Egdon Resources — FY2021 Earnings Presentation
19 slides from Egdon Resources's earnings presentation, Nov 3, 2021
Slide 1: Preliminary Results for the 12 months ended 31 July 2021 and Business Update
Egdon Resources plc Preliminary Results for the 12 months ended 31 July 2021 and Business Update
Slide 2: Egdon at a Glance
Egdon at a Glance • AIM: EDR • Established oil & gas exploration & production company formed in 1997 • Onshore UK focus • Growing Production and Revenues • Significant onshore exploration and appraisal assets • Nearshore gas appraisal opportunity • Material shale gas position • Identified Energy Tra
Slide 3: Strategy
Strategy Focus on growth in production and Maintain geographical Conventional revenue through conventional UK Focus production, appraisal and focus on the UK Oil & Gas exploration projects A near-term focus on developing low Maintain our significant carbon energy transition projects, portfolio of un
Slide 4: Highlights
Highlights • Wressle: Completion of site reconfiguration, facilities installation and well recompletion, with test production ongoing since late January 2021 and the proppant squeeze operation successfully completed in July 2021 • Production: 90 barrels of oil equivalent per day (“boepd”) (2020: 145
Slide 5: Financials
Financials • Gross oil and gas revenues during the year increased by 13.4% to £1.09 million (2020: £0.96 million). • Loss for the year ended 31 July 2021 of £1.68 million after write-downs, pre-licence costs and impairments of £0.48 million (2020: loss of £4.75 million after write-downs, pre-licence
Slide 6: Subsequent Events
Subsequent Events • Wressle: Coiled tubing operation completed in August 2021, with test production recommencing and flow rates exceeding pre-operational expectations. During September, we reported facility constrained instantaneous flow rates of up 884 barrels of oil per day (“bopd”) along with 480
Slide 7: Production
Production • Production was 90 boepd for the last reporting period • Initial production guidance for reporting period 2021/22 is 240 boepd reflecting increasing Wressle production • Oil and gas prices have recovered very strongly from lows seen in 2020 and are expected to remain high as worldwide ac
Slide 8: Wressle – Exceeding Expectations
Wressle – “Exceeding Expectations” Wressle (EDR 30%) • Ashover Grit Gross 2P Reserves 0.62 mmbls • Significant additional potential in Penistone Flags reservoir of 2C 1.53 mmbls • Site works completed with well placed on test production since 30 January 2021 • Proppant squeeze and subsequent coiled
Slide 9: Keddington – Accessing remaining reserves
Keddington– “Accessing remaining reserves” Keddington (EDR: 45%) • Existing production site with gross Mean Contingent Resources of 567,000 bbls remaining to be produced and further upside • Detailed reservoir engineering work currently being finalised to support the final target selection for a sid
Slide 10: Waddock Cross – Redevelopment to increase production
Waddock Cross – “Redevelopment to increase production” Waddock Cross (EDR: 55%) • Shut-in Bridport Sandstone oil field (Dorset) • Significant Stock Tank Oil Initially in Place (STOIIP) volume of 57 mmbbls • New horizontal well = commercial oil production (500-800 bopd) and c. 1 mmbls per well recove
Slide 11: Exploration / Appraisal
Exploration / Appraisal • Our portfolio of conventional assets provides potential for material growth via exploration and appraisal drilling success • The Company continues to progress those opportunities that offer maximum near-term impact • The initial focus is on Biscathorpe, North Kelsey and Res
Slide 12: Biscathorpe – Appraisal of an Oil Discovery
Biscathorpe – “Appraisal of an Oil Discovery” Biscathorpe (Egdon 35.8%) • Biscathorpe-2 well identified a possible material and commercially viable hydrocarbon resource • A planning application for side-track drilling, testing and long- term production was rejected on 1 November 2021 and subject to
Slide 13: North Kelsey – Exploration to Add Reserves
North Kelsey – “Exploration to Add Reserves” North Kelsey (PEDL241: Egdon 50%) • Prospect mapped from 3D seismic, with multiple reservoir targets = Wressle analogue • Gross Mean Prospective Resources of 6.47 mmbls in multiple reservoir targets • Licence equity equalised during the period with Union
Slide 14: Resolution – Appraisal of Large Offshore Gas Discovery
Resolution – “Appraisal of Large Offshore Gas Discovery” Resolution & Endeavour Gas Discoveries (Egdon 30%) • Farm-in completed with Shell U.K. Limited • Resolution Gas Discovery (P1929) = Early North Sea discovery (Total: 1966) Pensacola Prospect to be • CPR (Schlumberger) assessed gross Mean Conti
Slide 15: Shale Gas – Maintaining a Significant Asset Position
Shale Gas – “Maintaining a Significant Asset Position” • The Group holds a significant unconventional resources portfolio in Northern England, totalling 151,742 net acres (614km2 net) with estimated Mean volumes of undiscovered GIIP of 37.6 TCF (net) • Primary focus is the Gainsborough Trough where
Slide 16: Energy Transition
Energy Transition • The UK is committed by law to reaching “net zero” carbon emissions by 2050 • The Committee on Climate Change identifies the continuing need for oil and gas up to and beyond 2050 • The Energy Transition presents a number of business opportunities • Egdon sees the potential for rep
Slide 17: Geothermal - Heat as a Potential Business
Geothermal - “Heat as a Potential Business” • Geothermal energy projects can utilise Egdon’s core skills, knowledge, and operating experience • Our existing wells and fields have promising potential for geothermal heat generation • Repurposing extends the economic life of wells • Shut-in well at Duk
Slide 18: Outlook
Outlook • Initial production guidance for 2021-22 is 240 boepd, with Wressle being the significant contributor Our key activities and focus for the coming year will be: • Optimise oil and gas production from the Ashover Grit reservoir at Wressle • Progress monetisation of associated gas production f
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