Latest news

Egdon Resources plc (AIM:EDR), the UK  focused energy company, is pleased to announce that it will provide a live presentation relating to the company’s Interim Results via the Investor Meet Company platform on 24th Apr 2023 at 10:00am BST.

‍

The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via your Investor Meet Company dashboard up until 9am the day before the meeting or at any time during the live presentation.

‍

Investors can sign up to Investor Meet Company for free and add to meet EGDON RESOURCES PLC via:

‍

https://www.investormeetcompany.com/egdon-resources-plc/register-investor

‍

Investors who already follow EGDON RESOURCES PLC on the Investor Meet Company platform will automatically be invited.

‍

Ahead of the release of the Company’s interim results on 24 April 2023, Egdon Resources plc (AIM:EDR), the UK Energy Company, is pleased to provide a summary trading update in relation to the six months period ending 31 January 2023 (the “Interim Period”).

• Production for the Interim Period was up by 27% to 46,465 barrels of oil equivalent (“boe”) equating to a rate of 253 boe per day (“boepd”), ahead of full-year guidance of 225-245 boepd (H1 2022: 36,714 boe and 200 boepd)

• Unaudited revenue for the Interim Period was up 46% to £3.725 million (H1 2022: £2.551 million)

• As at 31 January 2023 the Company had cash and cash equivalents of £5.524 million (H1 2022: 2.084 million) and net current assets of £7.334 million (H1 2022: 1.165 million)

The Company is continuing to make good progress across its conventional assets and particularly in relation to the near-term operational objectives set out in the 2022 annual report. Production continues to be strong, particularly from Wressle, where Egdon has also progressed with the gas utilisation and monetisation scheme through the installation of the micro-turbines – which will eliminate routine on site diesel generation - and where work is ongoing on the gas to wire project. The Company is progressing towards submitting planning and permitting for further development at Wressle and finalising a programme of drilling in our exploration and development/redevelopment projects for 2023-24.  Egdon is also making good progress on a potentially material renewable energy, green hydrogen and energy storage project.

Commenting on the trading update, Mark Abbott, Managing Director of Egdon, said:

“We continue to generate material revenues from the strong performance of our UK producing assets.  This has led to a strengthening of the balance sheet to support the planned 2023-24 operational programme.

With the business in good health, I look forward to providing shareholders with a more detailed update on the Company’s financial and operational performance on the 24th April.”

‍

Egdon Resources plc (AIM:EDR) the UK Energy Company is pleased to provide an update on operations at the Wressle oil field following the Community Liaison Group (“CLG”) meeting held during the evening of 15 March 2023.

‍

At the meeting the following information was shared with members of the CLG:

Operations

‍

• The Wressle-1 well has continued to flow oil and associated gas at production rates above forecast expectations made ahead of the successful Proppant Squeeze operation, conducted in August 2021

• Total production from Wressle has now exceeded 390,000 barrels of oil

• No water has been produced to date

• Three microturbines were connected during January and February and are now fully operational

• An extended period of fine tuning and testing of the microturbines to determine the impact on production is currently ongoing

• The Environment Agency continues to monitor Egdon’s production operation through regular visits to the Wressle site, the most recent being on 22 February 2023, with no issues identified by the Regulator

• There have been no accidents or spillages since the start of production on the Wressle site in January 2021

• Groundwater and surface water monitoring has continued and latest results up to end December 2022 have been published on Egdon’s newly revamped community website www.egdon-community.com/active-sites

‍

Forward Plan

‍

• During the second half of 2022 Egdon reprocessed the 3D seismic data over the field

• The new data has been interpreted and mapped with the objective of identifying reservoir targets for drilling an additional well or wells at the earliest opportunity, subject to receipt of regulatory approval

• The next new well or wells will likely be drilled from the existing Wressle wellsite

• A new Competent Person’s Report has been commissioned incorporating the new field interpretation and production performance data.  This will consider all oil and gas bearing formations at Wressle.

‍

Community Fund

‍

• The Wressle Community Fund has been operating since early 2022

• In August 2022, the operation of the fund was transferred to Broughton Community and Sports Association (BCSA) which runs the fund to meet the needs of local charities and community groups

• Groups which are outside the remit of the BCSA can still apply directly to Egdon for funding from a smaller pot which is retained to meet these needs

• The Wressle partners are making £100,000 a year available to local groups though these two funding pots

• The first of three windows per year for the Wressle Community Grant closed on 31 December 2022 with 12 applications received amounting to £42,029.60

• The Wressle partners provided additional funding of c. £5,500 to allow all eligible applications to be granted.

