TIDMEDR
RNS Number : 0273V
Egdon Resources PLC
31 October 2017
31 October 2017 Embargoed for 7.00am
EGDON RESOURCES PLC
("Egdon" or "the Group" or "the Company")
Final Results for the Year Ended 31 July 2017
Egdon Resources plc (AIM: EDR), a UK-based exploration and
production company primarily focused on the hydrocarbon-producing
basins of onshore UK, today announces its audited results for the
year ended 31 July 2017.
Operational and Corporate Highlights
-- Successful placing and open offer to raise GBP5.06 million before costs in November 2016
-- Planning consent granted to operator IGas to drill up to two
exploratory wells at Springs Road, North Nottinghamshire (Egdon
14.5% interest) - Egdon is carried on these initial wells
-- ERC Equipoise reported an independent assessment of the
undiscovered gas initially in place ("GIIP") in ten previously
unassessed licences resulting in a total mean volume of 50.9
trillion cubic feet ("TCF") of gas net to the Company
-- Issue of the Wressle Environmental Permit variations.
Submission of the appeals against the January and July planning
refusals which have been co-joined and will be considered at an
appeal hearing in November 2017
-- Acquisition of additional interests in PEDL068, PEDL201, PEDL306 and PEDL334
-- Acquisition of a 50% interest in PEDL278 containing the Kirk
Smeaton tight gas discovery and further unconventional resources
potential
-- Acquisition of an additional 12% interest in PEDL209 (deep)
and signature of a new option agreement with Total which, if
exercised, includes a carried work programme valued at up to
GBP4.85 million to Egdon
-- Acquisition of the Fiskerton Airfield producing oil field
(EXL294) in the East Midlands for a cash consideration of
US$750,000
-- Completion of the Company's exit from France
Financial Highlights
-- Oil and gas revenues during the period of GBP1.04 million (2016: GBP1.59 million)
-- Loss for the period of GBP1.70 million for the year ended 31
July 2017 after net write downs and impairments of GBP0.19 million
(2016: loss of GBP2.69 million after net write downs and
impairments of GBP0.72 million)
-- Basic loss per share of 0.68p (31 July 2016: basic loss per share of 1.21p)
-- Cash at bank of GBP6.06 million as at 31 July 2017 (31 July 2016: GBP2.68 million)
-- Net current assets as at 31 July 2017 of GBP6.40 million (31 July 2016: GBP4.18 million)
-- Net assets as at 31 July 2017 of GBP32.70 million (31 July 2016: GBP29.43 million)
Commenting on the results, Philip Stephens, Chairman of Egdon
said;
"In a period of further progress, we were pleased to complete an
equity cash raising of GBP5.06 million in November 2016, which has
significantly strengthened our balance sheet. An independent
evaluation of the net gas in place for our unconventional resources
has given a figure of 50.9 TCF, which shows an increase of 180%
over the estimate made two years ago. Our conventional resources
portfolio contains a number of very attractive prospects, the value
of which we are looking to progress in the next 12 to 18
months."
For further information please contact:
Egdon Resources plc
Mark Abbott 01256 702 292
Buchanan
Richard Darby, Anna Michniewicz 020 7466 5000
Nominated Adviser and Broker - Cantor Fitzgerald Europe
David Porter (Corporate Finance) 020 7894 7000
Joint Broker - VSA Capital Limited
Andrew Monk (Corporate Broking) 020 3005 5000
Andrew Raca (Corporate Finance)
Notes to Editors:
Egdon Resources plc (AIM: EDR) is an established UK-based
exploration and production company primarily focused on onshore
exploration and production in the hydrocarbon-producing basins of
the UK.
Egdon currently holds interests in 43 licences in the UK and has
an active programme of exploration, appraisal and development
across its balanced 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.
In accordance with the AIM Rules - Note for Mining and Oil and
Gas Companies, the information contained in this announcement has
been reviewed and signed off by the Managing Director of Egdon
Resources plc Mark Abbott, a Geoscientist with over 29 years'
experience.
