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Any proxies already submitted will remain valid for the AGM unless superseded by a new proxy.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.