REG - Egdon Resources PLC - AGM Business Update

Egdon ResourcesAnnouncement

17/01/2023 07:00

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RNS Number : 9005M  Egdon Resources PLC  17 January 2023

17 January 2023

EGDON RESOURCES PLC

("Egdon" or "the Company")

AGM Business Update

Egdon Resources plc (AIM:EDR) the UK Energy Company is pleased to provide the
following business update ahead of its Annual General Meeting ("AGM"). 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 (http://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."

For further information please contact:

Egdon Resources plc

Mark Abbott, Martin
Durham
01256 702 292

 

Buchanan

Ben Romney, Jon
Krinks
020 7466 5000

 

Nominated Adviser & Joint Broker - WH Ireland
Limited

Chris Hardie, Antonio Bossi, Megan Liddell
                         020 7220 1666

 

Joint Broker & Financial Advisors - VSA Capital Limited

Andrew Monk, Andrew
Raca
020 3005 5000

 

 

About Egdon

 

Egdon Resources plc (LSE: EDR) is an established UK-based energy company
focused on onshore exploration and production in the UK.

Egdon holds interests in 35 licences in the UK and has an active programme of
exploration, appraisal and development within its portfolio of oil and gas
assets. Egdon is an approved operator in the UK.  Egdon was formed in 1997
and listed on AIM in December 2004.

 

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