Interim Results for the Six Months Ended 31 January 2017

11 April 2017

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

Financial Performance

  • 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

View or download 2017-04-11 EDR Interim Results Final