Egdon Resources plc (LON:EDR) has reported interim results for the period ended 31st January 2021. Production of 92boepd was within guidance of 90-100boepd leading to revenue of £0.424m. Net cash used in operations was just £1k for the period and net cash at 31st January 2021 was £440k.
The anticipated decline at Ceres was behind the reduced output, however, the ramp up to 150bopd of net production from the Wressle oil field comes at an ideal time to support the company’s earnings outlook while it pursues high impact development opportunities such as Endeavour and Resolution where seismic is expected to be shot in H1 2022.
Milestones for FY 2021
At Wressle the final ramp up is imminent, with the company awaiting the receipt of environmental consents to allow a proppant squeeze and final ramp up. We expect this to add production in the second half of Financial Year 2021, to achieve overall FY 2021 production of 129boepd; implying 165boepd in H2.
Egdon expects to drill the sidetrack well at Biscathorpe in 2021/2022 and submitted a planning application where a decision is pending. This will target the Dinantian Carbonate, where a 68 m oil column was discovered with gross Mean Prospective Resources of 2.55mmbo, with a potential NPV of £55m.
One new area of note is that a memorandum of understanding has been executed with Creative Geothermal Solutions to progress geothermal projects within Egdon’s existing portfolio. This could realise value at the end of asset lives within the company’s portfolio whilst providing exposure to the energy transition.
You can read the full Egdon Resources note provided by VSA Capital here: