Egdon Resources — H1 2012 Earnings Presentation
29 slides from Egdon Resources's earnings presentation, April 2012
Slide 1: Interim Results for the six months ended 31 January 2012
Egdon Resources plc Interim Results for the six months ended 31 January 2012 & Business Review Interim Results – Six months ended 31 January 2012
Slide 2: Egdon Overview
Egdon Overview • An AIM listed oil and gas exploration and production company focused on onshore UK and mainland Europe • A balanced portfolio of production, development, appraisal and exploration projects positioning the Company for future growth • Extensive European portfolio of 30 Licences in UK
Slide 3: Egdon Resources plc - Vision & Strategy
Egdon Resources plc - Vision & Strategy “The aim of the Group is to create shareholder value by building a profitable and material full cycle exploration, production and energy business with a focus on onshore European operations” Strategy: The Company will look to increase shareholder value by: • G
Slide 4: Financial Highlights
Financial Highlights • Oil Revenues during the period up 67% to £1.55 million (H1 2011: £0.93 million) • Production increased 68% to 29,624 barrels of oil equivalent (“boe”) (H1 2011: 17,671 boe) • Loss for the period of £0.8 million after exceptional write down of £1.0 million in respect of the Kir
Slide 5: Operational Highlights
Operational Highlights • Production during the period up 68% to 29,624 barrels of oil equivalent (H1 2011: 17,671 barrels) from the Keddington and Avington oil fields and the Ceres and Kirkleatham gas fields • 3D seismic programme completed over Broughton and Wressle prospects in PEDL180/182 during
Slide 6: UK Licences & Prospects
UK Licences & Prospects • Strategy of rationalising and improving Egdon’s portfolio • 26 UK licences (12 operated) • All Egdon’s licences in proven producing areas • Egdon will be active across its entire UK portfolio, however there will be 3 main focuses in the next 18 months: 1. Developing oil pro
Slide 7: Developing Oil Prospects & Growing Production in the East Midlands
Developing Oil Prospects & Growing Production in the East Midlands • Production = Keddington, Dukes Wood/Kirklington (this quarter) • Appraisal = Nooks Farm, Broughton • Exploration = multi-well drilling campaign planned starting in mid-2012 targeting 15 mmbo (Net Egdon Best Estimate Prospective Res
Slide 8: Keddington Oil Field
Keddington Oil Field PEDL005 (remainder): Egdon 75% and operator • Maximise value of “greater Keddington area” • Target production in short term of 100-125 bopd (Net Egdon c.75-100 bopd) • Detailed costs received for 1.35 MW gas to electricity generation project – 9 month lead time = new revenue str
Slide 9: Eakring/Dukes Wood/Kirklington
Eakring/Dukes Wood/Kirklington Eakring/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 • Planning received, other consents being sought for May 2012 production start-up at c. 40 b
Slide 10: Broughton/ Wressle / North Kelsey
Broughton/ Wressle / North Kelsey • 49 km2 3D survey completed in February 2012 • Currently undergoing interpretation which will inform bottom hole location and drilling decisions • Area located between Crosby Warren oil field and Brigg oil well Broughton Prospect: PEDL182 – Egdon 33.33% operated •
Slide 11: Biscathorpe Prospect
Biscathorpe Prospect Biscathorpe Prospect: PEDL253 – Egdon 60% operated • Large 3D defined prospect • Oil shows in 1.2 m sand in 1987 BP well • Sands expected to thicken down-dip on structure • Net Egdon Best Estimate Prospective Resources of 8.47 mmbo • High Estimate Prospective Resources of 25 mmb
Slide 12: Burton on the Wolds Prospect
Burton on the Wolds Prospect Burton on the Wolds: PEDL201 – Egdon 37.5% operated • Defined on 2011 proprietary 2D survey • Twin objectives: • Conventional target, productive at nearby Rempstone oil field • Seismic anomaly underlies four-way dip structure = ?reef • Farmed-out 12.5% interest at 2:1 pr
Slide 13: Exploiting Gas in Northern England & Offshore – Kirkleatham Gas Field
Exploiting Gas in Northern England & Offshore – Kirkleatham Gas Field PEDL068: Egdon 40% and operator • Gas sold to Sembcorp at Wilton for use in Gas Turbine (GT2) • First gas in April 2011 • Increasing water production observed – water loading issues in tubing – well shut-in awaiting recompletion/s
Slide 14: Ceres Gas Field
