has been developed and will shortly be submitted to the HSE.

Wressle PEDL180 & PEDL182 (Egdon 30%):The Wressle-1 well has continued to exceed production expectations since the successful completion of the coiled tubing operations on the 19 August 2021. To date, instantaneous flow rates in excess of 884 barrels of oil per day (“bopd”) along with 480,000 cubic feet of gas (c. 80 barrels of oil equivalent per day) have been achieved from the Ashover Grit on a significantly restricted choke setting (30.5/64ths) and with a high flowing wellhead pressure. Thus far, no formation water has been seen as the well continues to clean up.Even with the excellent flow rates seen to date, the full flow potential of the well remains to be fully tested due to constraints being experienced with the gas handling equipment.The forward plan is to remove these constraints to production and complete the testing of the well’s potential before defining a plateau production rate matching the well behaviour to the installed facilities, long term operational objectives and prudent reservoir management.We can also advise that we have now received the revision to the Environmental Permit, enabling the installation of a combustion plant to facilitate gas to electric generation and a new potential revenue stream.Since being returned to production on 19 August the well has generated revenues in excess of £300,000 for Egdon.Biscathorpe PEDL253 (Egdon 35.8%):We now expect the planning application for the side-track drilling, testing and production at Biscathorpe to be heard at a meeting of Lincolnshire County Council’s planning committee during November.Subject to planning the Biscathorpe side-track will target the Dinantian Carbonate, where a 68 metre oil column was discovered in Biscathorpe-2, with gross Mean Prospective Resources of 2.55 million barrels of oil (mmbo), and the Basal Westphalian Sandstone, where gross Mean Prospective Resources of 3.95 mmbo have been estimated by Egdon.P1929 & P2304 Resolution and Endeavour (Egdon 30%):Egdon has been advised by licence operator, Shell U.K. Limited, that the 3D seismic survey planned for February 2022, over the Resolution and Endeavour gas discoveries, will not proceed on the original expected timeline. Shell will consult with the OGA to discuss the delay to the survey and we will provide a further update once these discussions have progressed.A Competent Person’s Report (Schlumberger Oilfield UK PLC) has reported gross Mean Contingent Resources of 231 billion cubic feet (“bcf”) of gas attributable to the Resolution discovery with Egdon estimating that the Endeavour discovery contains gross Mean Contingent Resources of 18 bcf of gas. Waddock Cross PL090 (Egdon 55%):Third party work is currently ongoing to finalise the well design, facilities specification, and commercial modelling for the phased redevelopment of the shut-in Waddock Cross oil field in Wessex Basin licence PL090. Independent reservoir modelling has shown that a new horizontal well on the field could yield commercial oil production (500-800 bopd). Given the large in- place oil volume (Mean oil in place of c. 57 million barrels of oil) this asset has been high graded by the Company as planning consent and facilities are in place to test this significant opportunity.A final investment decision is expected to be made by the end of 2021 which could lead to further drilling activity during 2022.Keddington PEDL005R (Egdon 45%):As previously reported, a detailed sub-surface review of the Keddington oil field and the surrounding licence area has highlighted that gross Mean Contingent Resources of 567,000 barrels of oil remain to be produced. This presents an opportunity to increase production via a development well for which planning is already in place.Detailed reservoir engineering work is currently being undertaken by ERCE to support the final target selection for a side-track development well, which could be drilled in 2022.In addition, a near-field exploration opportunity exists at Keddington South, (gross Mean Prospective Resources of 635,000 barrels of oil) and the Louth Prospect (gross Mean Prospective Resources of 600,000 barrels of oil).Geothermal:A programme to plug and abandon the existing Dukes Wood-1 oil well and recomplete this for geothermal heat production has been developed for Egdon by Creative Geothermal Solutions Limited and will shortly be submitted to the HSE. It is anticipated that subject to regulatory approval, this work will commence during Q1 2022.Mark Abbott, Managing Director of Egdon, commented:"The Wressle well test operations continue to exceed our expectations with instantaneous rates of over 950 barrels of oil equivalent per day achieved so far.  The well has already begun to yield a material revenue stream which will transform the financial position of Egdon in the coming period.  This production rate means that Wressle is currently the second biggest field in terms of daily production in the onshore UK after Wytch Farm, and we are confident that the well has more to give in the coming period.We await confirmation from Shell regarding next steps for the Resolution 3D seismic, and we remain optimistic about the long-term potential of this long-burner project for Egdon.  Elsewhere in our portfolio, we are making good progress with several nearer-term projects capable of adding further production, revenues and value to the business.  We are pleased to see activity gaining momentum across the portfolio and look forward to an active year ahead. I am also pleased with progress in our nascent geothermal business with plans being advanced for repurposing of the Dukes Wood-1 well and wider opportunities being considered.”

