Egdon Resources — H1 2016 Earnings Presentation
19 slides from Egdon Resources's earnings presentation, Apr 26, 2016
Slide 1: Egdon Resources plc Interim Results
Egdon Resources plc Interim Results for the six months to 31 January 2016 “Onshore UK focused E&P business with robust exploration economics & substantial unconventional resources upside” Slide 1 Interim Results 2016 Presentation
Slide 2: Egdon at a Glance
Egdon at a Glance • Formed in 1997 • Established oil & gas exploration & production company AIM Listed EDR • Onshore UK focus • Existing UK production and cash flow • 36 licences in the UK and France Assets • To be offered 9 licences in UK 14th Round • Strong opportunity base for growth • High quali
Slide 3: Egdon at a Glance – UK Licences & Activity
Egdon at a Glance – UK Licences & Activity Slide 3 Interim Results 2016 Presentation
Slide 4: Operational and Corporate Highlights – Six months ended January 2016
Operational and Corporate Highlights – Six months ended 31 January 2016 Production up 38% to 37,543 barrels of oil equivalent (H1 2015: 27,232 barrels of oil equivalent) – 204 boepd (H1 2015 : 148 boepd) Egdon to be offered 9 Licences covering 18 blocks in UK 14th Round Net shale acreage position wi
Slide 5: Financial Highlights - Six months ended January 2016
Financial Highlights - Six months ended 31 January 2016 Gross oil and gas revenues up 15% to £1.05 million (H1 2015 : £0.91 million) Loss for the period of £2.00 million (H1 2015: £1.74 million loss) after impairment/write downs of £0.50 million and revaluation of Ceres accrued income (£0.34 million
Slide 6: Post Balance Sheet Events
Post Balance Sheet Events Completed farm-out of PEDL209 conventional prospects (Laughton) Completed drilling of Keddington-5 – tested largely formation water – intervention being evaluated Completed drilling of Laughton-1 - non-commercial shows - plugged to surface and to be restored to agricultural
Slide 7: Egdon's Strategy
Egdon’s Strategy Three key near-term strategic objectives to drive shareholder value: UK Unconventional growing the Company’s exposure to unconventional Resources resource exploration opportunities in Northern England Conventional adding additional reserves/revenues through an active Resources drill
Slide 8: Value Drivers – UK Unconventional Resources - Sector Outlook
Value Drivers – UK Unconventional Resources - Sector Outlook • Strong government support 14th Round focus • Infrastructure Act 2015 removes considerable regulatory uncertainty regarding horizontal drilling and enhances an already strong and workable regulatory regime • Planning guidance to be enforc
Slide 9: Value Drivers – UK Unconventional Resources – 14th Round
Value Drivers – UK Unconventional Resources – 14th Round • Gainsborough Trough – 7 blocks offered to Egdon (15%) • Total and GdF have already farmed into basin UK 14th Round • Cuadrilla award in basin East Midlands • INEOS offered major acreage position to the SW • Widmerpool Basin – 2 blocks offere
Slide 10: Value Drivers – UK Unconventional Resources – 14th Round
Value Drivers – UK Unconventional Resources – 14th Round • Highly sought after area in the 14th Round • Cleveland Basin - 5 blocks offered to Egdon (17.5%-100%) UK 14th Round • Includes 17.5% interest in the Cloughton fallow tight gas field Cleveland Basin • Cuadrilla and INEOS also offered major ac
Slide 11: UK Conventional Developments - Wressle
Value Drivers - UK Conventional Developments - Wressle • Testing completed during 2015 total flow rates > 700 boepd • FDP* being developed – initial Ashover Grit oil production Wressle Discovery • Planning application, EA Permit application, FDP to be submitted during May 2016 (25% interest) • CPR n
Slide 12: North Kelsey Prospect
Value Drivers - UK Conventional Resources Exploration/Appraisal • Prospect with multiple reservoir targets – Wressle analogue North Kelsey Prospect • Drilling expected H2 2016/H1 2017 – Further farm-out planned (4.8 mmbo*) • COS: 24% Hibalstow-1 Reservoir Analogues Top Dinantian TVDSS Structure C.I.
Slide 13: Biscathorpe Appraisal
Value Drivers - UK Conventional Resources Exploration/Appraisal • Oil shows in 1.2m sand in 1987 BP crestal well, sands expected to thicken down-dip on structure Biscathorpe Appraisal • High Estimate Gross Prospective Resources of 41 mmbo (7.4 mmbo* ) • Drilling expected H2 2016/H1 2017 – Further fa
Slide 14: "A" Prospect
Value Drivers - UK Conventional Resources Exploration/Appraisal • Early North Sea discovery drilled by Total in 1966 “A” Prospect • Tested gas at 2.5 mmcfg/d • Offered licence for well location and well path in 14th Round Appraisal • Submission of Planning Application H2 2016 (160 BCF* ) • Drilling
Slide 15: Holmwood Prospect
Value Drivers - UK Conventional Resources Exploration/Appraisal • Planning approvals received on appeal 2015, Operator Europa working to discharge planning conditions Holmwood Prospect • Farmed out to UKOG plc in 2015 = fully carried (1.0 mmbls*) • Post Horse Hill Test EDR changing HC view from gas
Slide 16: Value Drivers - UK Production
Value Drivers - UK Production 2015-16 Production Guidance = 180 boepd • Ceres continues to produce reliably at rates of around 0.8-0.9 Ceres mmcfg/d (135-150 boepd) net to Egdon (10%) • Repayment of back-out gas expected 2016-18 results in continuing cash-flow beyond end of field life • Testing of t
Slide 17: Outlook
Outlook Production and • Production guidance of c.180 boepd Development • Development of Wressle discovery key target for 2016 • Planning application submitted for Springs Road-1 UK Unconventional well (play de-risking well for Gainsborough Trough) Resources • 14th Round success • 2016/17 could see
Slide 18: Summary
Summary “A leading UK “Material 2016/17 “In charge of our unconventional conventional own destiny” resources portfolio” resources exploration” Large and growing UK unconventional resources News flow from 2016/17 Strong balance sheet, acreage portfolio conventional oil operatorship and farm-out explo
Slide 19: 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