Egdon Resources — FY2012 Earnings Presentation
28 slides from Egdon Resources's earnings presentation, November 2012
Slide 1: Egdon Resources plc Preliminary Results for the year ended 31 July 2012
Egdon Resources plc Preliminary Results for the year ended 31 July 2012 & Business Review Preliminary Results – Year ended 31 July 2012
Slide 2: Egdon Overview
Egdon Overview • An AIM listed oil and gas exploration and production company focused on onshore UK and mainland Europe • A balanced portfolio of production, development, appraisal and exploration projects with exposure to conventional and non-conventional plays • Extensive European portfolio of 29
Slide 3: Egdon Resources plc - Vision & Strategy
Egdon Resources plc - Vision & Strategy “The aim of the Group is to create shareholder value by building a profitable and material exploration business with a focus on onshore European operations ” Strategy: Recognising the key strengths of the company and now inclusive of the prospective unconventi
Slide 4: Financial Highlights
Financial Highlights • Revenues from oil and gas sales during the period up 9.9% to £2.61 million (31 July 2011: £2.38 million) • Loss for the year £2.89 million (31 July 2011: profit of £4.07 million) • Impairment charge recognised of £3.15 million (31 July 2011: £0.23 million) • Negative goodwill
Slide 5: Operational/Corporate Highlights
Operational/Corporate Highlights • Portfolio of 29 licences in the UK and France as at 31 July 2012 (2011: 29) • Production 45,656 barrels of oil equivalent (2011: 46,919 barrels of oil equivalent) • 3D seismic programme completed over Broughton and Wressle prospects in PEDL180/182 • Completion of e
Slide 6: Egdon Revised Focus Areas
Egdon Revised Focus Areas • 29 Licences (3 awaiting award) • All Egdon’s licences in proven producing basins in the UK and France • Strategy of rationalising and improving Egdon’s portfolio • Revised strategy to focus on fewer higher-potential assets in three core areas: 1. Northern England 2. South
Slide 7: Northern England Core Area
Northern England Core Area • Production = Keddington, Dukes Wood/Kirklington, Ceres, Kirkleatham • Appraisal = Nooks Farm, Westerdale • Exploration = conventional and non- conventional (shale-gas) • Biscathorpe Prospect • Broughton Prospect • Burton on the Wolds • Eakring North • Louth Prospect • No
Slide 8: Northern England - Keddington Oil Field
Northern England - Keddington Oil Field PEDL005 (remainder): Egdon 75% and operator • Look to maximise value of “greater Keddington area” • Target production in short term of 70-80 bopd • Imminent sanction of 1.35 MW gas to electricity generation project – 9 month lead time • Additional development
Slide 9: Northern England - Ceres Gas Field
Northern England - Ceres Gas Field P.1241 (47/9): Egdon 10% - non-operated • No significant contribution to production during period • Infrastructure issues – Perenco assume operatorship November 2012 • Expected to resume production during this quarter (shortly) • Expected gross production of c. 20
Slide 10: Northern England– Kirkleatham Gas Field & Westerdale-2
Northern England– Kirkleatham Gas Field & Westerdale-2 Kirkleatham PEDL068: Egdon 40% and operator • Gas sold to Sembcorp at Wilton for use in Gas Turbine (GT2) • Water loading issues in tubing – well shut-in awaiting recompletion/sidetrack • Options to sidetrack from existing well to up-dip area of
Slide 11: Northern England - Dukes Wood/Kirklington
Northern England - Dukes Wood/Kirklington Dukes Wood/Kirklington: PEDL’s 118 & 203 – Egdon 50% operated • To be jointly developed - Kirklington-3z and Dukes Wood-1 • Dual completion of DW-1 = water disposal hub • September 2012 production start-up at c. 20-25 bopd (net Egdon 10-12.5 bopd) • Further
Slide 12: Northern England - Broughton/ Wressle / North Kelsey
Northern England - Broughton/ Wressle / North Kelsey • 3D Defined prospects Broughton Prospect: PEDL182 – Egdon 33.33% operated • Broughton-B1 flowed oil (40 bopd) • Up-dip potential identified and additional reservoir targets • Net Egdon Best Estimate Prospective Resources : 1.0 mmbo Wressle Prospe
Slide 13: Northern England - Burton on the Wolds Prospect
Northern England - Burton on the Wolds Prospect Burton on the Wolds: PEDL201 – Egdon 37.5% operated • Defined on 2011 proprietary 2D seismic survey • Twin objectives: • Conventional target, productive at nearby Rempstone oil field • Seismic anomaly underlies four-way dip structure = possible reef •
Slide 14: Northern England- Non-Conventional Assets
