Egdon Resources — FY2019 Earnings Presentation
17 slides from Egdon Resources's earnings presentation, Nov 19, 2019
Slide 1: Results for year-ended 31 July 2019 & Business Review
Egdon Resources plc Results for year-ended 31 July 2019 & Business Review www.egdon-resources.com 1 Preliminary Results & Business Review – 19 November 2019
Slide 2: Egdon at a Glance
Egdon at a Glance • Established oil & gas exploration & production company formed in 1997 • Onshore UK focus • Existing production and cash flow • Nearshore gas appraisal opportunities and significant exploration assets • Significant unconventional resources acreage/gas resource position Production
Slide 3: Strategy
Strategy Status/Progress Ceres production delivered 117% increased group production Appeal heard at public inquiry for Wressle development Field rejuvenation under review for shut-in fields Operated drilling at Biscathorpe-2, Q1 2019 Completed CPR on Resolution Executed Exclusivity Agree
Slide 4: Operational & Corporate Highlights
Operational & Corporate Highlights 117% increase in production to 182 barrels of oil equivalent per day (“boepd”) (2018: 84 boepd) Production restart from Ceres in October 2018 Drilled Springs Road-1 with a hydrocarbon bearing shale sequence logged across 429 metres in the Bowland Shale and si
Slide 5: Financial Results
Financial Results 81% increase in oil and gas revenues to £2.20 million (2018: £1.21 million restated) Loss for the year-ended 31 July 2019 of £1.72 million after write downs, pre-licence costs and impairments of £0.45 million (2018: loss of £1.98 million after write downs, pre-licence costs and
Slide 6: Subsequent Events
Subsequent Events 12 September 2019: Springs Road-1 analysis indicates a three-fold increase in resource density for the Bowland Shale compared to previous independent assessment (ERCE 2014) 2 November 2019: UK government announced a moratorium on high volume hydraulic fracturing for shale gas i
Slide 7: Production
Production 7 1 4 2 3 8 • 117% increase in average daily production to 182 boepd (2018: 84 boepd) • Production from the Ceres(1), Keddington(2) and Fiskerton Airfield(3) fields • Restart of Ceres production in October 2018 following installation of new flow meter 6 • Public Inquiry concluded for Wres
Slide 8: Wressle Update
Wressle Update • Current planning at Wressle site extended to 24 January 2020 following successful appeal • Planning application refused in November 2018 despite recommendation for approval supported by specialist independent third party report for North Lincs Council (“NLC”) • NLC did not present e
Slide 9: Resolution & Endeavour Gas Discoveries
Resolution & Endeavour Gas Discoveries • Exclusivity agreement signed with a large internationally recognised exploration and production company for the farmout of P1929 and P2304. 19 January 2020 target for execution of farmout. • Awaiting OGA licence extensions for P1929 (Resolution) and P2304 (En
Slide 10: Biscathorpe-2 Update
Biscathorpe-2 Update • Biscathorpe-2 (EDR: 35.80%) drilled to a TD of 2133 m in February 2019 • Basal Westphalian Sandstone target encountered high to prognosis and was poorly developed or absent • The “Biscathorpe Play” remains untested with potential elsewhere on this large prospect • Subsequent d
Slide 11: Exploration/Appraisal – Other Projects
Exploration/Appraisal – Other Projects Cloughton Endeavour 1 2 Carboniferous tight gas Permian (Zechstein) gas discovery (KM-8 analogue) discovery c.28 bcf (net Egdon) 18 bcf (net Egdon) 4 3 North Kelsey Kirksmeaton Multi-target Westphalian and Namurain sandstone Namurian tight gas prospect Discover
Slide 12: Springs Road-1 Results
Springs Road-1 Results • Springs Road-1 drilled in Q1 2019, to a depth of 3500m, with 147 m of core collected and analysed along with an extensive suite of wireline log and other data • Egdon’s 14.5% interest fully carried • 429m of hydrocarbon bearing shales encountered within the primary target –
Slide 13: Gainsborough Trough
Gainsborough Trough • Gainsborough Trough = Egdon core area • Egdon = third largest acreage holder with 82,000 net acres • Highly positive preliminary results from Springs Road-1 (EDR 14.5% carried) begins to validate Egdon’s strategic focus on the Gainsborough Trough • Basin characterised by simple
Slide 14: Shale-Gas Moratorium
Shale-Gas Moratorium • The following are extracts from the written ministerial statement on 4 November 2019 advising an effective moratorium on hydraulic fracturing for shale-gas: “The Government continues to recognise the importance of natural gas as a source of secure and affordable energy as we a
Slide 15: Priorities & Outlook
Priorities & Outlook Production guidance for the full financial year 2019-20 is 130-140 boepd, from Ceres, Keddington and Fiskerton Airfield Our key operational focus for the coming period will include: Conditional upon a positive outcome to the recent planning inquiry, developing the Wressle oi
Slide 16: Summary
Summary Exclusivity agreed with “major” for farmout = 3D Seismic planned over “Significant Resolution & Endeavour gas discoveries conventional Oil discovered in Biscathorpe-2 Dinantian Limestone = working petroleum resources exploration/appraisal system portfolio” Possible Biscathorpe-2Z sidet
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