Egdon Resources plc (AIM: EDR, "Egdon"), an established exploration and production company focused on the hydrocarbon-producing basins of the onshore UK, is pleased to provide an update on operations at its Wressle Oil Field Development (“Wressle”) located in North Lincolnshire, covered by Licences PEDL180 and PEDL182 and where the Company holds a 30% operated interest.Egdon is pleased to advise that the proppant squeeze operation on the Ashover Grit reservoir interval in the Wressle-1 well has been completed safely and successfully. A total of 146 cubic metres of gelled fluid with 17.3 tonnes of ceramic proppant were injected into the Ashover Grit formation in line with the authorised programme. The injection operations lasted a total of only 1 hour and 30 minutes over a two-day period.There were no health, safety, environmental or security issues experienced during the operations; and as predicted, real time monitoring confirmed there was no induced seismicity and that the noise levels were well within the permitted limits. The operation was subject to a pre-operational inspection by the Health and Safety Executive and active monitoring by the Environment Agency. Ground and surface water monitoring has continued in accordance with the requirements of the Environmental Permit.All equipment and personnel associated with the operation have now demobilised from site.The Wressle well will now be subject to a coiled tubing operation to fully clean out the production tubing prior to bringing the well back into production through the site’s permanent production facilities. Based on the implemented programme, pre-operational simulation modelling concluded that the proppant squeeze operation would result in constrained flow rates of 500 barrels of oil per day (gross). Once the well is brought back into production, we will provide a further update to report on the stabilised flow rates achieved from the proppant squeeze.Mark Abbott, Managing Director of Egdon, commented:"I am pleased to report on the safe and successful completion of the proppant squeeze operations at Wressle.  I would like to thank our team of contractors and staff for the highly professional way in which the operations were undertaken with no adverse impact on the environment or the amenity of our neighbours.I now look forward to the well being placed back on production and reporting on the positive impact of the operation on future oil production from the site in the coming weeks.”

Egdon Resources plc (AIM: EDR, "Egdon"), an established exploration and production company focused on the hydrocarbon-producing basins of the onshore UK, is pleased to provide an update on operations at its Wressle Oil Field Development (“Wressle”) located in North Lincolnshire, covered by Licences PEDL180 and PEDL182 and where the Company holds a 30% operated interest.Egdon is pleased to advise that the coiled tubing operation has been completed safely and successfully and the Ashover Grit reservoir has been returned to flow, under extended well testing operations. The well flow is continuing to clean-up and has not yet reached its full potential. The measured flow rates have exceeded 500 barrels of oil per day under a restricted choke setting, which was the forecast rate following the proppant squeeze operation.We will provide a further update once stabilised flow rates are established in the coming weeks.Mark Abbott, Managing Director of Egdon, commented:"I am delighted to advise that the proppant squeeze operation has been successful in enabling the Wressle well to deliver the target production rate of 500 barrels of oil per day. Oil production will be optimised whilst the Ashover Grit reservoir continues to clean-up.  With this additional 150 barrels of oil per day net to Egdon and the current strong oil price, Wressle will have a transformational impact on Egdon’s near-term cash flow.Considerable upside remains in the additional reservoirs at Wressle and in adjacent prospects and we expect Wressle to be an important asset for Egdon for a number of years to come.I would like to take this opportunity to thank all of Egdon’s contractors who have contributed so effectively to delivering this milestone event for the Wressle joint venture.”