‍

In accordance with the Financial Conduct Authority's Disclosure Guidance and Transparency Rules, at 28 February 2023 the total number of Ordinary shares of 1p of the Company in issue is 543,983,031.

‍

The above figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company, under the Disclosure Guidance and Transparency Rules.

‍

The Company does not hold any shares in Treasury.

‍

‍

Egdon Resources plc (AIM:EDR) is pleased to advise that further to the announcement of 20 December 2022 it has completed the acquisition of the entire issued share capital of Aurora Production (UK)Limited (“Aurora Production”) from Aurora Petroleum Limited (the “Vendor”).

‍

Aurora Production is a private company, which holds an 18.75% interest in the Edgon operated licence PL090 which contains the Waddock Cross oil field and an 8.33% interest in the IGas operated licence PEDL070which contains the Avington oil field.

‍

Egdon’s interest in the Waddock Cross oil field (PL090)increases to 73.75% and to 56.04% in the remaining parts of PL090 (excluding the Waddock Cross oil field). Waddock Cross is currently shut-in.  Independent reservoir modelling has shown that a new horizontal well on the field could yield commercial oil production (500-800 bopd). Given the significant mean in-place oil volume of c. 57 million barrels, this asset has been high graded by Egdon for redevelopment.

‍

Egdon has increased its holding in the Avington oil field to 36.33%.  Avington remains shut-in, with work ongoing to redevelop the field during H1 2023.

‍

Egdon estimates that the transaction adds approximately 0.614 million barrels of Best Estimate Contingent and Prospective Resources of oil to its resource inventory.

‍

The consideration for this acquisition is the assumption by Egdon of all ongoing liabilities on these licences, including all abandonment liabilities, from the commercial date of the transaction, which is 30 September2022.

‍

As part of the transaction Egdon has received a cash sum from the Vendor of £0.288 million, less the interim period costs, which reflects the current estimate in relation to the abandonment liabilities. Aurora Production has also granted Net Profit Interests to the Vendor of 10% on each of the licence interests.  In the event that profitable production is established, the Vendor will be reimbursed the £0.288 million.

‍

Aurora Production also has accumulated upstream ringfenced tax losses of ca. £90 million that should be available to offset tax on future profits.

‍

Commenting on the acquisition, Mark Abbott, Managing Director of Egdon said:

‍

“We are pleased to have completed this acquisition, which builds on our existing interests in the Waddock Cross and Avington oil fields. Both assets have active plans in place to rejuvenate oil production.  The acquisition therefore adds potential for near-term incremental production, adds to our resource base and delivers substantial tax losses that may be utilised to offset future taxes.”

‍

Egdon Resources plc (AIM:EDR), the UK Energy Company, is pleased to advise that it has entered into a Farmout Option Agreement (the “Agreement”) with York Energy (UK) Holdings Limited (“York”) relating to onshore Production Licence PL081 (the “Licence”) in North Yorkshire.

‍

The Licence contains the Weaverthorpe Prospect (“Weaverthorpe”). Weaverthorpe is a relatively shallow Bunter Sandstone (Triassic) prospect located immediately up-dip of interpreted gas pay in the Fordon-2 well (drilled by BP in 1974). Egdon’s initial evaluation indicates an estimated Mean prospective gas resource of 58 billion cubic feet.

‍

Under the terms of the Agreement Egdon has a period of six months from 3 February 2023 to elect to farm into the Licence (the “Option”). During the Option period, Egdon will undertake additional technical and operational work to de-risk the opportunity, including reprocessing of the vintage 2D seismic data and integration of this with the existing 3D seismic data which defines the western part of the prospect.

‍

As consideration for the grant of the Option, Egdon will pay 100% of the 2023 licence fees.

‍

Should Egdon exercise the Option, it will earn a 70% interest in the Licence and assume operatorship. As consideration Egdon will pay 100% of the costs associated with the planning, drilling, logging, and either short term testing and completion or plugging and abandonment of a well to test the Weaverthorpe Prospect.

‍

In addition, on exercise of the Option, Egdon will pay York a cash sum of £100,000, less any licence fees that were paid by Egdon for 2023.

