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, reports the following operations update ahead of the announcement of the Company’s Final results scheduled for 11 November 2014.
Egdon continues to make good progress across the business. Average net daily production for the financial year to 31 July 2014 was 238 boepd against our production guidance of 200 boepd, helped by strong performance from the Ceres gas field. Liquids production for the period was 53 boepd net.
Additional detailed work has now confirmed the preliminary evaluation of the Wressle-1 well results, which were announced on 2 September 2014 and which indicated potential hydrocarbon bearing zones in three separate reservoir intervals. We are currently finalising the design and logistics for the testing programme and expect to commence testing using a work-over rig during November 2014 following the drilling of the Burton on the Wolds-1 conventional exploration well where operations have now begun.
The Company will be an active participant in the 14th UK Landward Licensing Round which closes on 28 October 2014, with any new licence awards anticipated during 2015.
The next six months will be busy for Egdon, with a new operated drilling campaign expected to commence early in 2015. This programme is expected, subject in part to planning consent, to comprise three operated onshore exploration wells for conventional hydrocarbons at Laughton, North Kelsey and Biscathorpe. In addition operations at the non-operated Kiln Lane well could start before year end. This programme of wells will expose the Company to material resource potential. Additional wells for both conventional and unconventional hydrocarbons are planned for drilling later in 2015.
The Company will be announcing its Final results for the year ended 31 July 2014 on Tuesday 11 November 2014. There will be an analyst meeting at 9.30am at the offices of Buchanan, 107 Cheapside, London, EC2V 6DN.
Commenting on this update Mark Abbott, Managing Director of Egdon said:
“We have made good progress with all aspects of the business over the last year and I look forward to updating shareholders in detail on 11 November. The coming few months will see the results of the Burton on the Wolds exploration well, testing of Wressle-1 and the start of a further conventional drilling programme.”