Evaluation of hydrocarbon Reserves, Prospective and Contingent
Resources and undiscovered Gas Initially In Place have been
assessed in accordance with 2007 Petroleum Resources Management
System prepared by the Oil and Gas Reserves Committee of the
Society of Petroleum Engineers (SPE) and reviewed and jointly
sponsored by the World Petroleum Council (WPC), the American
Association of Petroleum Geologists (AAPG) and the Society of
Petroleum Evaluation Engineers (SPEE).
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). Upon the
publication of this announcement via Regulatory Information Service
("RIS"), this inside information is now considered to be in the
public domain.
Chairman's Statement
I can report that we have continued to make progress with our
strategic objectives throughout this reporting period.
Highlights have included:
Placing and Open Offer: We substantially strengthened our
balance sheet during the period through a placing and open offer
which raised gross proceeds of GBP5.06 million enabling Egdon to
pursue its stated strategy.
Springs Road Planning Award: In November 2016 Nottinghamshire
County Council granted consent to develop a hydrocarbon wellsite
and to drill up to two exploratory wells at Springs Road, North
Nottinghamshire. We are being carried on these potentially play
opening wells in the Gainsborough Trough, our core area for
unconventional resources exploration, during 2018.
Growing our Unconventional Resources Assets: Over the past three
years Egdon has successfully increased its
unconventional resources acreage position in Northern England by
266% to c. 205,800 acres net (833km(2) net) through a series of
targeted acquisitions, farm-ins and success in the 14th Licensing
Round.
Wressle Oil Field: We remain committed to, and optimistic about,
obtaining planning consent for the development of the Wressle oil
discovery, despite the refusal of our applications in January and
July 2017. We now look forward to the planning appeal in early
November and the resulting decision, which is likely in early
2018.
Fiskerton Airfield Acquisition: We acquired the Fiskerton
Airfield producing oil field (EXL294) in the East Midlands which
adds production from the effective date of 1 January 2017. We are
confident that production levels and profitability from the field
can be enhanced by well workovers.
Financial and Statutory Information
Revenue from oil and gas production during the year was lower at
GBP1.04 million (2016: GBP1.59 million) on production of 38,346
barrels of oil equivalent ("boe") (2016: 64,604 boe).
The Group recorded a loss of GBP1.70 million for the year ended
31 July 2017, reduced by 36.7% compared to 2016, after write downs,
pre-licence costs and impairments of GBP0.19 million (2016: loss of
GBP2.69 million after write downs, pre-licence costs and
impairments of GBP0.72 million).
The Group has maintained a focus on managing cash resources and
at year-end had net current assets of GBP6.40 million (2016:
GBP4.18 million) of which GBP6.06 million was cash (2016: GBP2.68
million).
The Group remains debt free.
In line with last year, the Directors do not recommend the
payment of a dividend.
Portfolio Management
Egdon has completed its exit from France during the period. The
Company had held interests in France since 1998 and with the sale
of Egdon Resources (New Ventures) Limited in 2010 for GBP4.5
million, ultimately realised a profitable return on our French
involvement.
In the UK, the Company was awarded interests in nine new
licences in the 14th Licensing Round and, with the subsequent
acquisition of PEDL278 and of EXL294, held effective interests in
43 UK Licences at year-end (2016: 32).
UK Unconventional Resources
Over the past three years Egdon has successfully increased its
unconventional resources acreage position in Northern England by
266% to c. 205,800 acres net and its undiscovered gas initially in
place ("GIIP") by 180% to a mean volume of 50.9 TCF through a
series of targeted acquisitions, farm-ins and success in the 14(th)
Licensing Round.
The remainder of 2017 and the early part of 2018 is expected to
see significant activity in the sector with planned drilling,
hydraulic fracturing and testing of two horizontal wells at Preston
New Road by Cuadrilla, hydraulic fracturing and testing operations
by Third Energy at Kirby Misperton-8, and 3D seismic acquisition by
INEOS in the East Midlands including over parts of Egdon's licences
in the Wellbeck Low. The testing at Kirby Misperton-8 has potential
read through to Egdon's interests in the neighbouring Cloughton gas
discovery (PEDL343) and the prospective Carboniferous section at
the Resolution Prospect offshore.
In relation to our own licence activity, the operator of
PEDL140, IGas, has advised that it intends to drill Springs Road-1,
the potentially play opening Gainsborough Trough exploration well,
in early 2018 once all planning conditions have been discharged.
