Egdon Resources — H1 2010 Earnings Presentation
21 slides from Egdon Resources's earnings presentation, Apr 29, 2010
Slide 1: Interim Results for the six-months ended 31 January 2010 & Business Review
EGDON RESOURCES PLC Interim Results for the six-months ended 31 January 2010 & Business Review 29 April 2010 Slide 1 29 Page 1 April 2010
Slide 2: Vision & Strategy
Vision & Strategy “Egdon aim to become a profitable and material full cycle exploration, production and energy business with a focus on onshore UK and European operations” Vision: • To build a significant onshore European oil and gas production business • To develop material and profitable positions
Slide 3: Operational Highlights
Operational Highlights • Production during the period up 40% to 11,283 barrels of oil from Keddington, Avington and Kirklington (2009: 8,037 barrels) • Planning consent for Kirkleatham gas field development awarded in August 2009 with commercial agreements signed in February 2010 • Drilled and compl
Slide 4: Financial & Corporate Highlights
Financial & Corporate Highlights • Profit for the period up 12% to £0.15 million (six months to 31 January 2009: £0.13m) • Revenues during the period up 63% to £0.5 million (six months to 31 January 2009: £0.3m) • Earnings per share for the period of 0.20p (six months to 31 January 2009: 0.19p) • Ne
Slide 5: Egdon Overview
Egdon Overview • AIM listed Onshore focused E&P company (AIM:EDR) • Extensive Onshore European portfolio • Over 3000 sq km total acreage • 21 UK licences • 3 French licences (2 pending final award) • Approved operator in UK and France • Shares Currently in issue: 91,475,774 Mkt. Cap. c. £11m • Oil &
Slide 6: EnCore Assets Acquisition - Rationale
EnCore Assets Acquisition - Rationale EnCore Licences • EnCore UK and French assets to be acquired: Egdon Licences • 10 onshore UK licences, • 2 onshore French licences • 10% interest in Ceres gas field • Excellent Strategic fit with existing portfolio (UK & France) • Ceres provides near-term produc
Slide 7: EnCore Assets Acquisition – Commercial Terms
EnCore Assets Acquisition – Commercial Terms • Total Consideration of £5 million payable as follows: • 39,200,000 Egdon shares on completion of UK asset transfer • £100,000 on completion of transfer of EnCore’s French Subsidiary to Egdon • EnCore to hold 29.9% of Egdon’s issued shares on completion
Slide 8: Egdon Board & Corporate Structure
Egdon Board & Corporate Structure Egdon Resources plc Board of Directors ? Phillip Stephens Mark Abbott Walter Roberts Ken Ratcliff Andrew Hindle John Rix Alan Booth non-exec Chairman Managing Director Com Sec. & non-exec non-exec Director non-exec Director non-exec Director non-exec Director** Egdo
Slide 9: Ceres Gas Field
Ceres Gas Field • 10% interest in the Ceres Gas Field is the key asset to be acquired • Operated by Venture (Centrica) • Sub-sea tieback to Mercury and then via Neptune and Cleeton to Dimlington onshore terminal • Production has begun and is in line with operators expectations • Anticipated producti
Slide 10: Production
Production Near-term Expected Production of c. 400 boepd • Ceres (Gas) – 10% interest • Expected net c. 1.2 mmscf/d (c. 200 boepd) from March 2010 • Upside in field, block & future gas price • Keddington (Oil) – 75% interest CERES • 2009 net c. 40 bopd to be increased to c. 150 bopd • Sidetrack dril
Slide 11: Development/Appraisal Projects – UK
Development/Appraisal Projects – UK End 2010 production = 750-800 boepd • Kirkleatham (Gas) – 40% interest • Commercial agreements signed, construction started • Targeting winter 2010 gas sales • 5 mmscf/d (330 boepd net Egdon) • Additional Reserves & Gas storage potential = upside value • Waddock C
Slide 12: 2010 Operations Summary
2010 Operations Summary • Dukes Wood-1 Well (75% interest) Dukes Wood-1 Petrophysical analysis • First modern well on abandoned field • Well completed & Ashover Grit perforated for testing • EWT commenced – producing 20 bopd from AG5 • Additional zones to be perforated & tested Dukes Wood-1 well-sit
Slide 13: 2010 Operations Summary
2010 Operations Summary • Keddington-3 & 3Z Sidetrack Well (75% interest) • Drilled during April 2010 • Keddington-3 encountered 126 m of sandstone and gas bearing Namurian at toe of well so partially cemented back • Further sidetrack Keddington-3z encountered further 109 m of Sandstone • Total 235m
Slide 14: Development/Appraisal Projects - France
Development/Appraisal Projects - France • La Petite Pierriere (“LPP”)(Oil) – 30% interest* • Rhaetian Oil discovery at LVB-1 • Possible 2011 appraisal well up-dip of LVB-1 well • LVB-1 flowed at 85 bopd • Grenade (Oil) – 33.334% interest • Heavy Oil discovery in Cretaceous carbonates • 2010 decision
Slide 15: Exploration Projects – UK & France
Exploration Projects – UK & France • Prospective Resources = c.350 mmboe • Exploration is the medium-term growth driver for Egdon • Balance of oil and gas prospects with diverse risk profile • Plan to drill 3-4 exploration wells per year from 2010 onwards • Portfolio includes “Company making” sized
Slide 16: Non-Conventional Opportunities
Non-Conventional Opportunities • Egdon as a major onshore acreage holder will look to leverage its acreage position by bringing in specialists in the developing area of non-conventional hydrocarbons • Shale Gas & Oil Shale Potential • UK: Widmerpool Gulf, Gainsborough Trough • France: Gex, Navacelle
Slide 17: Net Egdon Production: Work Programme & Expected Production
Work Programme & Expected Production Keddington Sidetrack Nooks Farm re-drill Broughton-2 well Gex/Audignon Well Note: Production rates and work programme LPP Appraisal Well North Kelsey well timing are Egdon estimates and are Ceres First Gas Kirkleatham First Gas Westerdale-2 well Grenade/Mimizan W
Slide 18: Gross Revenue Projections
Gross Revenue Projections • Increasing production will provide material revenue stream over coming years • Reduced operating costs per barrel with higher production • Cash–flow to fund exploration and possible further acquisitions to grow NAV of business • Potential for significant growth in revenue
Slide 19: Future Developments & Outlook
Future Developments & Outlook • Balanced onshore Exploration and Production portfolio in politically and fiscally stable countries • The EnCore acquisition is an excellent strategic fit providing growth in near term cash-flow and increasing the opportunity base of the Company • Trading profitably an
Slide 20: New Office Address
New Office Address Egdon Resources plc The Wheat House 98 High Street Odiham Hampshire RG29 1LP www.egdon-resources.com Slide 20 29 Page 20 April 2010
Slide 21: 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