Egdon Resources — Investor Presentation (February 2020)
26 slides from Egdon Resources's investor presentation, Feb 25, 2020
Slide 1: Egdon Resources plc Business Review
Egdon Resources plc Business Review February 2020 www.egdon-resources.com 1 Corporate Presentation – February 2020
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 cash flow • Nearshore gas appraisal opportunities and significant exploration assets • Significant unconventional resources acreage/gas resource position Production
Slide 3: Positive Start to 2020
Positive Start to 2020 2020 has started well for Egdon with positive catalysts for the business: • H1 2019-20 Production of 178 boepd – in line with guidance • Grant of planning consent on appeal for Wressle oil field development – gross production of 500 bopd anticipated in Q3/Q4 2020 (150 bopd net
Slide 4: Strategy
Strategy Status/Progress ✓ Planning approval for Wressle field development – Q3/4 2020 start-up ✓ H1 2019-20 Production = 178 boepd ✓ Field rejuvenation under review for shut-in fields ✓ Operated drilling at Biscathorpe-2, Q1 2019 ✓ Farmout concluded with Shell in respect of Resolution and Endeavour
Slide 5: Financial Results FY 2019
Financial Results FY 2019 • 81% increase in oil and gas revenues to £2.20 million (2018: £1.21 million restated) • Loss for the year-ended 31 July 2019 of £1.72 million after write downs, pre-licence costs and impairments of £0.45 million (2018: loss of £1.98 million after write downs, pre-licence c
Slide 6: Production
Production 7 • Financial year 2019-20 target production of 130-140 boepd • H1 2020 Production of 178 boepd in line with guidance 1 • 4 Production from the Ceres(1), Keddington(2) and Fiskerton Airfield(3) 2 fields 8 3 • Appeal upheld for Wressle(4) field development – expected first production Q3/Q4
Slide 7: Producing Assets
Producing Assets • Egdon 10% (Spirit Operated) Ceres • Offshore gas Field • Single producing well from Leman Sandstone reservoir • Back-out gas now recovered from Mercury with Neptune ongoing • Egdon 45% (Operator) • Late life producing asset Keddington • Single producing well and 1 shut-in well • P
Slide 8: Wressle Update
Wressle Update • Inspector upheld our appeal following a Public Inquiry held 5-7 November 2019 • Award of costs against North Lincolnshire Council • Wressle – (EDR 30%) Gross 2P Reserves 0.62 mmbo and 2C Resources 1.53 mmbo • Expected initial production rate of c. 500 bopd (150 bopd net Egdon) • For
Slide 9: Shut-in Fields
Shut-in Fields • Egdon 55% (operator) • Shut-in Bridport Sandstone oil field (Dorset) • 2 producing wells Waddock Cross • Significant oil volume in place • Additional development wells being considered. Sidetrack options. • Egdon 26.67% (IGas operated) • Shut-in Great Oolite oil field (Hampshire) •
Slide 10: Resolution & Endeavour Gas Discoveries
Resolution & Endeavour Gas Discoveries • Farm-in agreement signed with Shell UK 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 (Resolutio
Slide 11: Resolution & Endeavour Gas Discoveries
Resolution & Endeavour Gas Discoveries • Marine 3D seismic acquisition to optimise appraisal drilling programme • 438km² 3D seismic planned to detail both Resolution and Endeavour gas discoveries Planned 3D seismic survey Example 3D Seismic Vessel Resolution Prospect Named after HMS Resolution, the
Slide 12: Biscathorpe-2 Update
Biscathorpe-2 Update • Biscathorpe-2 (EDR: 35.80%) drilled to a TD of 2133 m in February 2019 • Basal Westphalian Sandstone target encountered high to prognosis and was poorly developed or absent • The “Biscathorpe Play” remains untested with potential elsewhere on this large prospect • Subsequent d
Slide 13: North Kelsey Prospect
North Kelsey Prospect • 3D defined prospect with multiple reservoir targets – Wressle analogue North Kelsey • Mean Gross Prospective Resources of 6.5 mmbo Prospect • Drilling late 2020 – subject to further farm-out • Geotechnical works commenced January 2020 Top Dinantian Depth Map (m TVDSS) Hibalds
Slide 14: Shale Gas Assets, Strategy
Shale Gas Assets, Strategy • Highly successful in growing the Company’s exposure to unconventional resource exploration opportunities in Northern England - East Midlands focus • Delivered significant growth in acreage and GIIP since 2014 (acreage 186,625 acres, 51 TCF GIIP) • The written ministerial
Slide 15: Gainsborough Trough
Gainsborough Trough • Gainsborough Trough = Egdon core area • Egdon = third largest acreage holder with 82,000 net acres • Highly 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
Slide 16: Springs Road-1 Results
Springs Road-1 Results • Springs Road-1 drilled in Q1 2019, to a depth of 3500m, with 147 m of core collected and analysed along with an extensive suite of wireline log and other data • Egdon’s 14.5% interest fully carried • 429m of hydrocarbon bearing shales encountered within the primary target –
Slide 17: Priorities & Outlook
Priorities & Outlook • Production guidance for the full financial year 2019-20 is 130-140 boepd, from Ceres, Keddington and Fiskerton Airfield Our key operational focus for the coming period will include: • Developing the Wressle oil field for production start-up in 2020 • Completing the farm-in to
Slide 18: Business Development
Business Development • We will continue to review a number of opportunities in the energy space that leverage our expertise • Focus is on opportunities offering the following characteristics • Existing geography • Low geological risk • Low surface risk • Near term predictable cashflows • Running roo
Slide 19: Summary
Summary ✓ Farm-in concluded with Shell for Resolution & Endeavour gas discoveries “Significant ✓ Planning for Wressle oil field granted on appeal conventional resources ✓ Oil discovered in Biscathorpe-2 Dinantian Limestone = working petroleum exploration/appraisal system portfolio” ✓ Possible Biscat
Slide 20: Appendices
Appendices 20 Corporate Presentation – February 2020
Slide 21: Board of Directors
Board of Directors 21 Corporate Presentation – February 2020
Slide 22: Shareholders
Shareholders 22 Corporate Presentation – February 2020
Slide 23: Licences
Licences 23 Corporate Presentation – February 2020
Slide 24: Oil & Gas Reserves/Resources
Oil & Gas Reserves/Resources 24 Corporate Presentation – February 2020
Slide 25: Egdon Resources plc - Timeline
Egdon Resources plc - 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, First licence awarded as operator 2003 : Drilled first non-operated exploration w
Slide 26: 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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