Egdon Resources — H1 2013 Earnings Presentation
27 slides from Egdon Resources's earnings presentation, Sep 7, 2013
Slide 1: Interim Results for the six months ended 31 January 2013 & Business Review
Egdon Resources plc Interim Results for the six months ended 31 January 2013 & Business Review Slide 1 Interim Results – Six months ended 31 January 2013
Slide 2: Egdon (AIM:EDR)
Egdon (AIM:EDR) • Formed in 1997 • AIM listed oil and gas exploration and production company focused on onshore UK and France (29 Licences) • Approved Operator in UK and France • A portfolio of production, development, appraisal and exploration projects - conventional and non-conventional plays • Ex
Slide 3: Strategy
Strategy Vision The aim of the Group is to create shareholder value by building a profitable and material exploration and production business with a focus on onshore European operations Strategy The Company advised shareholders in November 2012 of its re-defined strategy focusing on fewer, higher po
Slide 4: Financial Highlights – 6 months to 31 January 2013
Financial Highlights – 6 months to 31 January 2013 • Oil and gas revenues during the period up 6% to £1.64 million (H1 2012: £1.55 million) • Loss for the period of £0.2 million (H1 2012: £0.8 million loss, after write down of £1.0 million in respect of the Kirkleatham asset) • Cash at bank £2.12 mi
Slide 5: Operational Highlights
Operational Highlights • Production of 37,698 barrels of oil equivalent (H1 2012: 29,624 barrels of oil equivalent) (>27%) • Net production of 205 barrels of oil equivalent per day (“boepd”) for period (H1 2012: 161 boepd) • Significant prospective shale gas resources identified in PEDL139/140 • Far
Slide 6: Northern England Core Area
Northern England Core Area • Production = Keddington, Dukes Wood/Kirklington, Ceres, Kirkleatham • Appraisal = Nooks Farm, Westerdale and newly awarded 26th Offshore block covering 41/18 & 41/19 • Exploration = conventional and non- conventional (shale-gas) • Biscathorpe Prospect • Broughton Prospec
Slide 7: Northern England - Production
Northern England - Production Keddington Oil Field PEDL005 (remainder): Egdon 75% and operator • Look to maximise value of “greater Keddington area” • Target production in short term of 60-70 bopd • 1.35 MW gas to electricity generation project sanctioned for Q4 first sales – planning consent receiv
Slide 8: Northern England - Production
Northern England - Production Ceres Gas Field P.1241 (47/9): Egdon 10% - non-operated • On production since November 2012 (Eris remains offline) • Gross Egdon production for period = 0.215 bcf • Back-out deficit being repaid solely by Ceres with net accrued production of 0.15 bcf for period • Planne
Slide 9: Northern England – Appraisal
Northern England– Appraisal Nooks Farm PEDL141: Egdon 46% Non-operated • 1982 gas discovery drilled by Shell • On-going operation to abandon existing wells and drill a production well (Egdon carried) • Planning consent received for production and electricity generation from the site • First revenues
Slide 10: Northern England - Appraisal - 41/18 & 41/19
Northern England- Appraisal - 41/18 & 41/19 “A” Prospect 41/18 & 41/19: Egdon 100% operated • 26th UK Seaward Licensing Round award in April 2013 • One of earliest North Sea discoveries made by Total in 1966 • Well 41/18-1 (A-339/1-2) tested gas from “Hauptdolomit” at 2.5 mmcfg/d following acidisati
Slide 11: Northern England - Exploration
Northern England - Exploration Initial drilling programme expected to commence in H2 2013 at: Wressle Prospect: PEDL 180 – Egdon 33.33% operated • Undrilled Prospect defined on 2012 proprietary 3D seismic survey • Multiple reservoir targets in proven hydrocarbon system • On trend with nearby oil pro
Slide 12: Northern England - Exploration
