Egdon Resources — FY2009 Earnings Presentation
18 slides from Egdon Resources's earnings presentation, Nov 4, 2009
Slide 1: Preliminary Results for the year ended 31 July 2009 and Business Review
EGDON RESOURCES PLC Preliminary Results for the year ended 31 July 2009 and Business Review 4 November 2009 Slide 1 June 2009 Page 1
Slide 2: Overview of Business
Overview of Business • AIM listed since 2004 (AIM:EDR) • Full cycle E & P business focussed on onshore UK and Europe • Growing reserve and resource base • 2P reserves 1mmboe • Contingent Resources 6 mmboe • Prospective Resources 280 mmboe (in 50 prospects) • Producer status and cash generative • c.
Slide 3: Strategy
Strategy Egdon’s short to medium-term growth strategy: • Focus on proven oil and gas basins in onshore UK and Europe – develop a small number of core areas • Near term focus on production and cash generation from existing discoveries • Position Company to add value via exploration drilling in the me
Slide 4: Preliminary Results – July 2009: Financial and Corporate Highlights
Preliminary Results – 31 July 2009 Financial and Corporate Highlights • Production 23,474 barrels (2008: 23,430 barrels) • Revenue £880,127 (2008: £1,121,624) • Loss before taxation £83,523 (2008: loss of £2,376,262 from continuing operations) • Loss per share 0.12p (2008: 3.52p from continuing oper
Slide 5: Proposed EnCore Acquisition
Proposed EnCore Acquisition • Egdon is in advanced negotiations to acquire a portfolio of UK and French assets from EnCore Oil plc • 10 onshore UK licences, • 2 onshore French licences • 10% interest in Ceres gas field • Excellent Strategic fit with existing portfolio • Ceres provides near-term prod
Slide 6: Terrain Transaction
Terrain Transaction • Agreement to “farm-down” a package of assets to Terrain Energy Limited • Minority interests in East Midlands assets which Egdon was looking to farm-out • 15% PEDL005(Remainder) – Keddington and North Somercotes • 25% PEDL118 – Eakring-Dukes Wood • 25% PEDL203 – Kirklington • 25
Slide 7: Portfolio Overview
Portfolio Overview • Extensive Onshore European portfolio • Over 3000 sq km total acreage • 21 UK licences • 3 French licences (1 pending award) • Material interests: typically >40% • Key partners include: • Star Energy, Celtique Energie, Encore Oil, Nautical Petroleum, Europa Oil and Gas, Sterling
Slide 8: Production
Production Current production of c. 120 bopd • Keddington (Oil) – 75% interest • Net c. 50 bopd increasing to 150 bopd • Sold 10% to Alba for £260,000 in Jan 2009 • Sidetrack location identified to increase production rates • Planning in place – to be drilled in next few months • Avington (Oil) – 36
Slide 9: Development/Appraisal Projects
Development/Appraisal Projects Near term production opportunities/targets • Eakring-Dukes Wood (Oil) – 75% interest • Drilling to be completed in December 2009 • 4 well first stage redevelopment planned • 55-60 bopd increasing to 200 bopd • Waddock Cross (Oil) – 45% interest • 6 month EWT leading to
Slide 10: Development/Appraisal Projects
Development/Appraisal Projects • Nooks Farm (Gas) – 46% carried interest • Plan to re-enter NF-1A gas discovery well • Planning application in preparation for 2010 well • Gas to electricity generation • 1000-2000 mscfg/d (75 - 150 boepd net Egdon) • Broughton (Oil) – 50% interest • Tested Oil discov
Slide 11: Development/Appraisal Projects
Development/Appraisal Projects • Grenade (Oil) – 33.334% interest • Heavy Oil discovery in Cretaceous carbonates • Evaluation indicates commercial potential remains • 2010 decisions on sidetrack or re-drill in 2011 • c. 100 bopd increasing to 300 bopd field production • Mimizan Nord (Oil) – 40% inte
Slide 12: Production and Development Summary
Production and Development Summary Note: Overhead of £0.6-0.7 mm OPEX = £10-£20/bbl Slide 12 June 2009 Page 12
Slide 13: Exploration Projects
Exploration Projects • Exploration is the medium term growth driver drill bit success = value step change • Egdon has developed a significant exploration portfolio • 280 mmboe of prospective resources • > 50 Prospects • 9 high graded prospects • Portfolio includes “Company making” sized prospects •
Slide 14: 2009-2010 Work Programme
2009-2010 Work Programme Egdon 2009 • Drill and complete Dukes Wood-1 • Complete Terrain Energy “farm-down” • Reach final agreement with EnCore 2009-2010 • Drill & Complete sidetracks at Keddington and Kirklington 2010 • Complete EnCore transaction • Field developments at Kirkleatham • Production te
Slide 15: 2009-2010 Work Programme (Egdon + EnCore)
2009-2010 Work Programme Egdon + EnCore 2009 2009 • Drill and complete Dukes Wood-1 • Production start-up Ceres gas field • Complete Terrain Energy “farm-down” 2010 • Reach final agreement with EnCore • Drilling at Markwells Wood & Havant (Weald Basin) 2009-2010 • Field Development at Kirkleatham •
Slide 16: Summary
Summary • Established well balanced onshore portfolio in politically and fiscally stable countries • Approved operator in UK and France • In transition to a full-cycle E&P business with growing production and cash flows in 2010 and beyond • Quality exploration inventory to facilitate material growth
Slide 17: Disclaimer
Disclaimer • This document has been prepared by Egdon Resources plc (the “Company”) for use in presentations held in connection with the promotion of the Company. • The information contained in this document has not been independently verified and no representation or warranty, express or implied, i
Slide 18: Glossary of Terms
Glossary of Terms m = 1,000; mm = 1,000,000; b = 1,000,000,000 “Bbls” or “bbls” – barrels of oil “BOPD” or “bopd” – barrels of oil per day “BOEPD” or “boepd” – barrels of oil equivalent per day (includes gas converted to equivalent oil flows) “mmcf” – million cubic feet of gas, “mmcm” – million cubi