Egdon Resources — FY2013 Earnings Presentation
27 slides from Egdon Resources's earnings presentation, Nov 6, 2013
Slide 1: Preliminary Results for the year ended 31 July 2013
Egdon Resources plc Preliminary Results for the year ended 31 July 2013 & Business Review Slide 1 Preliminary Results – year ended 31 July 2013
Slide 2: Egdon at a Glance
Egdon at a Glance AIM Listed (EDR) Formed 1997 Established Oil & Gas Exploration & Production Company Onshore UK & France focus Existing UK production of c. 200 boepd & cash flow Market Cap – c. £12 million (@ 8.5p per share) 30 Licences in the UK and France Strong opportunity base for growth Value
Slide 3: Egdon at a Glance
Egdon at a Glance Three Core Areas: Oil and Gas Reserves and Resource Estimates 1 Northern England proven + class of reserve/resource probable Units 2 Southern England 3 France Net Oil Reserves 0.33 MMstb Best Estim ate Net Oil Contingent Resources 3.42 MMstb Net Oil Prospective Resources (conventio
Slide 4: Strategy
Strategy Egdon Resources plc is an onshore focussed oil and gas exploration and production business : • An established oil and gas exploration and production company active onshore UK and France • A growth-focused business with 30 licences in proven oil and gas producing basins • A balanced portfoli
Slide 5: Operational Highlights
Operational Highlights • Attributable production of 79,947 barrels of oil equivalent (2012: 45,656 barrels of oil equivalent) • Drilled and completed wells at Huiron-1 and Nooks Farm • Award of offshore licence P.1929 (blocks 41/18 and 41/19), near-shore North Yorkshire containing significant gas di
Slide 6: Financial Highlights
Financial Highlights • Oil and gas revenues during the period up 27.8% to £3.34 million (2012: £2.61 million) • Loss for the period of £0.72 million (2012: £2.89 million loss) • Impairment charge recognised of £0.56 million (31 July 2012: £3.15 million) • Basic loss per share of 0.54p (31 July 2012:
Slide 7: Corporate/Transaction Highlights
Corporate/Transaction Highlights • Farm-out and royalty reorganisation concluded for the Mairy Permit, France • Farm-out arrangements concluded with Union Jack Oil plc for interests in Licences PEDL201 (5%), PEDL180 (8.33%), PEDL253 (6%) and PEDL241 (10%) • Sale of 12.5% interest in PL090 and PEDL23
Slide 8: Northern England
UK Northern England • The UK is Egdon’s primary business segment with 27 licences, 24 of which are onshore, with 15 operated by Egdon • Two broadly defined focus areas : • Northern England • Southern England PEDL209 Southern England Slide 8 Preliminary Results – year ended 31 July 2013
Slide 9: Production - Northern England
Production - Northern England Keddington Oil Field PEDL005 (remainder) : Egdon 75% operated • Look to maximise value of “greater Keddington area” (including Louth Prospect) • Target production in short term of 40 bopd – wells on natural decline • Lower gas rates have resulted in investment in gas to
Slide 10: Production - Southern England
Production - Southern England Avington PEDL070 : Egdon 26.67% non-operated • Produces from 2 wells in the Middle Jurassic Great Oolite reservoir • Gross production at >70 bopd = 19 bopd net to Egdon • Additional development drilling locations continue to be considered • 3P Net Egdon Reserves of 0.04
Slide 11: Exploration - Northern England
Exploration - Northern England Initial drilling programme: Wressle Prospect PEDL180 : Egdon 25% operated • Undrilled Prospect defined on 2012 proprietary 3D seismic data • Multiple reservoir targets in area with proven hydrocarbon system • On trend with and between nearby oil production and discover
Slide 12: Exploration - Northern England
Exploration - Northern England Second exploration drilling programme 2014 to include: North Kelsey Prospect PEDL241 : Egdon 40% operated • Conventional prospect defined on 3D seismic data with multiple reservoir targets • Farmed-out 10% interest at 2:1 promote to Union Jack Oil Plc Net Egdon Best Es
Slide 13: Exploration - Northern England
Exploration - Northern England Laughton Prospect PEDL209 : Egdon 60% operated • Laughton Prospect on trend with nearby existing production at Corringham (5 km) • Multiple conventional reservoir targets – primary target Silkstone Rock • Net Egdon Best Estimate Prospective Resources of 0.6 mmbo • Plan
Slide 14: Appraisal - Northern England
Appraisal - Northern England “A” Prospect 41/18 & 41/19 : Egdon 100% operated • 26th UK Seaward Licensing Round award in April 2013 • One of the earliest North Sea discoveries, well 41/18-1 (A-339/1-2) drilled by Total in 1966 • Tested gas at 2.5 mmcfg/d following acidisation • Net Egdon Best Estima
Slide 15: UK Shale Gas
UK Shale Gas • Egdon is one of very few publicly quoted companies with an exposure to UK shale gas • Focus on exploration phase of UK shale gas plays and plan to monetise prior to development • Egdon has an existing acreage position which exposes the Company to near-term non-conventional hydrocarbon
Slide 16: BGS Shale Gas Assessment and Egdon Licences
BGS Shale Gas Assessment and Egdon Licences Source: Slide 16 Preliminary Results – year ended 31 July 2013
Slide 17: Exploration - Southern England
Exploration - Southern England Sherwood Sandstone Oil Play PEDL237/PL090 : Egdon 48.75% operated • Triassic reservoir sands, analogous to the Wytch Farm oil field, c. 15km to east • Prospects with combined potential of 27 mmbo Net Egdon Best Estimate Prospective Resources • 3D seismic acquisition co
Slide 18: France
France • Egdon holds interests in three French licences, is awaiting the award of a fourth (Donzacq), and has back-in options on two further permits plus a pending application (Gex Sud) • During the period we relinquished the Nimes Permit • Although the regulatory regime in France is currently chall
Slide 19: Exploration - France
Exploration - France Audignon Prospect St Laurent : Egdon 33.334% operated • A significant un-tested play with successful analogues (e.g. Wessex Basin – Wytch Farm oil field) • Audignon Prospect = sub-salt Triassic Bunter Sandstone gas prospect with multi-TCF potential (Net Egdon Best Estimate Prosp
Slide 20: Egdon Work Programme & Outlook
Egdon Work Programme & Outlook Production • Full-year production guidance of c. 200 boepd from Keddington, Avington, Dukes Wood/Kirklington, Waddock Cross and Ceres • Additional potential drilling at Keddington, Waddock Cross and Kirkleatham could lead to increased production Exploration and Apprais
Slide 21: Egdon Work Programme & Outlook
Egdon Work Programme & Outlook Active Farm-out and Divestment Process • A number of farm-outs and deals concluded during 2013 • Continued marketing and discussions on-going for additional deals • Divestment of non-core assets continues to be pursued UK Shale Gas • UK shale gas and shale oil expected
Slide 22: Summary
Summary • Production guidance for coming financial year of c. 200 boepd (70% from Ceres) • Additional development activity at Keddington, Kirkleatham, Waddock Cross, etc. could lead to further production increase • Active marketing programme to farm-out and monetise certain assets to manage risk and
Slide 23: Appendices
Appendices Slide 23 Preliminary Results – year ended 31 July 2013
Slide 24: Egdon Resources plc - Timeline
Egdon Resources plc - Timeline 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 ex
Slide 25: 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 Explorat
Slide 26: Shareholders
Shareholders Slide 26 Preliminary Results – year ended 31 July 2013
Slide 27: 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