Egdon Resources — Shareholder Meeting (December 2015)
19 slides from Egdon Resources's shareholder meeting presentation, Dec 3, 2015
Slide 1: Egdon Resources plc 2015 AGM Presentation
Egdon Resources plc 2015 AGM Presentation “Onshore UK focused E&P business with robust exploration economics & substantial unconventional resources upside” Wressle-1 well site Slide 1 AGM December 2015
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 7 blocks in first tranche of UK 14th Round • Strong opportunity base for grow
Slide 3: Egdon at a Glance – UK Licences & Activity
Egdon at a Glance – UK Licences & Activity Slide 3 AGM December 2015
Slide 4: Highlights
Highlights Production of 63,149 barrels of oil equivalent (2014: 86,870 boe) – 173 boepd (2014: 180 boepd) - Oil and gas revenues £2.07 m (2014: £2.96 m) Loss for the period of £4.47 m (2014: £0.46 m loss) after impairment/write downs/pre- licence costs of £3.62 m (31 July 2014: £0.54 m) Net Current
Slide 5: 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 6: Value Drivers – UK Unconventional Resources – Strategy and Assets
Value Drivers – UK Unconventional Resources – Strategy and Assets Strategy Focus on Early stage Farm-out to Monetise prior to exploration and acquirer derisk development appraisal Egdon Unconventional Resources Assets • Focus on brittle high TOC Carboniferous marine shale plays in Northern England E
Slide 7: Value Drivers – UK Unconventional Resources – 14th Round
Value Drivers – UK Unconventional Resources – 14th Round • Offers in Egdon’s core areas with potential identified by the BGS • Gainsborough Trough – 5 blocks offered to Egdon (15%) UK 14th Round • Widmerpool Basin – 2 blocks offered to Egdon (18.75%) • Additional applications awaiting 2nd Tranche an
Slide 8: Value Drivers – UK Unconventional Resources – Sector Outlook
Value Drivers – UK Unconventional Resources – Sector Outlook Government Support – Infrastructure Act 2015, clarified Planning Guidance, etc. 2016 could see significant activity in the sector subject to planning & appeals in Q1 Cleveland Third Energy: Planning Decision Q1 2016 Fracking and testing o
Slide 9: UK Unconventional Resources – Deal Value $/acre
Value Drivers – UK Unconventional Resources- Deal Value $/acre (non N. America) / Argentina / Deal $423/acre Neuquen Example US Deal High $648/acre Sasol/Talisman / $38,000/acre $938/acre Australia Cooper Note LOG SCALE $/acre Gainsborough / farm-in/optin Deal $2,977/acre Deals $2,067/acre IMPLIES L
Slide 10: Conventional Resources Exploration/Appraisal – Laughton Prospect
Value Drivers - UK Conventional Resources Exploration/Appraisal • Laughton Prospect on trend with nearby existing production Laughton Prospect at IGas’s Corringham Oil Field (5 km to SE) (0.78 mmbo*) • Drilling expected Q1 2016 • COS: 25% Laughton -1 Proposed Location Top Hard Coal– TWT Structure Ma
Slide 11: Conventional Resources Exploration/Appraisal – 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 H1 2016 – Further farm-out p
Slide 12: Conventional Resources Exploration/Appraisal – North Kelsey Prospect
Value Drivers - UK Conventional Resources Exploration/Appraisal • Prospect with multiple reservoir targets – Wressle analogue North Kelsey Prospect • Seeking farm-out partners prior to drilling (4.8 mmbo*) • Drilling expected H1 2016 – Further farm-out planned • COS: 24% Hibalstow-1 Reservoir Analog
Slide 13: Conventional Resources Exploration/Appraisal – “A” Prospect Appraisal
Value Drivers - UK Conventional Resources Exploration/Appraisal • Early North Sea discovery drilled by Total in 1966 “A” Prospect Appraisal • Tested gas at 2.5 mmcfg/d (160 BCF* ) • Submission of Planning Application H1 2016 • Drilling earliest H2 2016 *Net Egdon Best Estimate Prospective Resources
Slide 14: Developments – Wressle Discovery
Value Drivers - UK Developments - Wressle • Testing completed during 2015 • Combined flow rates > 700 boepd from 3 reservoir intervals Wressle Discovery • FDP* being developed for Ashover Grit oil production (25% interest) • Expected initial production of >500 bopd • H2 2016 target for first product
Slide 15: Exploration – Timeline
Value Drivers - UK Exploration - Timeline Conventional oil Conventional gas Source: Egdon and external estimates *Post targeted farm down Bubble size is relative to Gross Best Estimate Resources Slide 15 AGM December 2015
Slide 16: Value Drivers – UK Production
Value Drivers - UK Production 2015-16 Production Guidance = 180 boepd • Gross production of c. 10-12 mmcfg/d Ceres • Repayment of back-out gas expected 2016-18 results in (10%) continuing cash-flow • Gross production of c. 25-30 bopd Keddington • Additional, largely carried, development well Kedding
Slide 17: Outlook
Outlook • Production guidance of c.180 boepd Production and • Additional production wells (e.g. Keddington Q1 15) 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 Troug
Slide 18: A leading UK unconventional resources portfolio
Summary “A leading UK “Material 2016 “In charge of our unconventional conventional own destiny” resources portfolio” resources exploration” Large and growing UK unconventional resources News flow from 2016 Strong balance sheet and acreage portfolio conventional drilling operatorship allow us to prog
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
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