This is a key well for Egdon as it is located in our core area for
unconventional resources. The well will drill a thick Lower
Carboniferous sequence and will provide a full suite of modern data
with which to evaluate the play.
We have also made considerable technical progress on our
operated and non-operated 14th Round Licences since their award and
are planning new seismic acquisition on several licences during
2018.
Conventional Resources Exploration and Appraisal
There is significant potential for growth via exploration and
appraisal drilling within our existing conventional resources
portfolio of assets. The lower capital and operating costs
associated with onshore UK developments mean that new
projects remain commercially attractive even with lower
commodity prices.
However, the pace of our exploration drilling activity is in
part dependent upon successful farm-outs as we look to manage
carefully our cash resources and technical risk.
Egdon's next drilling activity is likely to be the Holmwood-1
conventional resources exploration well in Weald Basin licence
PEDL143 (operator Europa Oil and Gas Limited). Operations are
expected to commence in H1 2018 once all final approvals are in
place. In addition to the Portland and Corallian sandstones, this
well will target Kimmeridge limestones which have been proven at
Horse Hill-1 (8km to the east of Holmwood), Brockham (5km to the
north-east) and, most recently, at Broadford Bridge. Egdon's costs
for this test of this high potential play will be carried up to a
cap of GBP0.59 million.
Egdon expect to commence operations at Biscathorpe-2 (PEDL253)
in early 2018 and, dependent upon securing a farm-out, at the North
Kelsey Prospect (PEDL241), both located in Lincolnshire.
Egdon has made further progress during the period with the
Resolution Prospect (P.1929) just offshore the North Yorkshire
coast. We now plan to acquire a 3D marine seismic survey during
2018 to optimise the planning for an offshore well to appraise this
1966 gas discovery. Egdon continues to seek an industry partner
and/or investors prior to commencing the survey.
Production
Production during the period was 105 boe per day ("boepd")
(2016: 177 boepd), from Ceres, Keddington and Avington with a
contribution from Fiskerton Airfield, in line with our latest
guidance of 100 -110 boepd.
Outlook
Our initial production guidance for the coming period remains at
100 -110 boepd. We expect to increase this when the workovers at
Fiskerton Airfield have been completed and the outcome of the
planning appeal for the Wressle field development is known.
An independent evaluation of the net gas in place for our
unconventional resources has given a figure of 50.9 TCF which shows
a considerable increase over the last estimate made two years ago.
Our conventional portfolio contains a number of very attractive
prospects which we are looking to progress in the next 12 to 18
months.
Our main operational effort during the coming period will be
focused on:
-- Workovers of the producing wells at Fiskerton Airfield
-- Subject to the outcome of the planning inquiry, bringing the
Wressle-discovery into commercial production
-- Drilling of wells at Springs Road-1, Holmwood-1, Biscathorpe-2 and North Kelsey-1
-- Introducing a funding partner and acquiring a marine 3D
survey over the Resolution Prospect, prior to finalising a drilling
location
The fundamentals of the business are robust with the Company
debt free and holding a range of high potential assets in the UK, a
location and jurisdiction which remains commercially attractive
even under lower commodity prices. Our cash position allows us to
deliver on our near-term strategy. Lastly, I would like to thank
our shareholders for their continued patient support and our
dedicated team for their professionalism and hard work through the
year.
Philip Stephens
Chairman
30 October 2017
Managing Director's Operating Review
I am pleased to update shareholders with a more detailed review
of our assets, operations and plans with a
focus on progress against our strategy, key priorities, risks
and potential growth drivers.
Our website (www.egdon-resources.com ) provides details of all
of our assets and operations.
UK Unconventional Resources
Egdon has built a significant unconventional resources acreage
position in Northern England (c. 205,800 acres net (833km(2) net))
through a series of targeted acquisitions, farm-ins and success in
the 14th Round. Egdon now holds a material interest in a number of
key prospective geological basins including the Gainsborough
Trough, the Widmerpool Basin, the Cleveland Basin and the Humber
Basin and has reported an independently assessed mean volume of
undiscovered GIIP of 50.9 TCF.