Ceres Gas Field P.1241 (47/9): Egdon 10% - non-operated • Re-commencement of production on 17 September 2011 following major maintenance shut-down by BP – intermittent issues since restart have significantly impacted production – methanol pumps and liquids handling – no significant contribution to p
Slide 15: Westerdale/Ralph Cross & New Offshore Project
Westerdale/Ralph Cross & New Offshore Project Ralph Cross/Westerdale: PEDL068 – Egdon 40% operated • Gas tested in fractured Permian limestone in two wells (Westerdale-1 & Ralph Cross-1) • Net Egdon Best Estimate Prospective Resources of 6.2 bcf • Site lease agreed, public consultation held, plannin
Slide 16: Non-Conventional Hydrocarbon Assets & Strategy
Non-Conventional Hydrocarbon Assets & Strategy • Egdon has an existing acreage position which exposes the Company to near-term non-conventional hydrocarbon drilling (Bowland Shale in Gainsborough Trough) • CPR of Gainsborough Trough acreage being undertaken – significant resource indicated from Egdo
Slide 17: Well Testing Operations & Appraisal 2011-12
Well Testing Operations & Appraisal 2011-12 Waddock Cross: PL090 – Egdon 45% operated • Testing of high water cut Bridport Sandstone oil discovery completed in February 2012 • Commercial development indicated • Per well rates of up to 50 bopd possible • Water disposal well on site – dual completion
Slide 18: Other UK Exploration
Other UK Exploration Holmwood: PEDL143 – Egdon 38.4% non-operated • Between known oil and gas accumulations in Surrey • Net Egdon Best Estimate Prospective Resources of 16.6 bcf • Drilling in 2013 conditional upon success of planning appeal during mid-2012 Sherwood Sandstone Oil Play Dorset: PEDL237
Slide 19: French Licences & Prospects
French Licences & Prospects • Major restructuring of French assets in 2011 with sale of Egdon Resources (New Ventures) Ltd to eCORP for £4.5m • 4 French Licences (3 operated) • Ban on hydraulic fraccing in France Audignon: St Laurent – Egdon 33.423% operated interest • Very large Triassic gas prospe
Slide 20: Audignon Prospect
Audignon Prospect • A significant un-tested play with successful analogues identified (e.g. Wessex Basin – Wytch Farm oil field) • Sub-salt Bunter gas prospect with multi-TCF potential – (Net Egdon 896 bcf) • The structure is a very large (>90 km2) regional structural high on the northern margin of
Slide 21: Pontenx Permit
Pontenx Permit • 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 • Additional seismic reprocessing and reservoir study leading to possible 3D
Slide 22: 2012-13 Planned Work Programme
2012-13 Planned Work Programme Slide 22 Interim Results – Six months ended 31 January 2012
Slide 23: Near-term Work Programme & Outlook
Near-term Work Programme & Outlook • Near-term production of c. 125-150 boepd for coming period from Keddington, Avington, Dukes Wood/Kirklington • Expected increase to 300-350 boepd on resumption of Ceres production (Kirkleatham could increase to 400 boepd) • Three key UK focuses: • Developing oil
Slide 24: Future Developments & Outlook
Future Developments & Outlook “Despite recent near-term production set-backs, the expected growth in UK production and revenues combined with an increased level of drilling activity and a focus on developing our non-conventional business means that the coming period could see Egdon make significant
Slide 25: Appendices
Appendices Slide 25 Interim Results – Six months ended 31 January 2012
Slide 26: Egdon Resources plc - History
Egdon Resources plc - History Summary timeline: 1997 : Egdon formed by Andrew Hindle and Mark Abbott 1998 : First licence awarded in Wessex Basin 1999 : First French licence awarded 2000 : Listed on OFEX market and raised first equity 2000 : First licence awarded as operator 2003 : Drilled first exp
Slide 27: Egdon Board
Egdon Board 5. Jerry Field 6. Andrew Lodge 5. 6. (Exploration Director) Aged 56 (non-executive Director) Jerry graduated in 1977 and has over 30 years’ oil industry Andrew is a highly experienced geoscientist and oil industry experience in small-to-medium sized Exploration and manager. He is Explora
Slide 28: Egdon Shareholders
Egdon Shareholders Egdon Shareholders Total shares in issue 130,969,094 Holding percentage Premier (EnCore Holding) 39,200,000 29.93% Hargreave Hale 13,764,871 10.51% Mark Abbott 7,363,824 5.62% Other Directors 1,444,750 1.10% Heyco 6,861,434 5.24% Andrew Hindle 6,529,232 4.99% Williams de Broe 6,45
Slide 29: 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