Egdon Resources — Shareholder Meeting (December 2012)
20 slides from Egdon Resources's shareholder meeting presentation, Dec 6, 2012
Slide 1: Egdon Resources plc Annual General Meeting Presentation
Egdon Resources plc Annual General Meeting Presentation 6th December 2012 Page 1 AGM Presentation – 6 December 2012
Slide 2: Vision & Strategy
Egdon Resources plc - Vision & Strategy “The aim of the Group is to create shareholder value by building a profitable and material exploration business with a focus on onshore European operations ” Strategy: Recognising the key strengths of the company and now inclusive of the prospective unconventi
Slide 3: Egdon Revised Focus Areas
Egdon Revised Focus Areas • 29 Licences (3 awaiting award) • All Egdon’s licences in proven producing basins in the UK and France • Strategy of rationalising and improving Egdon’s portfolio • Revised strategy to focus on fewer higher-potential assets in three core areas: 1. Northern England 2. South
Slide 4: Northern England Core Area
Northern England Core Area • Production = Keddington, Dukes Wood/Kirklington, Ceres, Kirkleatham • Appraisal = Nooks Farm, Westerdale • Exploration = conventional and non- conventional (shale-gas) • Biscathorpe Prospect* • Broughton Prospect* • Burton on the Wolds* • Eakring North • Louth Prospect*
Slide 5: Northern England - Non-Conventional Assets
Northern England- Non-Conventional Assets • Egdon is exposed to the exploration and evaluation phases of UK shale-gas plays • Egdon has an existing acreage position which exposes the Company to near-term non-conventional hydrocarbon drilling (Pendleian Shale = “Bowland Shale” equivalent in Gainsboro
Slide 6: Northern England - Keddington Oil Field
Northern England - Keddington Oil Field PEDL005 (remainder): Egdon 75% and operator • Look to maximise value of “greater Keddington area” • Target production in short term of 70-80 bopd • Sanction of 1.35 MW gas to electricity generation project – first revenues September 2013 • Additional developme
Slide 7: Northern England - Ceres Gas Field
Northern England - Ceres Gas Field P.1241 (47/9): Egdon 10% - non-operated • Infrastructure issues experienced to date – Perenco assume operatorship November 2012 • Production resumed on 11 November 2012 and has continued at rates above expectation without interruption since • Smaller Gas in Place (
Slide 8: Northern England - Kirkleatham Gas Field & Westerdale-2
Northern England– Kirkleatham Gas Field & Westerdale-2 Kirkleatham PEDL068: Egdon 40% and operator • Gas sold to Sembcorp at Wilton for use in Gas Turbine (GT2) • Water loading issues in tubing – well shut-in awaiting recompletion/sidetrack • Options to sidetrack from existing well to up-dip area of
Slide 9: Northern England - Dukes Wood/Kirklington
Northern England - Dukes Wood/Kirklington Dukes Wood/Kirklington: PEDL’s 118 & 203 – Egdon 50% operated • To be jointly developed - Kirklington-3z and Dukes Wood-1 • Dual completion of DW-1 = water disposal hub and production hub for area • September 2012 production start-up at c. 20-25 bopd (net Eg
Slide 10: Northern England - H1 2013 Exploration
Northern England – H1 2013 Exploration Broughton Prospect: PEDL182 – Egdon 33.33% operated • Broughton-B1 flowed oil (40 bopd) • Up-dip potential identified and additional reservoir targets • Net Egdon Best Estimate Prospective Resources : 1.0 mmbo Wressle Prospect: PEDL 180 – Egdon 33.33% operated
Slide 11: Southern England Core Area
Southern England Core Area • Production = Avington, Waddock Cross development in 2013 • Appraisal = Markwells Wood, Langton Herring, North Avington • Exploration = conventional • Sherwood Prospects Wessex Basin • Broadmayne, Casterbridge, Winfrith • Bridport and Frome Limestone prospects Wessex Basi
Slide 12: Southern England - Avington & Waddock Cross
Southern England – Avington & Waddock Cross Avington: PEDL070 – Egdon 26.67% • Produces from 2 wells in the Great Oolite reservoir • Production at c. 65-70 bopd • Additional development drilling locations continue to be considered • 3C net Egdon Reserves of 0.043 mmbo • North Avington prospect = pot
Slide 13: Southern England - Wessex Basin
Southern England – Wessex Basin Sherwood Sandstone Oil Play Dorset: PEDL237/PL090 – Egdon 55% operated interest • Analogous to the Wytch Farm oil field • Prospects with combined potential of 33 mmbo Net Egdon Best Estimate Prospective Resources • Possible 3D seismic acquisition in 2013 • Proposed fa
Slide 14: France Core Area
France Core Area • Conventional exploration focus • Production = Grenade Heavy Oil discovery • Appraisal = Pontenx • Exploration = high potential Triassic gas prospects • Audignon Prospect • Bastennes Gaujacq Prospect (on award of Donzacq) • Mairy Permit = Liassic test well Huiron-1 to commence dril
Slide 15: France - Triassic Gas Prospects
France – Triassic Gas Prospects • A significant un-tested play with successful analogues identified (e.g. Wessex Basin – Wytch Farm oil field) • Audignon Prospect = Identified sub-salt Bunter gas prospect with multi-TCF potential (Net Egdon 896 bcf) • Licence extension to be requested to enable acqu
Slide 16: France - Pontenx Prospect
France - Pontenx Prospect • Parentis Basin – on trend with Lucats & Cabeil oilfields • Numerous tested structural highs with oil shows and tests • Pontenx-3 oil discovery well – 36.5o API oil at maximum flow rates of 218 bopd on test • Planned 3D acquisition in early 2014 to delineate accumulation a
Slide 17: 2013-14 Planned Work Programme
2013-14 Planned Work Programme Egdon operated needs planning 2012 2013 2014 Activity oil/gas Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Drilling Nooks Farm-2 G Mairy-1 O Broughton-2 or Wressle-1 * * O Burton on the Wolds-1 * * O Keddington-5 * O ? Kirkleatham-5 * G ? Biscathorpe-2 * * O Louth-1 * * O North
Slide 18: Near-term Work Programme & Outlook
Near-term Work Programme & Outlook Production • Full-year production guidance of c. 125 boepd from Keddington, Avington, Dukes Wood/Kirklington and Ceres • Sustained production at Ceres could increase daily rates to 225 boepd • Resumption of production at Kirkleatham could increase daily rates to ov
Slide 19: Near-term Work Programme & Outlook
Near-term Work Programme & Outlook UK Shale-Gas • Summary of CPR on PEDL139/140 – Net Egdon GIIP of 1.74 tcf • Gainsborough Deep-1 exploration well planned for 2014 • Strategy to increase exposure to UK shale-gas acreage in near to medium-term – progress being made • Expected resumption of shale-gas
Slide 20: Summary
Summary “Despite recent near-term production set-backs, the existing and expected UK production and revenues, a renewed focus on farm-outs and non-core asset monetisation should enable Egdon to fund its drilling priorities and development of our non-conventional business to drive shareholder value d
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