In the Gainsborough Trough, the operator IGas has advised that
it intends to drill the potentially play opening exploration well
Springs Road-1 (PEDL140, Egdon 14.5% interest carried through the
well) in early 2018. This is a key well for Egdon as it is located
in our core area for unconventional resources, and will provide a
full suite of modern data with which to evaluate the play.
In April 2017, we announced the acquisition of an additional 12%
interest in PEDL209 located to the immediate east of PEDL140, and
the signature of a new option agreement with Total which, if
exercised, would provide for a carried work programme valued at up
to GBP4.85 million to Egdon's 36% retained interest. Elsewhere in
the same basin, we announced in June the acquisition of a
non-operated 50% interest in PEDL278 containing the Kirk Smeaton
tight gas discovery with additional unconventional resources
potential.
We have made considerable progress on our operated and
non-operated 14th Round licences since formal award in July 2016.
Work to date has included extensive cuttings sampling and analysis
and integration with petrophysical models, reprocessing and
interpretation of existing seismic data, and interpretation of new
gravity data.
In Humber Basin licence PEDL334 Egdon has reprocessed and
interpreted 207km of existing vintage 2D seismic data which will
inform the planning and design of a new 100km 2D seismic programme
over the licence. In the Widmerpool Basin Egdon has reprocessed
450km of vintage 2D seismic data over adjoining licences PEDL306
and PEDL201 to aid in the planning of a new 50km 2D seismic
programme.
In our non-operated licences in the Cleveland Basin, PEDL343 and
PEDL259, operator Third Energy has carried out extensive
mineralogical studies on drill cuttings from key regional wells to
compare them with Kirby Misperton-8 which is expected to be tested
soon. These studies have provided encouragement that the geology on
these licences is similar to that penetrated by Kirby
Misperton-8.
We have begun to explore the potential for farming-out interests
in certain of our licences where Egdon currently holds high equity
positions as part of our strategy to advance proof of concept
exploration at minimum cost to our investors.
Conventional Resources Exploration and Appraisal
France
The Company completed its exit from France during the year by
withdrawing from the renewal process for both the Pontenx and Mairy
permits. The Company's attention and resources are now focused
solely on the UK.
UK
We have made some progress during the period with our strategy
to add additional reserves through an active UK
conventional resources drilling programme, whilst managing
technical risk and financial exposure through farm-out and
deal-making.
Egdon's next drilling activity is likely to be the Holmwood-1
conventional exploration well in Weald Basin licence PEDL143 (Egdon
18.4%) where the operator, Europa Oil and Gas ("Europa"), has
advised that they expect to commence operations in H1 2018 once all
final approvals are in place. In addition to targets in the
Portland and Corallian sandstones, where Europa has Estimated Mean
Prospective Resources of 5.6 million barrels ("mmbbls") of oil (net
Egdon 1.03 mmbbls), Holmwood-1 will also test the highly
prospective Kimmeridge limestone play. The Horse Hill-1 well (UK
Oil and Gas Investments plc ("UKOG")) is located some 8km to the
east of Holmwood in a similar structural
position and tested 323 barrels of oil per day ("bopd") from
Portland sandstones and 1,365 bopd in total from two limestone
intervals in the Kimmeridge Clay Formation. Egdon's costs are
carried on the Holmwood-1 well by UKOG up to a cap of GBP0.59
million. Over the next few months extended well tests at Horse
Hill-1 (UKOG), production at Brockham (Angus Energy plc) and
testing at Broadford Bridge-1 (UKOG) will provide further insights
into the commerciality of the Kimmeridge limestone play and its
potential at Holmwood.
The Oil and Gas Authority ("OGA") has granted Egdon licence
extensions for both PEDL253 (Biscathorpe) and PEDL241 (North
Kelsey) to 30 June 2018. In July, Egdon announced the issue of the
Environmental Permit required for the operated Biscathorpe-2
exploration well in Lincolnshire licence PEDL253. The Biscathorpe
Prospect is estimated by Egdon to hold Mean Prospective Resources
of 14 mmbbls of oil (Egdon 7.3 mmbbls). Operations at Biscathorpe-2
are expected to commence early in 2018.
We also continue to pursue partnership opportunities for the
North Kelsey Prospect in Lincolnshire licence PEDL241 where we
estimate Mean Prospective Resources of 6.5 mmbbls of oil (Egdon 5.2
mmbbls) in stacked reservoir targets, and hope to drill the well by
mid-2018.
