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 2018.
Operational and Corporate Highlights
- Completion of site construction at Springs Road (PEDL140) where the operator, IGas, has advised it expects to commence drilling following completion of Tinker Lane-1 in H1 2019
- Acquisition of an additional 5% interest in PEDL180 and PEDL182 (Wressle) from Celtique Energie Petroleum Limited for a deferred cash payment
- Acquisition of 100% interest in Promote Licence P2304 from Arenite Petroleum Limited and Europa Oil & Gas Limited
- Completion of the acquisition of the producing Fiskerton Airfield oil field in Lincolnshire licence EXL294 and subsequent sale of 20% interest to Union Jack Oil plc to balance financial risk
- Gross production of 30,923 barrels of oil equivalent (“boe”) (84 barrels of oil equivalent per day (“boepd”)) (2017: 38,346 boe; 105 boepd) from Ceres, Keddington, Fiskerton Airfield and, for part of the period, Avington
- Farm-out of interests in PEDL253 (Biscathorpe) to Union Jack Oil plc and Humber Oil & Gas Limited
- Extension of existing consents for a further 3 years at both North Kelsey and Biscathorpe
- Submission of a new planning application for the Wressle field development to address in detail all matters highlighted by the Planning Inspector in his January 2018 dismissal of the appeals heard in November 2017
Financial Highlights
- Gross oil and gas revenues during the period of £1.00 million (2017: £1.04 million) offset by a write-off of £0.22 million (2017: £Nil) in respect of Ceres accrued back-out revenue
- Loss for the year-ended 31 July 2018 of £1.98 million after write-downs, pre-licence costs and impairment reversals of £0.40 million (2017: loss of £1.70 million after write-downs, pre-licence costs and impairments of £0.19 million)
- Basic loss per share of 0.76p (2017: basic loss per share of 0.68p)
- Cash at bank £2.77 million as at 31 July 2018 (2017: £6.06 million)
- Net current assets as at 31 July 2018 of £2.87 million (2017: £6.40 million)
- Net assets as at 31 July 2018 of £30.72 million (2017: £32.70 million)
Subsequent Events
- Appeal submitted during September against the refusal by North Lincolnshire Council to extend the existing planning consent at the Wressle-1 wellsite
- Holmwood site lease not renewed by the Forestry Commission and planning application withdrawn
- Completion of the installation of a new flow meter and restoration of production from the Ceres well
- Restart of works to complete the site construction at Biscathorpe-2 with drilling expected to commence late in 2018
- Consent for fracking at Preston New Road awarded to Cuadrilla, fracking operations commenced during October
Commenting on the results, Philip Stephens, Chairman of Egdon said;
“2018 represents a landmark year for unconventional resources exploration in the UK with the commencement of hydraulic fracturing at Preston New Road in Lancashire. Shale gas is a vital commodity to the nation and one that can be produced in an environmentally safe manner. Egdon Resources is one of the main acreage holders of prospective shale gas resources in the UK and we expect to participate in our first exploration test in the East Midlands with the drilling of the Spring Roads-1 well in 2019. The company’s overall strategic objectives are intact, despite the delays in bringing our oil discovery at Wressle through to production. Our commitment to conventional resources exploration remains, as demonstrated by the planned near-term drilling of the exploration well at Biscathorpe-2 where site construction is nearing completion.. Our financial position is good and 2019 promises to be an exciting year for Egdon and the onshore UK oil and gas industry as a whole.”