‍

York has an agreement with the current operator, Third Energy UK Gas Limited (“Third”), entitling it to be assigned the entire legal and beneficial interest in PL081. Egdon will pay 100% of the costs associated with the transfer of the Licence from Third to York and to Egdon (Such transfer being subject to NSTA approval.)

‍

Commenting on the Agreement Mark Abbott, Managing Director of Egdon, said:

‍

“This farmout option for the Weaverthorpe Prospect represents a significant opportunity for Egdon to increase its exposure to a potentially material gas resource at a time when the UK’s reliance on imported energy has come into sharp focus.  

‍

The deal structure secures the opportunity at low cost whilst we undertake additional technical due diligence through the application of modern seismic processing technology.  

‍

We look forward to updating shareholders on this exciting opportunity over the coming period.”

‍

Egdon Resources plc (AIM: EDR) the UK Energy business is pleased to announce that at the Annual General Meeting held at 11.30 hours today all the resolutions proposed in the notice of the meeting were duly passed.

‍

A business update presentation was made immediately following the AGM and is now available on the Company's website www.egdon-resources.com

‍

The detailed voting results and proxy appointments arein the link below:

Revenue

The Company’s revenue continue to be strong with unaudited revenue for the five-month period from August to December 2022 of £3.08 million (2021: £2.07 million).

‍

Operations

Progress is being made across Egdon’s entire portfolio of assets, highlights include:

‍

Wressle

·        Cumulative oil production of more than 341,100 barrels to 12 January 2023, with no water

·        Current daily production rate of approximately 825-850 barrels of oil per day (“bopd”), however, a daily rate of in excess of 1,000 bopd was achieved in late December 2022, following a four day shut-down

·        Three microturbines have been delivered to site and installation and commissioning is ongoing

·        The microturbines will generate all site electricity and are expected to enable up to a 20% uplift in oil production

·        3D seismic reprocessing completed and new field interpretation being finalised to confirm final target locations for future appraisal and development drilling

·        New Competent Persons Report to be commissioned incorporating the new field interpretation and exceptional production performance

·        Planning and permitting process for Penistone Flags development has commenced

·        Drilling of a Penistone Flags development well is planned for H2 2023, subject to receipt of regulatory and planning consents

·        Progressing gas to wire, and gas export options to generate further revenue streams and to eliminate gas incineration at Wressle

‍

Keddington

·        Reprocessing of existing 3D seismic data currently being finalised to inform final sub-surface location for a side-track well to target around 160,000 barrels of incremental oil production

·        Planning consent and permits in place to enable drilling during H2 2023

Avington

·        All planning conditions have been discharged and the operator is planning to restart production during H1 2023

·        Egdon will increase its interest in the field to 36.33% on completion of the acquisition of Aurora Production Limited

Waddock Cross

·        Egdon will increase its interest in the field to 73.75% on completion of the acquisition of Aurora Production Limited

·        Planned redevelopment of the Waddock Cross oil field

·        The Company is progressing planning and permitting to secure consents for drilling with the target of H1 2024

‍

Biscathorpe

·        A Planning Hearing was held on 11 October 2022 and the Inspector’s decision is awaited

·        Preparations for drilling in H2 2023 would follow from a successful planning appeal

‍

North Kelsey

·        Egdon submitted a planning appeal in August 2022 and we have been informed that the appeal will be held as a Hearing with the detailed timing awaited from the Planning Inspectorate  

‍

Resolution and Endeavour (P1929 and P2304)

·        Shell has completed its withdrawal from the P1929 licence and Egdon is now operator with a 100% interest

·        P2034(Endeavour) was surrendered in November 2022

·        The nearby, analogous Pensacola Prospect has discovered gas and a testing programme is underway

‍

Updated Corporate Presentation

An updated corporate presentation, including updates as detailed above, will be made following the AGM and will be available on the Company's website at www.egdon-resources.com

‍

Mark Abbott, Managing Director of Egdon, commented:

‍

“Egdon continues to generate strong revenues from its UK producing assets with Wressle being the standout asset, performing ahead of expectations. We anticipate a further uplift in production at Wressle in the near future once the microturbines are fully commissioned and operational. We are actively progressing planning and permitting for the development of the Penistone Flags reservoir, which along with the associated gas to grid project will result in a further material uplift in production and revenues.

‍

Elsewhere, we are progressing our plans for a drilling campaign during the next 12 to 24months designed to further increase our production and revenue and funded from the material cash flow being generated from our existing production.”

‍