Egdon Resources — H1 2019-20 Earnings Presentation
20 slides from Egdon Resources's earnings presentation, Apr 21, 2020
Slide 1: Interim Results & Business Review
Egdon Resources plc Interim Results & Business Review www.egdon-resources.com 1 Interim Results & Business Review - April 2020
Slide 2: Egdon at a Glance
Egdon at a Glance • Established oil & gas exploration & production company formed in 1997 • Onshore UK focus • Existing production and revenue • Nearshore gas appraisal opportunities and significant exploration assets • Significant unconventional resources acreage/gas resource position Production **
Slide 3: Positive Start to 2020
Positive Start to 2020 Notwithstanding the current unprecedented macro-economic environment with Coronavirus (COVID-19) and the impact on global oil price, 2020 has started well for Egdon with positive catalysts for the business: • H1 2019-20 Production of 178 boepd – in line with guidance • Grant o
Slide 4: Coronavirus (COVID-19)
Coronavirus (COVID-19) • The primary concern and focus for the Company at this time is the health and safety of our employees, contractors and other stakeholders. • The Egdon office is closed with all staff working from home using well tried systems • To date there have been no incidents of infectio
Slide 5: Financials
Financials Interim Results for the six months ended 31 January 2020 • Oil and gas revenues during the period of £0.675 million (H1 2019: £1.210 million) • Loss of £1.044 million (H1 2019: £0.72 million) before impairments • Overall loss for the period of £3.235 million including £2.191 million of im
Slide 6: Strategy
Strategy Status/Progress ✓ Planning approval for Wressle field development – H2 2020 start-up ✓ H1 2019-20 Production = 178 boepd ✓ Field rejuvenation under review for shut-in fields at Waddock Cross & Kirkleatham ✓ Cost reductions ✓ Biscathorpe project upgraded ✓ Farmout concluded with Shell U.K. L
Slide 7: Production
Production 7 • Financial year 2019-20 target production of 130-140 boepd • H1 2020 Production of 178 boepd in line with guidance 1 • 4 Production from the Ceres(1), Keddington(2) and Fiskerton Airfield(3) 2 fields 8 3 • Appeal upheld for Wressle(4) field development – expected first production H2 20
Slide 8: Producing Assets
Producing Assets • Egdon 10% (Spirit operated) • Offshore gas field Ceres • Single producing well from Leman Sandstone reservoir • Back-out gas now fully recovered from Mercury field with Neptune field ongoing • Impairment of £506K due to current low gas prices • Egdon 45% (Operator) • Late life pro
Slide 9: Wressle Update
Wressle Update • Inspector upheld our appeal following a Public Inquiry held 5-7 November 2019 • Cost recovery from North Lincolnshire Council • Wressle – (EDR 30%) Gross 2P Reserves 0.62 mmbo and 2C Resources 1.53 mmbo • Expected initial production rate of c. 500 bopd (150 bopd net Egdon) • Forward
Slide 10: Shut-in Fields
Shut-in Fields • Egdon 55% (Operator) • Shut-in Bridport Sandstone oil field (Dorset) • 2 producing wells Waddock Cross • Significant oil volume in place • Additional development wells under consideration. Side-track options. • Egdon 26.67% (IGas operated) • Shut-in Great Oolite oil field (Hampshire
Slide 11: Resolution & Endeavour Gas Discoveries
Resolution & Endeavour Gas Discoveries • Farm-in agreement signed with Shell U.K. Limited for P1929 and P2304 • Shell to carry 85% of 3D seismic costs and 100% of manpower costs to well investment decision to earn a 70% interest (Egdon retains 30%) • OGA licence extensions granted for P1929 (Resolut
Slide 12: Biscathorpe-2 Update
Biscathorpe-2 Update • Biscathorpe-2 (EDR: 44.75%) drilled to a TD of 2133 m in February 2019 • Well suspended for potential side-track • Now completed extensive and detailed studies including the reprocessing and remapping of 264 square kilometres of 3D seismic • Accessible target areas have been i
Slide 13: North Kelsey Prospect
North Kelsey Prospect • 3D defined prospect with multiple reservoir targets – Wressle analogue North Kelsey • Mean Gross Prospective Resources of 6.5 mmbo Prospect • Drilling likely to be deferred to 2021 due to COVID-19 restrictions and subject to consents being extended Top Dinantian Depth Map (m
Slide 14: Shale Gas Assets
Shale Gas Assets • Highly successful in growing the Company’s exposure to unconventional resource exploration opportunities in Northern England - East Midlands focus • Delivered significant growth in acreage and Gas Initially in Place (GIIP) since 2014 (acreage 186,625 acres, 51 TCF GIIP) • The writ
Slide 15: Gainsborough Trough
Gainsborough Trough • Gainsborough Trough = Egdon core area • Egdon = third largest acreage holder with 82,000 net acres • Highly positive preliminary results from Springs Road-1 (EDR 14.5% carried) begins to validate Egdon’s strategic focus on the Gainsborough Trough • Basin characterised by simple
Slide 16: Springs Road-1 Results
Springs Road-1 Results • Springs Road-1 drilled in Q1 2019, to a depth of 3500m, with 147 m of core collected and analysed along with an extensive suite of wireline log and other data • Egdon’s 14.5% interest fully carried • 429m of hydrocarbon bearing shales encountered within the primary target –
Slide 17: Business Development
Business Development • We will continue to review a number of opportunities in the energy space that leverage our expertise • Focus is on opportunities offering the following characteristics • Existing geography • Low geological risk • Low surface risk • Near term predictable cashflows • Opportuniti
Slide 18: Priorities & Outlook
Priorities & Outlook • Production guidance for the full financial year 2019-20 is 130-140 boepd, from Ceres, Keddington and Fiskerton Airfield Our key operational focus for the coming period will be: • Managing costs and cash through the current unprecedented operating environment • Developing the W
Slide 19: Summary
Summary ✓ Farm-in concluded with Shell for Resolution & Endeavour gas discoveries “Significant ✓ Planning for Wressle oil field granted on appeal conventional resources ✓ Oil discovered in Biscathorpe-2 Dinantian Limestone = secondary target to exploration/appraisal identified Westphaslian Sandstone
Slide 20: Disclaimer
Disclaimer This document comprises the written materials/slides for a presentation (together with any accompanying information communicated verbally (including any questions and answers session and any material distributed with it), the Presentation) by Egdon Resources plc (the Company). This Presen