Egdon Resources plc (LON:EDR) the UK Energy Company has provided the following business update ahead of its Annual General Meeting. The AGM will be held at the offices of Norton Rose Fulbright, 3 More London Riverside, London, SE1 2AQ at 11.30 am today.
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 24 months designed to further increase our production and revenue and funded from the material cash flow being generated from our existing production.”
