Egdon Resources — Shareholder Meeting (December 2014)
19 slides from Egdon Resources's shareholder meeting presentation, Dec 12, 2014
Slide 1: Egdon Resources plc AGM Presentation 2014
Egdon Resources plc AGM Presentation 2014 Slide 1 AGM 12th December 2014
Slide 2: Egdon at a Glance
Egdon at a Glance AIM Listed (EDR) Formed 1997 Established oil & gas exploration & production company Onshore UK focus Existing UK production and cash flow Substantial unused tax shield of £31.2m 36 Licences in the UK and France Strong opportunity base for growth Participant in 14th Round Value Driv
Slide 3: Egdon at a Glance
Egdon at a Glance Slide 3 AGM 12th December 2014
Slide 4: Highlights – Year ended July 2014
Highlights – Year ended 31 July 2014 • Attributable production of 86,870 barrels of oil equivalent (2013: 79,947 barrels of oil equivalent) • Oil and gas revenues during the period £2.96 million (2013: £3.34 million) • Loss for the period of £0.46 million (2013: £0.72 million loss) after impairment
Slide 5: 2014 - A Transformational Year
2014 - A Transformational Year “Old” Post Total Deals/Jan Post Alkane transaction Egdon £3m Raise “New” Egdon December 2013 Market Cap. <£10m @ 8p ~£29m @ 20p ~£55-60m immediately after deal Shareprice <10p >20p >27p ~Now £25-30m after oil sector fall Activity levels Low High; Major conventional and
Slide 6: 2014 - Impact of Transactions
2014 - Impact of Transactions • Four significant transactions during the period: • PL161/162 Scottish Power Option Agreement • Total Farm-in to PEDL139/140 • Total Option Agreement for PEDL209 • Acquisition of Alkane shale-gas assets • Built on Egdon’s core skills and experience adding shale-gas ass
Slide 7: Egdon's Strategy
Egdon’s Strategy Egdon’s Strategy: “To create shareholder value by building a material asset base through carried shale gas exploration and significant near term conventional exploration onshore UK ” Three key near-term strategic objectives to drive shareholder value; • UK Shale-Gas - growing the Co
Slide 8: Value Drivers - Egdon's UK Shale-gas Strategy
Value Drivers - Egdon’s UK Shale-gas Strategy • Targeting brittle high TOC Carboniferous marine shale plays that have sourced oil and gas in Northern England • Egdon is one of a few publicly quoted companies with an exposure to UK Shale-gas • Primary focus is in the exploration and appraisal phase •
Slide 9: Egdon's UK Shale-Gas Strategy in Action
Egdon’s UK Shale-Gas Strategy in Action / $938/acre Argentina / / Neuquen Example US Deal Deal $2,977/acre High Deal $423/acre Sasol/Talisman $38,000/acre 2013 Acquisition Australia costs Cooper $159 -234/acre Note LOG SCALE $/acre Gainsborough farmin/optin Deals Acquisition $2,067/acre <$200/acre I
Slide 10: 2015 - UK Shale-gas Sector Outlook
2015 - UK Shale-gas Sector Outlook • 14th Round awards possible by end March 2015 14th Round focus • Egdon participated in strong consortiums • Post-round = Possible asset deals • Post Round = Possible corporate activity • Second half of 2015 could see several unconventional wells fracked * • Cuadri
Slide 11: Value Drivers - UK Exploration – Initial Drilling Programme
Value Drivers - UK Exploration – Initial Drilling Programme Wressle Prospect PEDL180 : Egdon 25% operated • Well completed September 2014 • Testing with work-over rig now planned for January 2015 following receipt of EA permit in early December • Elevated mud gas readings were observed over large pa
Slide 12: UK Exploration - Northern England
UK Exploration - Northern England Kiln Lane PEDL181: Egdon 25% (EOG Operated) PEDL • Net Egdon Best Estimate Prospective Resources of 0.68 183 mmbo • Prospect defined on 77km 2D Seimic Acquisition and 3D Crawberry Hill West Newton -1 -1 reprocessing completed in 2013 • Prospect is a fault-modified 4
Slide 13: UK Exploration - Northern England
UK Exploration - Northern England North Kelsey Prospect PEDL241 : Egdon 40% operated • Conventional prospect defined on 3D seismic data with multiple reservoir targets • Farmed-out 10% interest at 2:1 promote to Union Jack Oil Plc Net Egdon Best Estimate Prospective Resources of 2.4 mmbo • Planning
Slide 14: UK Appraisal - Northern England
UK Appraisal - Northern England “A” Prospect P.1929 (41/18 & 41/19) : Egdon 100% operated • 26th UK Seaward Licensing Round award in April 2013 • One of the earliest North Sea discoveries, well 41/18-1 (A-339/1-2) drilled by Total in 1966 • Tested gas at 2.5 mmcfg/d following acidisation • Net Egdon
Slide 15: Value Drivers - UK Production
Value Drivers - UK Production • Full-year production guidance of c. 195 boepd • Additional potential drilling at Keddington, Waddock Cross and Kirkleatham could lead to increased production Keddington Oil Field PEDL005 (remainder) : Egdon 75% operated • Production of 35-40 bopd – wells on natural de
Slide 16: Outlook – Timeline & Resources
Outlook – Timeline & Resources Conventional oil Conventional gas Source: Egdon and external estimates *Post targeted farm down **Subject to planning appeal Bubble size is relative to Gross resources Slide 16 AGM 12th December 2014
Slide 17: Outlook
Outlook Production • 2014-15 Full-year production guidance of c. 195 boepd • Further potential drilling at Keddington, Waddock Cross and Kirkleatham could increase production • Lower oil prices will reduce revenues although bias is to gas production (60:40 gas:oil) UK Shale-Gas • UK shale-gas (and s
Slide 18: Summary
Summary • UK Shale-gas is a key near-term value driver for the business with Egdon being the second largest listed entity involved in UK shale and partnered with IGas and Total in key play with initial carried well anticipated in 2015, subject to planning • Further significant activity in Shale-gas
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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