Egdon has made continued progress with the Resolution Prospect
(337 billion cubic feet ("bcf") of gas, Egdon 100%) in UK offshore
licence P.1929. Following the interpretation and mapping of
reprocessed seismic data, we now plan to acquire a new 3D seismic
survey during 2018 to confirm the potential resource volumes and
enable optimisation of the planning for an offshore appraisal well.
Egdon has completed the design, feasibility and tendering for this
survey and is actively seeking an industry partner and/or investor
for this next stage of the project. The 3D survey will also assist
in quantifying the Carboniferous potential within and around the
Resolution Prospect where prospectivity in tight gas sands, a play
currently being tested by BP offshore and Third Energy onshore, may
be significant on this large regional structural high.
Production
Production during the period was 105 boepd (2016: 177 boepd)
from Ceres, Keddington, Avington and Fiskerton Airfield, in line
with the revised guidance of 100 -110 boepd. Production was lower
than originally expected at the start of the period due to the
timing of Ceres maintenance and the delay to the expected start-up
of the Wressle oilfield development.
The Ceres gas field has been shut-in since October 2016 with
attributable production derived from "back-out" gas produced from
the Mercury and Neptune gas fields. Installation of a new flow
meter at Ceres, expected in 2018 will facilitate simultaneous
production from Ceres with the other fields in the system. The
timing of the 2016 (September-October) and 2017 (July) maintenance
shut-downs has resulted in only nine months of production
contribution from Ceres during the reported financial year which
has resulted in a reduction in revenue in the year.
The Keddington oil field continues to produce in line with
forecasts from the K-3Z well at c. 24 bopd (net to Egdon 11 bopd)
and we now expect to take a decision on further drilling on the
field in early 2018. Avington also continues to produce broadly in
line with expectations.
In July 2017, Egdon announced the acquisition of 100% of the
producing Fiskerton Airfield oil field in Lincolnshire licence
EXL294 for $0.75 million. The field has suffered from a lack of
investment over recent years and we plan to undertake simple,
low-cost workover operations to enhance production and
profitability in the short-term, adding valuable near-term
cash-flow to Egdon's portfolio. In the longer term, we will
investigate the potential to enhance productivity through in-fill
drilling. The acquisition has an effective date of 1 January
2017.
A significant focus during the period has been to progress our
Wressle oilfield development, where planning consent was refused by
the North Lincolnshire District Council Planning Committee at
meetings in January and July 2017 despite recommendations to
approve from the council's planning officers on each occasion. We
have co-joined appeals against both of these decisions and a
planning inquiry is to be held in early November 2017.
The inquiry will be heard by an independent planning inspector
who will consider the applications in the context of their
planning merits. A successful outcome to this process would lead
to the commencement of operations to establish long-term production
which would be expected to add 125 bopd to Egdon's production. The
Environmental Permits for the development were granted in April
2017.
Egdon has interests in a number of currently shut-in fields
where we continue to seek innovative ways of bringing them back
into profitable production. For example, we have initiated
discussions with third parties on potential further investment in,
and the restarting of production from, the shut-in Dukes Wood
(PEDL118) and Kirklington (PEDL203) oil fields. If an agreement
were to be reached we would expect operations to commence in
2018.
We also continue to evaluate the shut-in Waddock Cross oil field
(PL090) where we have nearly completed reprocessing 3D seismic
data, and the Kirkleatham gas field (PEDL068) where we have
completed specialist processing of key seismic lines to confirm the
remaining unproduced gas resources and have identified additional
gas potential within the underlying Carboniferous sandstones.
Outlook
Production guidance for the coming financial year is stable at
100 -110 boepd from Ceres, Keddington, Avington and Fiskerton
Airfield. This will be revisited once the results of the workovers
at Fiskerton Airfield and the outcome of the Wressle planning
inquiry are known. For example, a successful outcome to the
planning appeals for Wressle could add 125 bopd to Egdon's
production later in the 2017-2018 financial year.
