Egdon Resources — Shareholder Meeting (December 2018)
22 slides from Egdon Resources's shareholder meeting presentation, Dec 6, 2018
Slide 1: Egdon Resources plc Annual General Meeting Business Review
Egdon Resources plc Annual General Meeting Business Review Slide 1 AGM Presentation 6 December 2018
Slide 2: Egdon at a Glance – Summary
Egdon at a Glance – Summary Operated Best Estimate 2P Reserves Production ** UK Licences Licences Resources 44 28 699 0.54 84 mmboe mmboe boepd Unconventional Prospective Net Cash* Shares in Issue GIIP Unconventional 51 187,000 2.8 c.260 TCF acres £ million million mmboe = millions of barrels of oil
Slide 3: Egdon at a Glance – Summary
Egdon at a Glance – Summary Slide 3 AGM Presentation 6 December 2018
Slide 4: Strategy Progress
Strategy Progress • Well placed to benefit from the increased operational activity across the UK unconventional resources sector • A period in which Egdon has achieved strategic objectives of: • Balancing portfolio • Mitigating risk exposure • Maintaining cost discipline • Set to deliver a significa
Slide 5: Strategy Progress
Strategy Progress Three key near-term strategic objectives to Status/Progress deliver shareholder value UK growing the Company’s • One of few listed UK investment opportunities with Unconventional exposure to unconventional exposure to shale gas Resources resource exploration • Achieved significan
Slide 6: Unconventional Resources – Strategy, Assets & Performance
Unconventional Resources – Strategy, Assets & Performance Strategy: grow the Company’s exposure to unconventional resource exploration opportunities in Northern England • Delivered significant growth in acreage and GIIP since 2014 (acreage 186,625 acres, 51 TCF GIIP) • 2019 = drilling of Springs Roa
Slide 7: Unconventional Resources – East Midlands
Unconventional Resources – East Midlands • 142,796 net acres under licence in the East Midlands • Gainsborough Trough = Egdon core area = Springs Road drilling H1 2019 (EDR 14.5% Carried) IGAS Springs Road Well H1 2019 (EDR 14.5% Carried) Humber Basin IGAS Tinker Lane Well 2018 Spud INEOS 3D Seismic
Slide 8: Unconventional Resources – Gainsborough Trough - Geology
Unconventional Resources – Gainsborough Trough - Geology Geological Cross-Section across the Gainsborough Trough Source: IGas Investor Presentation September 2018 Slide 8 AGM Presentation 6 December 2018
Slide 9: Unconventional Resources – Springs Road – Play - Opening Well
Unconventional Resources – Springs Road – Play - Opening Well Springs Road-1 • Site construction completed (Egdon 14.5%) • Vertical exploration well (approx. 3,500m) expected drilling H1 2019 • Egdon’s costs carried by INEOS Shale Springs Road well site Springs Road well site (Courtesy IGas) Source
Slide 10: Unconventional Resources – Industry Activity
Unconventional Resources – Industry Activity Cuadrilla • Hydraulic fracturing and testing of two horizontal wells has commenced with results to be reported in Q1 2019 • Reported “excellent rock quality” and “high natural gas quantities” in two vertical wells with horizontal laterals completed at Pre
Slide 11: Conventional Exploration / Appraisal
Conventional Exploration / Appraisal Strategy: adding additional reserves/revenues through an active drilling programme whilst managing risk and financial exposure through farm-out • Significant UK conventional prospect portfolio • Successful farm-outs at Biscathorpe • More active operational phase
Slide 12: Conventional Resources - Biscathorpe Prospect
Conventional Resources - Biscathorpe Prospect Biscathorpe Prospect • Oil shows in 1.2m sand in 1987 BP crestal well Appraisal • Reservoir expected to thicken down-dip on structure similar to nearby Reepham (5.0 mmbo*) (see below left) • High (P10) Estimate Gross Prospective Resources of 35mmbo • Sit
Slide 13: Conventional Resources - Biscathorpe Prospect Geology
Conventional Resources - Biscathorpe Prospect Geology Biscathorpe Prospect • Key aims to establish extent of reservoir thickening down-dip of Appraisal Biscathorpe-1 beyond a small local fault as shown in the cartoon below (5.0 mmbo*) • Logging and subsequent testing would help establish the quality
Slide 14: Conventional Resources - North Kelsey Prospect
Conventional Resources - North Kelsey Prospect North Kelsey Prospect • Prospect with multiple reservoir targets – Wressle analogue (5.2 mmbo*) • Mean Gross Prospective Resources of 6.5 mmbo • Drilling expected 2019 – subject to further farm-out Hibaldstow-1 Reservoir Analogue for North Kelsey Top Di
Slide 15: Conventional Resources – Resolution & Endeavour
Conventional Resources – Resolution & Endeavour Resolution Gas Discovery • Early North Sea discovery (Total: 1966) (P1929*) • Capable of 25-50 mmcfg/d using modern completion techniques Endeavour Gas Discovery • Acquired interest at minimal firm consideration (c. £15K) (P2304*) • Endeavour gas disco
Slide 16: Conventional Resources – Resolution & Endeavour
Conventional Resources – Resolution & Endeavour • Marine 3D seismic acquisition to optimise appraisal drilling programme • 438km² 3D seismic planned in H1 2019* to detail both Resolution and Endeavour gas discoveries • Finalising an updated reservoir model and Competent Person’s Report (CPR) by end
Slide 17: Production
Production Strategy: Continue to focus on maximising production rates, revenues and profitability from existing producing assets through targeted investment 2017-18 production: 84 boepd Production Guidance 2018-19: 150-180 boepd* Ceres • New flow meter installed and production re-commenced during Oc
Slide 18: Production – Ceres Gas Field
Production – Ceres Gas Field Ceres gas field • Ceres flow meter successfully replaced allowing production from Ceres well (Egdon 10% (shut-in since September 2016) non-operated) • Additional back-out production from the Mercury / Neptune gas fields • November sales averaged 1.16 mmcfd (193 boepd) an
Slide 19: Production - Wressle Development
Production - Wressle Development Wressle Development • Gross 2P Reserves 0.62 mmbo and 2C Resources 1.53 mmbo (Egdon 30% • Production rate of c. 500 bopd (150 bopd Net Egdon) operated) • Planning Appeals dismissed January 2018 • Application to extend existing planning consent refused (August) and ap
Slide 20: Outlook & Planned Activity
Outlook & Planned Activity Production • Guidance of c.150-180 boepd H1 2019 • Significant increase in Ceres production • New Wressle planning appeal Unconventional • Drilling of play-opening Springs Road-1 well Resources • Increased activity by Cuadrilla, IGas and INEOS Shale Conventional • Biscatho
Slide 21: Summary
Summary “A leading UK “shale” “Active conventional “Financial Discipline” portfolio with near-term exploration programme” catalysts” One of two listed UK Drilling programme targeting Onshore project = robust companies with material shale 10.2mmbo* net to Egdon economics acreage Biscathorpe-2 to spud
Slide 22: 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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