Egdon Resources plc (AIM: EDR) is pleased to announce that at the General Meeting held at 10.00 hours today Shareholders approved all the resolutions proposed in the notice of general meeting sent to Shareholders on 1^st July 2021. Capitalised terms not defined in this announcement shall have the meaning ascribed to them in the notice of meeting.

• Resolution 1, was an ordinary resolution to grant the directors authority to allot Second Tranche Shares, with 01% voting in favour and 0.99% voting against;
• Resolution 2, was an ordinary resolution to grant the directors authority to allot shares pursuant to the exercise of Warrants, with 01% voting in favour and 0.99% voting against, and;
• Resolution 3, was proposed as a special resolution, to disapply pre-emption rights as set out in the notice of the meeting, with 99.07% voting in favour and 93% voting against.

View or Download GM Results

Egdon Resources plc (AIM: EDR, "Egdon"), an established UK-based exploration and production company focused on the hydrocarbon-producing basins of the UK, is pleased to advise the positive results of a Carbon Intensity study carried out on the Biscathorpe project covered by Licence PEDL253 where the Company holds a 35.80% operated interest.The study was conducted on behalf of the PEDL253 Joint Venture by Gaffney, Cline & Associates Limited (“GaffneyCline”), an international energy consultancy. GaffneyCline’s study delivered the following conclusions:

• The Biscathorpe project as currently envisaged has an AA rating for Carbon Intensity for its potential long-term production of oil using GaffneyCline’s own rating system
• The Carbon Intensity for the Biscathorpe project is significantly lower than the current UK average and compared with other onshore analogues
• Once in production, GaffneyCline estimates that the Biscathorpe project will have a Carbon Intensity of just 3.06 grams of Carbon Dioxide equivalent per mega joule (gCO₂Eq/MJ)
• Potential exists to improve the Carbon Intensity to 1.49gCO₂Eq/MJ through adoption of gas to grid optimisation

The Carbon Intensity of the Biscathorpe project was estimated by GaffneyCline as a conceptual field development using the Oil Production Greenhouse Gas Emissions Estimator (OPGEE) developed at Stanford University. This was supplemented by reference to GaffneyCline’s proprietary Global field database together with Biscathorpe specific field development assumptions. The results of the study were benchmarked against other development analogues in GaffneyCline’s proprietary database. The study also provided recommendations that could have a further impact on reducing emissions sources (Figure 1).Table 1: Biscathorpe Project Carbon Intensity Rating (Source: GaffneyCline, July 2021)Carbon Intensity Range (gCO₂ Eq/MJ)CurrentPotentialAA≤53.061.49A5 - 7B7 - 11C11 - 20D20 - 30E30 - 50F50 - 70GOver 70Egdon can also advise that additional documentation was submitted to Lincolnshire County Council in early July in response to a Regulation 25 notice arising from the initial consultation on the planning application for the Biscathorpe project. This information will now be subject to a period of consultation before the planning application goes before the Planning Committee, currently anticipated to be in September/October 2021.Mark Abbott, Managing Director of Egdon, commented:"The results of GaffneyCline’s independent modelling provides strong evidence that a future development at Biscathorpe could achieve a low carbon intensity rating (AA).  The Climate Change Committee has acknowledged that the UK will still be using fossil fuels up to and beyond the UK’s Net Zero carbon emissions target of 2050. It follows that the production of fossil fuels should be from that which generates the lowest emissions footprint, which, like Biscathorpe, are indigenous UK sources.I am also pleased to confirm the submission of additional information in support of our planning application for the Biscathorpe project. This is expected to be considered by the Planning Committee later in 2021. Biscathorpe represents a material and financially robust opportunity to secure an indigenous oil resource which would generate local and regional economic benefits and have environmental benefits through its lower carbon footprint when compared to imported oil.”