Northern England- Non-Conventional Assets • Egdon is exposed to the exploration and evaluation phases of UK shale-gas plays • Egdon has an existing acreage position which exposes the Company to near-term non-conventional hydrocarbon drilling (“Bowland Shale” equivalent in Gainsborough Trough) • CPR
Slide 15: Southern England Core Area
Southern England Core Area • Production = Avington, Waddock Cross development in 2013 • Appraisal = Markwells Wood, Langton Herring, North Avington • Exploration = conventional • Sherwood Prospects Wessex Basin • Broadmayne, Casterbridge, Winfrith • Bridport and Frome Limestone prospects Wessex Basi
Slide 16: Southern England – Avington & Waddock Cross
Southern England – Avington & Waddock Cross Avington: PEDL070 – Egdon 26.67% • Produces from 2 wells in the Great Oolite reservoir • Production at c. 70 bopd • Additional development drilling locations continue to be considered • 3P net Egdon Reserves of 0.043 mmbo • North Avington prospect = potent
Slide 17: Southern England – Wessex Basin
Southern England – Wessex Basin Sherwood Sandstone Oil Play Dorset: PEDL237/PL090 – Egdon 55% operated interest • Analogous to the Wytch Farm oil field • Prospects with combined potential of 33 mmbo Net Egdon Best Estimate Prospective Resources • Possible 3D seismic acquisition and drilling 2013 • P
Slide 18: France Core Area
France Core Area • Conventional exploration focus • Production = Grenade Heavy Oil discovery • Appraisal = Pontenx • Exploration = high potential Triassic gas prospects • Audignon Prospect • Bastennes Gaujacq Prospect (on award of Donzacq) • Mairy Permit = Liassic test well to commence drilling by e
Slide 19: France – Triassic Gas Prospects
France – Triassic Gas Prospects • A significant un-tested play with successful analogues identified (e.g. Wessex Basin – Wytch Farm oil field) • Audignon Prospect = Identified sub-salt Bunter gas prospect with multi-TCF potential (Net Egdon 896 bcf) • Licence extension to be requested to enable acqu
Slide 20: France - Pontenx Prospect
France - Pontenx Prospect • Parentis Basin – on trend with Lucats & Cabeil oilfields • Numerous tested structural highs with oil shows and tests • Pontenx-3 oil discovery well – 36.5o API oil at maximum flow rates of 218 bopd on test • Planned 3D acquisition in early 2014 to delineate accumulation a
Slide 21: 2013-14 Planned Work Programme
2013-14 Planned Work Programme Egdon operated needs planning 2012 2013 2014 Activity oil/gas Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Drilling Nooks Farm-2 G Mairy-1 O Broughton-2 or Wressle-1 * * O Burton on the Wolds-1 * * O Keddington-5 * O ? Kirkleatham-5 * G ? Biscathorpe-2 * * O Louth-1 * * O North
Slide 22: Near-term Work Programme & Outlook
Near-term Work Programme & Outlook Production • Full-year production guidance of c. 125 boepd from Keddington, Avington, Dukes Wood/Kirklington and Ceres • Sustained production at Ceres could increase daily rates to 225 boepd • Resumption of production at Kirkleatham could increase daily rates to ov
Slide 23: Near-term Work Programme & Outlook
Near-term Work Programme & Outlook UK Shale-Gas • Summary CPR to be published on PEDL139/140 – Net Egdon GIIP of 1.74 tcf • Gainsborough Deep-1 exploration well planned for 2014 • Strategy to increase exposure to UK shale-gas acreage in near to medium-term • Resumption of shale-gas exploration in th
Slide 24: Summary
Summary “Despite recent near-term production set-backs, the existing and expected UK production and revenues, a renewed focus on farm-outs and non-core asset monetisation should enable Egdon to fund its drilling priorities and development of our non-conventional business to drive shareholder value d
Slide 25: Appendices
Appendices Slide 25 Preliminary Results – Year ended 31 July 2012
Slide 26: Egdon Resources plc - History
Egdon Resources plc - History Summary timeline: 1997 : Egdon formed by Andrew Hindle and Mark Abbott 1998 : First licence awarded in Wessex Basin 1999 : First French licence awarded 2000 : Listed on OFEX market and raised first equity 2000 : First licence awarded as operator 2003 : Drilled first exp
Slide 27: Egdon Board
Egdon Board 5. Jerry Field 6. Andrew Lodge 5. 6. (Exploration Director) Aged 56 (non-executive Director) Jerry graduated in 1977 and has over 30 years’ oil industry Andrew is a highly experienced geoscientist and oil industry experience in small-to-medium sized Exploration and manager. He is Explora
Slide 28: 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