In addition to pursuing the Wressle planning inquiry, our main
operational focus during the coming period will be:
-- Completing the workover operations at Fiskerton Airfield
-- Drilling the exploration wells at Springs Road-1 and
Holmwood-1 where we have significant carried positions
-- Introducing a partner and acquiring the marine 3D seismic
survey over the Resolution Prospect and progressing with plans for
drilling
-- Drilling exploration wells at Biscathorpe-2 and potentially North Kelsey-1 in 2018
-- Progressing farm-out discussions in certain of our unconventional resources assets
We are at an important juncture in terms of UK Onshore sector
activity with the coming period seeing the drilling and testing of
several unconventional resources wells and the long-term testing of
the Kimmeridge limestones play, potentially leading to an increased
valuation for the UK onshore sector as a whole and especially those
companies with a broad range of acreage exposure such as Egdon.
Springs Road-1 will be especially important to us in this respect.
Positive news from these activities will help drive our planned
farm-out activity in these narrowly held opportunities. With this
background, the quality of our assets, our planned operations, and
current financial position, we remain confident and optimistic in
our ability to deliver value for our shareholders.
I would like to record my thanks for the continued efforts of
the small but professional and committed team at Egdon who continue
to work hard on behalf of shareholders.
Mark Abbott
Managing Director
30 October 2017
EGDON RESOURCES PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEARED 31 JULY 2017
2017 2016
Notes GBP GBP
----------------------------------------------------- ----- ----------- -----------
Continuing operations
Revenue 1,039,348 1,586,120
Cost of sales - exploration costs written
off and pre-licence costs (32,961) (74,523)
Cost of sales - write off of French assets (158,291) -
Cost of sales - impairments and impairment
reversals - (643,000)
Cost of sales - depreciation (462,500) (1,269,155)
Cost of sales - other (922,510) (1,219,218)
----------------------------------------------------- ----- ----------- -----------
Total cost of sales (1,576,262) (3,205,896)
----------------------------------------------------- ----- ----------- -----------
Gross loss (536,914) (1,619,776)
Administrative expenses (1,178,249) (1,144,720)
Other operating income 58,145 112,456
(1,657,018) (2,652,040)
Finance income 4,947 8,314
Finance costs (46,775) (41,845)
----------------------------------------------------- ----- ----------- -----------
Loss before taxation (1,698,846) (2,685,571)
Taxation - -
----------------------------------------------------- ----- ----------- -----------
Loss for the year (1,698,846) (2,685,571)
Other comprehensive income for the year - -
----------------------------------------------------- ----- ----------- -----------
Total comprehensive income for the year attributable
to equity holders of the parent (1,698,846) (2,685,571)
----------------------------------------------------- ----- ----------- -----------
Basic loss per share 2 (0.68)p (1.21)p
Diluted loss per share (0.68)p (1.21)p
----------------------------------------------------- ----- ----------- -----------
EGDON RESOURCES PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 JULY 2017
Notes 2017 2016
GBP GBP
-------------------------------------- ----- ----------- -----------
Non-current assets
Intangible assets 19,230,801 18,370,375
Property, plant and equipment 9,263,814 8,682,892
-------------------------------------- ----- ----------- -----------
Total non-current assets 28,494,615 27,053,267
-------------------------------------- ----- ----------- -----------
Current assets
Trade and other receivables 1,506,610 2,540,987
Available for sale financial assets 50,000 50,000
Cash and cash equivalents 6,056,824 2,678,780
-------------------------------------- ----- ----------- -----------
Total current assets 7,613,434 5,269,767
-------------------------------------- ----- ----------- -----------
Current liabilities
Trade and other payables (1,216,166) (1,085,005)
Net current assets 6,397,268 4,184,762
-------------------------------------- ----- ----------- -----------
Total assets less current liabilities 34,891,883 31,238,029
Non-current liabilities
Provisions 3 (2,187,056) (1,803,324)
-------------------------------------- ----- ----------- -----------
Net assets 32,704,827 29,434,705
-------------------------------------- ----- ----------- -----------
Equity
Share capital 14,550,727 14,164,337
Share premium 25,202,194 20,619,616
Share based payment reserve 225,033 226,401