Conditional Equity Fundraising of approximately £1.44 million, Issue of Warrants, Exercise of Convertible Loan Notes and Notice of General Meeting Egdon Resources plc (AIM: EDR, "Egdon"), an established UK-based exploration and production company focused on onshore exploration and production in the hydrocarbon-producing basins of the UK, is pleased to announce that it has conditionally raised approximately £1.44 million before costs via a subscription for new ordinary shares of 1 pence each in the Company (the "Subscription Shares"). It also announces that the holders of the Convertible Loan Notes have exercised their right to convert into new ordinary shares of 1 pence in the Company (the “Conversion Shares”) (together the “New Ordinary Shares”).FundraisingThe Company has conditionally raised approximately £1.44 million (the "Subscription") through the issue of 115,228,000 Subscription Shares at a price of 1.25 pence per share (the "Issue Price"). The Issue Price represents a 16.67 per cent. discount to the closing price (of 1.50 pence) of the existing ordinary shares of 1 pence each (“Ordinary Shares”) on Tuesday 29 June 2021, the last trading day prior to this announcement. In addition, each Subscription Share will be granted a right to subscribe for 0.5 of a new Ordinary Share at a price of 2.5 pence per share, exercisable at any time until the date of the second anniversary of their issue (“Warrant”).Highlights

• Subscription for 115,228,000 new Ordinary Shares at an issue price of 1.25 pence per Subscription Share to raise gross proceeds of £1.44 million

• Subscription for £663,100 at 1.25 pence per Subscription Share by the Concert Party to maintain its percentage shareholding

• The net proceeds of the fundraising receivable by the Company will be used primarily to:
• Provide additional operational funding once the Wressle Field Development Plan receives regulatory approval;
• Provide funding for Licence fees and costs of the offshore Resolution and Endeavour gas discoveries;
• Provide funding in support of Egdon’s nascent geothermal projects;
• Provide working capital for continued business development; and
• The redemption at par of the Company’s 50,000 £1 redeemable preference shares.

• Certain Directors, including Mark Abbott (Managing Director), have participated in the Subscription

