Egdon Resources — FY2020 Earnings Presentation
21 slides from Egdon Resources's earnings presentation, Jan 6, 2021
Slide 1: Preliminary Results for year-ended 31 July 2020 & Business Update
Egdon Resources plc Preliminary Results for year-ended 31 July 2020 & Business Update January 2021 www.egdon-resources.com 1 Preliminary Results Presentation for year-ended 31 July 2020 – January 2021
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 • Energy Tran
Slide 3: Coronavirus (COVID-19)
Coronavirus (COVID-19) • During this pandemic, the primary concern and focus for the Company has been the health and safety of our employees, contractors and other stakeholders • The Egdon office has remained closed since March 2020 with all staff working from home using well tried systems • To date
Slide 4: Operational and Corporate Highlights Period Ending 31 July 2020
Operational and Corporate Highlights Period Ending 31 July 2020 Despite the challenging headwinds of COVID-19 and the impact on global oil price, the Company has continued to make progress in a number of key strategic areas and continues to adapt the business: • FY 2019-20 Production of 145 boepd –
Slide 5: Subsequent Events
Subsequent Events • On 25 August 2020 completion of the Resolution and Endeavour farmouts to Shell • On 7 September 2020 planning consent extended to 31 December 2021 for the drilling of North Kelsey-1 (PEDL241) • North Kelsey-1 pre-farm out alignment of licence interests with UJO announced during O
Slide 6: Preliminary Financial Results Period Ending 31 July 2020
Preliminary Financial Results Period Ending 31 July 2020 • Oil and gas revenues decreased by 56% to £0.96 million (2019: £2.20 million) due to significantly reduced gas and oil prices during the period • Loss for the year-ended 31 July 2020 of £4.75 million after write downs, pre-licence costs and i
Slide 7: Strategy
Strategy Status/Progress ✓ Planning approval for Wressle field development – Jan 2021 start-up ✓ 2019-20 Production = 145 boepd ✓ Field rejuvenation review underway for shut-in fields at Waddock Cross & Kirkleatham ✓ Cost reductions implemented ✓ Biscathorpe project upgraded – planning for side-trac
Slide 8: Production
Production 7 1 • FY 2020 Production of 145 boepd ahead of guidance 4 • 2 Production from the Ceres(1), Keddington(2) and Fiskerton Airfield(3) 8 3 fields • Wressle(4) field development progressed during 2020 – expected first oil January 2021 • Shut-in fields (Waddock Cross(5), Avington(6), Kirkleath
Slide 9: Producing Assets
Producing Assets 7 1 4 • Egdon 10% (Spirit operated) 2 3 • Offshore gas field 8 Ceres • Single producing well from Leman Sandstone reservoir (1) • Production c. 60 - 70 boped • End of life 2021-2023 depending on gas price 6 • Egdon 45% (Operator) • Late life producing asset 5 Keddington • Single pro
Slide 10: Wressle Field Development
Wressle Field Development • Planning Inspector upheld the appeal following a Public Inquiry held 5-7 November 2019 • Cost recovery from North Lincolnshire Council – c.£403K gross • Wressle – (EDR 30%) Gross 2P Reserves 0.62 mmbo and 2C Resources 1.53 mmbo • Expected initial production rate of c. 500
Slide 11: Wressle – Penistone Flags
Wressle – Penistone Flags • Substantial upside exists at Wressle in the Penistone Flags reservoir - gross 2C Contingent Resources of 1.53 million stock tank barrels of oil and 2.0 billion standard cubic feet of gas (ERCE 2014) • On test the Penistone Flags interval achieved average rates of 131 bopd
Slide 12: Shut-in Fields
Shut-in Fields 7 1 • Egdon 55% (Operator) 4 • 2 Shut-in Bridport Sandstone oil field (Dorset) 8 3 Waddock Cross • 2 producing wells (5) • Significant Stock Tank Oil Initially in Place (STOIIP) volume in place c.70mmbls) • Additional development wells under consideration – 500-800 bopd • Side-track o
Slide 13: Resolution & Endeavour Gas Discoveries
Resolution & Endeavour Gas Discoveries • Farm-in agreement completed 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 (Res
Slide 14: Biscathorpe Oil Discovery
Biscathorpe Oil Discovery • Biscathorpe-2 (EDR: 35.8%) drilled to a TD of 2133 m in February 2019 and suspended for potential side-track • Accessible target areas have been identified, where evidence for a thickened Westphalian sandstone reservoir interval is apparent • The gross Mean Prospective Re
Slide 15: North Kelsey Prospect
North Kelsey Prospect • 3D defined prospect with multiple reservoir targets – Wressle analogue • Mean Gross Prospective Resources of 6.5 mmbo North Kelsey • Drilling deferred to 2021 due to COVID-19 restrictions Prospect • EA Permit received & Planning consent extended to end 2021 • Alignment of int
Slide 16: Shale Gas Assets
Shale Gas Assets • Egdon has been very 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 164,280 acres, 47.6 TCF G
Slide 17: Gainsborough Trough
Gainsborough Trough • Gainsborough Trough = Egdon core area. Egdon = third largest acreage holder with 71,360 net acres • 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 structu
Slide 18: Energy Transition Opportunities
Energy Transition Opportunities • The UK is committed by law to reaching “net zero” carbon emissions by 2050 • The Committee on Climate Change identifies the continuing need for oil and gas up to and beyond 2050, • production of hydrogen, • Carbon Capture Utilisation and Storage (“CCUS”) • The energ
Slide 19: Priorities & Outlook
Priorities & Outlook • Production guidance for the full financial year 2020-21 is 140-150 boepd, from Wressle, Ceres, Keddington and Fiskerton Airfield Our key operational focus for the coming period will be: • Managing our operations to ensure the continued safety of our employees, contractors and
Slide 20: Summary
Summary “Significant ✓ Wressle oil field under development – Jan 21 start-up conventional ✓ Biscathorpe-2 side-track 2021* resources exploration/appraisal ✓ North Kelsey-1 2021 portfolio” ✓ Farm-in completed with Shell for Resolution & Endeavour gas discoveries ✓ Onshore start-up projects demonstrat
Slide 21: 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