Egdon Resources — FY2015 Earnings Presentation
25 slides from Egdon Resources's earnings presentation, Nov 3, 2015
Slide 1: Audited Results for the year ended 31 July 2015 & Business Review
Egdon Resources plc Audited Results for the year ended 31 July 2015 & Business Review “Onshore UK focused E&P business with robust exploration economics & substantial unconventional resources upside” Wressle-1 well site Slide 1 Preliminary Results – 3rd November 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 Preliminary Results – 3rd November 2015
Slide 4: Operational and Corporate Highlights – Year ended 31 July 2015
Operational and Corporate Highlights – Year ended 31 July 2015 Production of 63,149 barrels of oil equivalent (2014: 86,870 barrels of oil equivalent) – 173 boepd (2014: 180 boepd) Successful drilling & testing of the Wressle-1 oil and gas discovery in Lincolnshire, where FDP is in preparation Stron
Slide 5: Financial Highlights - Year Ended 31 July 2015
Financial Highlights - Year Ended 31 July 2015 Oil and gas revenues £2.07 million (2014: £2.96 million) Loss for the period of £4.47 million (2014: £0.46 million loss) after impairment/write downs/pre-licence costs of £3.62 million (31 July 2014: £0.54 million) Basic loss per share of 2.02p (31 July
Slide 6: Post Balance Sheet Events
Post Balance Sheet Events Egdon to be offered seven blocks in UK 14th Round first tranche announcement Positive planning appeal outcome and further consents received for Holmwood-1 exploration well in PEDL143 Submission of Springs Road-1 exploration well planning application by IGas Slide 6 Prelimin
Slide 7: 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 8: 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 9: 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 10: 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 Cleveland Third Energy: Planning Decision Q4 2015 Fracking and testing of Kir
Slide 11: Value Drivers - UK Conventional Resources Exploration/Appraisal
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 Q4 2015 • COS: 25% • Oil shows in 1.2m sand in 1987 BP crestal well, sands expec
Slide 12: Value Drivers - UK Developments - Wressle
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 13: Value Drivers - UK 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 13 Preliminary Results – 3rd November 2015
Slide 14: 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 15: Outlook
Outlook • Production guidance of c.180 boepd Production and • Additional production wells planned (e.g. Keddington) 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 Tro
Slide 16: Summary: 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 2015 /16 Strong balance sheet and acreage portfolio conventional drilling operatorship allow us to
Slide 17: 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
Slide 18: Appendices
Egdon Resources plc Audited Results for the year ended 31 July 2015 & Business Review APPENDICES Slide 18 Preliminary Results – 3rd November 2015
Slide 19: Share Capital and Shareholders
Share Capital and Shareholders The issued share capital of Egdon Resources plc consists of 221,345,811 ordinary shares of 1 pence each with voting rights Shareholdings in the Company of >3% as at 2nd November 2015 are: Slide 19 Preliminary Results – 3rd November 2015
Slide 20: Egdon Board
Egdon Board Slide 20 Preliminary Results – 3rd November 2015
Slide 21: Advisors
Advisors Nominated Advisor and Broker: Cantor Fitzgerald Europe Limited Joint Broker: VSA Capital Limited Corporate Advisors: Evercore Financial Public Relations: Buchanan Accountants and Tax Advisors: BDO LLP Reporting Accountants: Nexia Smith & Williamson Solicitors: Norton Rose Fullbright Registr
Slide 22: 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 23: Consolidated Statement of Comprehensive Income - Year Ended 31 July 2015
Consolidated Statement of Comprehensive Income - Year Ended 31 July 2015 Notes refer to notes in the Annual Report and Financial Statements for the year ended 31 July 2015 Slide 23 Preliminary Results – 3rd November 2015
Slide 24: Consolidated Statement of Financial Position - Year Ended 31 July 2015
Consolidated Statement of Financial Position - Year Ended 31 July 2015 Notes refer to notes in the Annual Report and Financial Statements for the year ended 31 July 2015 Slide 24 Preliminary Results – 3rd November 2015
Slide 25: Value Drivers – 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