Egdon Resources — H1 2009 Earnings Presentation
21 slides from Egdon Resources's earnings presentation, Apr 27, 2009
Slide 1: Interim results & Business Review for the six-months ended 31 January 2009
Egdon Resources plc EGDON RESOURCES PLC Interim results & Business Review for the six-months ended 31 January 2009 27 April 2009 Slide 1 27 April 2009 Page 1
Slide 2: Summary of Business
Egdon Resources plc Summary of Business • Onshore focused E&P business (AIM:EDR) • 26 licences in the UK and France • Current Production c.125 bopd with target of 500 boepd by end 2009 • Reserves = 1 mmboe, Contingent Resources = 9 mmboe, Prospective Resources = 150 mmboe Approved operator in UK and
Slide 3: Licence Holdings
Egdon Resources plc Licence Holdings Slide 3 27 April 2009 Page 3
Slide 4: Financial Results & Highlights
Egdon Resources plc Interim Period six months to 31 January 2009 – Financial Results & Highlights Financial & Corporate Highlights • Maiden Profit for period from continuing operations of £133,000 (2008: loss £1,494,000) • Revenues during the period of £305,000 (2008: £ 758,000) • Production during
Slide 5: Operational Highlights
Egdon Resources plc Interim Period six months to 31 January 2009 – Operational Highlights Operational Highlights • Production during the period of 8,037 barrels (2008: 18,387 barrels) from Keddington and Avington • Avington production restarted on 23 January 2009 – increased production since this ti
Slide 6: Strategy
Egdon Resources plc Egdon Resources Strategy “Egdon’s aim is to become a profitable and material full cycle exploration and production business with a focus on onshore UK and European operations” Strategy • The Company’s strategy is to remain geographically focused, with activity restricted to prove
Slide 7: Progress during period: Production and revenue growth
Egdon Resources plc Progress during period Production and revenue growth • Continued Production from Keddington • Sale of 10% interest in Keddington to Alba Resources (Nautical Petroleum) for £260,000 • Sets a market value for Egdon’s 90% interest in the field • Realises cash for investment in Keddi
Slide 8: Progress during period: Reserve growth & New Projects
Egdon Resources plc Progress during period Add value through reserve growth & New Projects • Highly successful 13th Onshore UK Licensing round • 6 new licences, addition of 50 mmboe best estimate prospective resources net to Egdon • Includes Kirklington oil field, Broughton and Brigg oil discoveries
Slide 9: Current Challenges & Opportunities
Egdon Resources plc Current Challenges & Opportunities Challenges • Current lower oil price environment: Onshore projects are economic at low oil price due to lower CAPEX and ability to reduce OPEX. Reduced oil price will reduce revenues from production = less capital for investment in growth • Poor
Slide 10: 2009 Work Programme
Egdon Resources plc 2009 Work Programme 2009 Work Programme & Newsflow: • Restore Kirklington to production and drill sidetrack to increase production • Drill and test Dukes Wood-1 well as first stage in Field re-development • Drill sidetrack at Keddington to increase production • Develop electricit
Slide 11: UK - Optimise Keddington Oil Production
Egdon Resources plc UK - Optimise Keddington Oil Production Keddington Oil Field (PEDL005 (Remainder) – 90% Operated Interest) • 10% interest sold to Alba Resources Ltd for £260K (original 100% acquisition price was £250K) • Current field production of c.60 bopd (back to 2003 levels) • Total field p
Slide 12: UK - Avington Oil Field Development
Egdon Resources plc UK - Avington Oil Field Development Avington Oil Discovery (PEDL070 – Egdon 36.67% interest) • 6 month EWT finished in February 2008 = Production of 12,240 bbls net to Egdon • Delays in production start due to planning and regulatory delays • AV3z on production 23 January 2009 at
Slide 13: UK – Kirkleatham Gas Field Development
Egdon Resources plc UK – Kirkleatham Gas Field Development Kirkleatham Gas Discovery (PEDL068 – 20% Operated Interest) • Gas discovery in Cadeby Formation limestone made in Kirkleatham-4 exploration well (January 2006), flowed at 5 MMscf/d from a 6m perforated interval at top of reservoir • GIIP in
Slide 14: UK - Eakring-Dukes Wood Oil Field Rejuvenation
Egdon Resources plc UK - Eakring-Dukes Wood Oil Field Rejuvenation Eakring-Dukes Wood Oil Field (PEDL118 – 100% Operated Interest) • Purchased from Stag Energy Limited during October 2007 (£55,000 plus 5% royalty) • Eakring-Dukes Wood produced 6.5 MMstb from 1940 to 1966. STOIIP of 25.6 MMstb (25% r
Slide 15: UK – Kirklington Oil Field Development
Egdon Resources plc UK – Kirklington Oil Field Development Kirklington Oil Field (PEDL203– 100% operated interest) • Egdon have acquired existing Kirklington-2 well and site in 13th Round licence PEDL203 • Plan to restore production (c. 20 bopd) and to use K-2 as a donor well for sidetrack in 2009/1
Slide 16: UK - Exploration
Egdon Resources plc UK - Exploration Active Exploration Programme onshore UK from 2010 onwards Egdon has 150 mmboe of prospective resources = significant exploration upside • Wessex Basin: • Sherwood Sandstone test – Winfrith (4 MMstb), Casterbridge/Broadmayne (combined 55 MMstb) • Bridport Prospect
Slide 17: FRANCE - Audignon Ridge Prospect
Egdon Resources plc FRANCE - Audignon Ridge Prospect Audignon Ridge Prospect (St Laurent – 33.34% Operated Interest) • St Laurent licence extended to 2013 • Multi-TCF (up to 3.8 TCF gross) GIIP sub-salt gas lead on margins of major gas producing basin containing the Giant Lacq gas field • France has
Slide 18: FRANCE - New Licences
Egdon Resources plc FRANCE - New Licences French Exploration Opportunities • Pontenx (Egdon 40% operator) • Parentis Basin of SW France • Proven Cretaceous and Jurassic oil plays • Mimizan Nord abandoned heavy oil field • Reef carbonate oil discoveries and prospects • Gex (Egdon 40% operator) • Jura
Slide 19: Summary
Egdon Resources plc Egdon Resources - Summary • Sufficient cash and revenues to undertake defined 2009 programme • Clear and consistent strategy • Continuing Production and revenue growth • Current Production from Keddington and Avington • Planned production from Kirklington, Kirkleatham, Eakring-Du
Slide 20: Disclaimer for Presentation
Egdon Resources plc Disclaimer for Presentation • 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 representati
Slide 21: Glossary of Terms
Egdon Resources plc 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, “