Northern England - Exploration Second exploration drilling programme 2014 to include: North Kelsey Prospect: PEDL241 - Egdon 40% operated • 3D defined prospect with multiple reservoir targets • Farmed-out 10% interest at 2:1 promote to Union Jack (LOI for further 10%) • Net Egdon Best Estimate Prosp
Slide 13: “Non-Conventional” Assets
“Non-Conventional” Assets • Egdon is exposed to the exploration and evaluation phases of UK shale-gas plays and currently plans to monetise prior to any development • Egdon has an existing acreage position which exposes the Company to near-term non-conventional hydrocarbon exploration in the Pendlei
Slide 14: Southern England Core Area
Southern England Core Area • Production = Avington, Waddock Cross development in 2013 • Appraisal = Langton Herring, North Avington, Markwells Wood • Exploration = conventional • Sherwood Prospects Wessex Basin • Broadmayne, Casterbridge, Winfrith • Bridport and Frome Limestone prospects Wessex Basi
Slide 15: Southern England – Production
Southern England – Production Avington PEDL070: Egdon 26.67% • Produces from 2 wells in the Great Oolite reservoir • Production at >70 bopd • Additional development drilling locations continue to be considered • 3P net Egdon Reserves of 0.043 mmbo • North Avington prospect = potential upside Waddock
Slide 16: Southern England – Exploration
Southern England – Exploration Sherwood Sandstone Oil Play Dorset PEDL237/PL090: Egdon 48.75% operated interest • Analogous to the Wytch Farm oil field • Prospects with combined potential of 29 mmbo Net Egdon Best Estimate Prospective Resources • 3D seismic acquisition 2013, possible drilling 2014 •
Slide 17: France Core Area
France Core Area Conventional exploration focus • Development = Grenade Heavy Oil discovery (= proposed disposal) • Appraisal = Pontenx • Exploration = high potential Triassic gas prospects • Audignon Prospect • Bastennes Gaujacq Prospect (on award of Donzacq) Mairy Permit Egdon 15% interest • Farmo
Slide 18: France - Appraisal
France - Appraisal Pontenx Discovery Pontenx: 50% Egdon Interest • 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
Slide 19: France – Exploration
France – Exploration Audignon Prospect St Laurent: 33.334% Egdon Interest • A significant un-tested play with successful analogues (e.g. Wessex Basin – Wytch Farm oil field) • Audignon Prospect = sub-salt Bunter gas prospect with multi-TCF potential (Net Egdon 896 bcf) • Application for 3 year licen
Slide 20: Work Programme & Outlook
Work Programme & Outlook 3 near-term objectives to drive shareholder value 1. A focus on maximising production and revenues from existing producing assets 2. Adding additional reserves/production through an active exploration/appraisal programme whilst managing risk and costs through an active farm-
Slide 21: Work Programme & Outlook
Work Programme & Outlook Active farm-out and divestment process • A number of farm-outs and deals concluded to date in 2013 • Continued marketing and discussions on-going for additional deals • Divestment of non-core assets to be pursued UK Shale-Gas • UK shale-gas and shale-oil expected to be an in
Slide 22: Work Programme & Outlook
Work Programme & Outlook Egdon operated needs planning 2013 2014 Activity oil/gas Q2 Q3 Q4 Q1 Q2 Q3 Q4 Drilling Nooks Farm-2 G Wressle-1 * * O Burton on the Wolds-1 * * O Keddington-5 * O Kirkleatham-5 * G Biscathorpe-2 * * O Louth-1 * * O North Kelsey-1 * * O Westerdale-2 * G "A" Prospect * * G Gai
Slide 23: Summary
Summary • Significant progress made in delivering on strategy during period • Continued focus on maximising production and revenues from existing assets and expect to exceed guidance of 125 boepd for the full year • Production wells at Nooks Farm, Keddington and Kirkleatham planned, Waddock Cross de
Slide 24: Appendices
Appendices Slide 24 Interim Results – Six months ended 31 January 2013
Slide 25: 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 26: 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 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