Retained earnings (7,273,127) (5,575,649)
-------------------------------------- ----- ----------- -----------
32,704,827 29,434,705
-------------------------------------- ----- ----------- -----------
EGDON RESOURCES PLC
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEARED 31 JULY 2017
2017 2016
GBP GBP
------------------------------------------- ----------- -----------
Cash flows from operating activities
Loss before tax (1,698,846) (2,685,571)
Adjustments for:
Depreciation and impairment of fixed
assets 463,838 1,918,685
Exploration costs written off 176,840 44,564
Foreign exchange loss/(gains) 16,208 (27,546)
Revaluation of accrued income - 103,258
Decrease in trade and other receivables 1,034,480 215,698
(Decrease)/increase in trade payables
and other payables (456,255) 172,818
Finance costs 46,775 41,845
Finance income (4,947) (8,314)
Share based remuneration charge - 65,971
------------------------------------------- ----------- -----------
Cash used in operations (421,907) (158,592)
Interest paid - -
Taxation paid - -
------------------------------------------- ----------- -----------
Net cash flow used in operating activities (421,907) (158,592)
------------------------------------------- ----------- -----------
Investing activities
Finance income 4,947 8,314
Payments for exploration and evaluation
assets (908,323) (2,141,571)
Purchase of property, plant and equipment (145,433) (237,250)
Net cash used in capital expenditure
and investing activities (1,048,809) (2,370,507)
------------------------------------------- ----------- -----------
Financing activities
Issue of shares 5,075,023 -
Costs associated with issue of shares (210,055) -
Net cash flow generated from financing 4,864,968 -
------------------------------------------- ----------- -----------
Net increase/(decrease) in cash and
cash equivalents 3,394,252 (2,529,099)
Cash and cash equivalents as at 31
July 2016 2,678,780 5,180,333
Effects of exchange rate changes on
the balance of cash held in foreign
currencies (16,208) 27,546
------------------------------------------- ----------- -----------
Cash and cash equivalents as at 31
July 2017 6,056,824 2,678,780
------------------------------------------- ----------- -----------
In 2017 significant non cash transactions comprised the issue of
equity share capital with a market value of GBP104,000 as consideration
for the acquisition of additional interests in licences PEDL201
and PEDL209.
In 2016 there were no significant non cash transactions.
EGDON RESOURCES PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEARED 31 JULY 2017
Group Share based
Share Share payment Retained Total
capital premium reserve earnings equity
GBP GBP GBP GBP GBP
--------------------------- ---------- ---------- ----------- ----------- -----------
Balance at 1 August 2015 14,164,337 20,619,616 160,430 (2,890,078) 32,054,305
--------------------------- ---------- ---------- ----------- ----------- -----------
Loss for the year - - - (2,685,571) (2,685,571)
--------------------------- ---------- ---------- ----------- ----------- -----------
Total comprehensive income
for the year - - - (2,685,571) (2,685,571)
Share option charge - - 65,971 - 65,971
--------------------------- ---------- ---------- ----------- ----------- -----------
Balance at 31 July 2016 14,164,337 20,619,616 226,401 (5,575,649) 29,434,705
--------------------------- ---------- ---------- ----------- ----------- -----------
Loss for the year - - - (1,698,846) (1,698,846)
--------------------------- ---------- ---------- ----------- ----------- -----------
Total comprehensive income
for the year - - - (1,698,846) (1,698,846)
Issue of ordinary shares 384,615 4,775,988 - - 5,160,603
Share issue costs - (210,055) - - (210,055)
Share options exercised 1,775 16,645 (1,368) 1,368 18,420
--------------------------- ---------- ---------- ----------- ----------- -----------
Balance at 31 July 2017 14,550,727 25,202,194 225,033 (7,273,127) 32,704,827
--------------------------- ---------- ---------- ----------- ----------- -----------
EGDON RESOURCES PLC
Notes to the Financial Statements
FOR THE YEARED 31 JULY 2017
1. Basis of Accounting and Presentation of Financial
Information
The financial information set out in this announcement does not
constitute the statutory accounts of the Group for the years ended
31 July 2017 or 31 July 2016. The financial information has been
extracted from the statutory accounts of the Group for the years
ended 31 July 2017 and 31 July 2016.
The Directors have prepared the accounts on the going concern
basis which assumes that the Group will continue in operational
existence without significant curtailment of its activities for the
foreseeable future.