Mark Abbott, Managing Director of Egdon, commented:"We are very pleased by the level of support from both existing and new investors for this Subscription. The funds raised will enable Egdon to strengthen its liquidity position and provide additional funding of ongoing core projects.  We are pleased with the continuing support of Petrichor and the Concert Party and also welcome Shard Capital as a new cornerstone shareholder."Conversion of Convertible Loan NotesEgdon has also received notice from the holders of the £1.05 million Convertible Loan Notes of the conversion of all outstanding Convertible Loan Notes at the Conversion Price of 1.55 pence per Ordinary Share. Conversion of the Convertible Loan Notes (including the capitalisation of interest which has accrued on the Convertible Loan Notes) will result in the issue to Petrichor Partners of a maximum of 69,684,386 Ordinary Shares and the issue to Jalapeño of a maximum of 3,549,020 Ordinary Shares (together, the “Conversion Shares”), increasing the total interest of the Concert Party to a maximum of 184,876,452 Ordinary Shares, representing 46.04 per cent. of the Company’s enlarged ordinary share capital following the issue of the Conversion Shares.The issue of the Conversion Shares was the subject of a Whitewash procedure granted by the Panel on Takeovers and Mergers in January 2021 as previously announced.Application for Admission of New Ordinary Shares to AIMAn application will be made to the London Stock Exchange for the Conversion Shares and for the First Tranche Shares to be admitted to trading on the AIM Market of the London Stock Exchange and it is expected that admission of the Conversion Shares and the First Tranche Shares will become effective on or around Friday 9 July 2021.An application will be made to the London Stock Exchange for the Second Tranche Shares to be admitted to trading on the AIM Market of the London Stock Exchange following the General Meeting to be held on Tuesday 20 July 2021 and it is expected that admission of the Second Tranche Shares will become effective on or around Wednesday 21 July 2021.The Subscription Shares and Conversion Shares will rank pari passu with the Company’s existing Ordinary Shares in all respects.Concert PartyThe Concert Party comprises HEYCO Energy Group, Inc. HEYCO International Inc., Petrichor Holdings Coöperatief U.A, Jalapeño Corporation and Petrichor Partners, LP (and its limited partners).Following admission of the Conversion Shares and the First Tranche Shares, the Concert Party will hold in aggregate 226,241,452 Ordinary Shares (representing 46.04 per cent. of the enlarged share capital).Following admission of the Second Tranche Shares, the Concert Party will hold in aggregate 237,924,452 Ordinary Shares (representing 46.04 per cent. of the enlarged share capital).Related Party TransactionsAs the Concert Party is currently interested in more than 10 per cent. of the issued ordinary share capital of the Company, the subscription for £663,100 of the Subscription Shares is a related party transaction for the purposes of Rule 13 of the AIM Rules for Companies.Mark Abbott is a Director of the Company will be subscribing for £20,000 of new Ordinary Shares.Martin Durham is a Director of the Company will be subscribing for £2,500 of new Ordinary Shares.The participation in the Subscription by the Concert Party, Mark Abbott and Martin Durham constitutes related party transactions under the AIM Rules for Companies.The Directors of the Company (with the exclusion of Mark Abbott and Martin Durham), having consulted with the Company’s nominated adviser, WH Ireland Limited, consider the terms of the Subscription to be fair and reasonable insofar as the Company’s shareholders are concerned.General MeetingSince the Company does not currently have sufficient authority to allot all of the Subscription Shares, they will be issued in two tranches. The first tranche will be issued on Wednesday 7 July 2021 and will comprise 89,845,000 Subscription Shares (“First Tranche Shares”). The second tranche, to be issued on passing of the resolutions at the General Meeting, will comprise 25,383,000 Subscription Shares (“Second Tranche Shares”).A General Meeting is required to approve the issue of the Second Tranche Shares and to provide the Company sufficient authorities for the issue of Ordinary Shares arising from the exercise of the Warrants. The General Meeting is to be held at 10.00 a.m. on Tuesday 20 July 2021. A Notice of General Meeting will be sent to shareholders on or around the date of this announcement.The Company notes the guidance issued by the UK government restricting social gatherings in view of the ongoing COVID-19 pandemic and the fact that, if such guidance remains in place on the date of the General Meeting, as seems likely, shareholders will be prohibited from attending the General Meeting. Given the current guidance the Company requests that shareholders do not attend the General Meeting but instead appoint the chairman of the General Meeting as a proxy to ensure their vote is recognised and provide voting instructions in advance of the General Meeting. Other named proxies will not be allowed to attend the General Meeting and their votes will not be counted.Total Voting RightsThe current issued share capital of the Company is 328,315,625 Ordinary Shares, each with voting rights. This 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 and Transparency Rules.Following admission of the Conversion Shares and First Tranche Shares on or around Friday 9 July 2021, the Company's enlarged issued share capital will comprise 491,394,031 Ordinary Shares, each with voting rights.Following admission of the Second Tranche Shares on or around Wednesday 21 July 2021, the Company's enlarged issued share capital will comprise 516,777,031 Ordinary Shares, each with voting rights.This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014 ("MAR"). In addition, market soundings (as defined in MAR) were taken in respect of the Subscription with the result that certain persons became aware of inside information (as defined in MAR), as permitted by MAR.  This inside information is set out in this Announcement.  Therefore, those persons that received inside information in a market sounding are no longer in possession of such inside information relating to the Company and its securities.View or Download Proxy FormView or Download Notice of General Meeting