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 audited results for the year ended 31 July 2016.
Overview and Highlights
Operational and Corporate Highlights
- Production up 2% to 64,604 barrels of oil equivalent (“boe”) equating to 177 barrels of oil equivalent per day (“boepd”) and in line with guidance (2015: 63,149 boe; 173 boepd)
- Decision to proceed with Wressle field development with anticipated first production of 125 bopd net to Egdon in early 2017, subject to receipt of all required consents
- Successful in the 14th Onshore Licensing Round with the award of nine new licences within Egdon’s core focus areas increasing our net unconventional resources acreage by 43% to 200,000 acres
- Submission of Springs Road planning application in PEDL139/140 by operator IGas. Egdon is carried on up to two wells by Total and a planning decision is now expected during November
- 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. Egdon is carried on the initial well by UK Oil and Gas Investments plc
- Farm-outs concluded for PEDL005R (Keddington), PEDL209 (Laughton) and PEDL182 (Broughton North Prospect)
- Completed drilling of sidetrack development well at Keddington-5 and exploration well at Laughton-1 (dry hole) fulfilling earn-in obligation to PEDL209
Financial Highlights
- Oil and gas revenues during the period of £1.59 million (2015: £2.07 million)
- Loss for the period of £2.69 million for the year ended 31 July 2016 after net write downs and impairments of £0.72 million (2015: loss of £4.47 million after net write downs and impairments of £3.62 million)
- Basic loss per share of 1.21p (31 July 2015: basic loss per share of 2.02p)
- Cash at bank £2.68 million as at 31 July 2016 (31 July 2015: £5.18 million)
- Net current assets as at 31 July 2016 of £4.18 million (31 July 2015 : £7.18 million)
- Net assets as at 31 July 2016 of £29.43 million (31 July 2015: £32.05 million)
Post Balance Sheet Events
- Completed the acquisition of a further 20% in PEDL068 in the Cleveland Basin
- Completed the acquisition of additional interests in two new 14th Round licences, (PEDL306 and PEDL334) in the Company’s core East Midlands area
- Independent assessment reported an addition of mean undiscovered Gas Initially in Place (“GIIP”) of 20 Trillion Cubic Feet (“TCF”) to the Company’s previously assessed resource base primarily as a result of success in 14th Licensing Round, resulting in 71% increase to a new total mean undiscovered GIIP of 48TCF
Commenting on the results, Philip Stephens, Chairman of Egdon said;
“Although the past year has been particularly challenging for the energy sector, I am pleased to report that during the year we have continued to expand our areas of interest in terms of both conventional and unconventional resources assets whilst carefully and successfully managing both our cash resources and our exposure to exploration risk. We remain debt-free and on course to achieve our strategic objectives. I am particularly pleased to note the UK Government’s support for the important role that shale-gas could play in the UK’s future energy mix and feel confident in the quality of our portfolio of assets and our ability to achieve our objectives for the benefit of shareholders.”