The auditor, Nexia Smith & Williamson, has reported on the
statutory accounts for the years ended 31 July 2017 and 2016; the
audit reports were unqualified and did not contain statements under
either section 498(2) or 498(3) of the Companies Act 2006.
The statutory accounts for the year ended 31 July 2016 have been
delivered to the Registrar of Companies; those for the year ended
31 July 2017 were approved by the Board on 30 October 2017 and will
be delivered to the Registrar of Companies following the Annual
General Meeting.
The Annual Report for the year ended 31 July 2017, including the
auditor's report, will be posted to shareholders during the week
commencing 6 November 2017 and will be available from the same date
both to be downloaded from the Company's website at
www.egdon-resources.com and in hard copy from Egdon Resources plc,
The Wheat House, 98 High Street, Odiham, Hampshire, RG29 1LP.
There were no changes to the Group's accounting policies for the
year ended 31 July 2017 as compared to those published in the
statutory financial statements for the year ended 31 July 2016.
This preliminary announcement was approved by the Board on 30
October 2017.
2. Loss per share
Basic loss per share
2017 2016
GBP GBP
------------------------------------------ ----------- -----------
Loss for the financial year (1,698,846) (2,685,571)
Basic weighted average ordinary shares in
issue during the year 248,740,775 221,345,811
------------------------------------------ ----------- -----------
Pence Pence
--------------------- ------ ------
Basic loss per share (0.68) (1.21)
--------------------- ------ ------
Diluted loss per share
2017 2016
GBP GBP
----------------------------------------- ----------- -----------
Loss for the financial year (1,698,846) (2,685,571)
Diluted weighted average ordinary shares
in issue during the year 248,740,775 221,345,811
----------------------------------------- ----------- -----------
Pence Pence
----------------------- ------ ------
Diluted loss per share (0.68) (1.21)
----------------------- ------ ------
For 2017 and 2016, the share options are not dilutive as a loss
was incurred.
3. Provision for liabilities
Other Decommissioning Reinstatement
provisions provision provision Total
Group GBP GBP GBP GBP
------------------------------------------ ---------- --------------- ------------- ---------
At 1 August 2015 20,525 1,585,763 221,000 1,827,288
Provision created during the year - 11,545 14,140 25,685
Transfer of provision on reclassification
to D&P assets - 47,000 (47,000) -
Disposals - (91,494) - (91,494)
Unwinding of discount - 41,845 - 41,845
------------------------------------------ ---------- --------------- ------------- ---------
At 1 August 2016 20,525 1,594,659 188,140 1,803,324
Provision created during the year - 331,791 5,166 336,957
Unwinding of discount - 46,775 - 46,775
------------------------------------------ ---------- --------------- ------------- ---------
At 31 July 2017 20,525 1,973,225 193,306 2,187,056
------------------------------------------ ---------- --------------- ------------- ---------
At 31 July 2017 provision has been made for decommissioning
costs on the productive fields at Fiskerton, Keddington,
Kirkleatham, Ceres, Avington, Dukes Wood/Kirklington and Waddock
Cross. Provision has also been made for reinstatement costs
relating to exploration and evaluation assets where work performed
to date gives rise to an obligation, principally for site
restoration. Assumptions, based on the current economic
environment, have been made which management believe are a
reasonable basis upon which to estimate the future liability. This
estimate will be reviewed regularly to take into account any
material change to assumptions. Actual costs will depend on future
market prices, any variation in the extent of decommissioning and
reinstatement to be performed, whether the works can be performed
as part of a multi-well programme or in isolation and progress in
the relevant technologies. Decommissioning and reinstatement costs
are expected to arise between 2018 and 2038.
Other provisions represent the amount expected to be payable to
the former shareholder of Egdon Resources Avington Ltd under the
Net Profit Interest agreement entered into at the time of
acquisition. Of the total provision, GBP2,567 (2016: GBP3,117) is
estimated to be payable within one year.
4. Annual General Meeting
The Annual General Meeting will be held at the offices of Norton
Rose Fulbright, 3 More London Riverside, London, SE1 2AQ at 11.30
hours on 7 December 2017.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR LFFEIIILIVID
(END) Dow Jones Newswires
October 31, 2017 03:00 ET (07:00 GMT)
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