TIDMEDR
RNS Number : 0870L
Egdon Resources PLC
17 April 2018
17 April 2018 Embargoed for 7.00am
EGDON RESOURCES PLC
("Egdon" or "the Group" or "the Company")
Interim Results for the Six Months Ended 31 January 2018
Egdon Resources plc (AIM:EDR), the UK-based exploration and
production company with a primary focus on the onshore UK,
announces its unaudited interim results for the six months ended 31
January 2018 ('the period').
Overview and Highlights
Operational and Corporate
-- Conclusion of legal agreements and commencement of site
construction at Springs Road where the operator IGas has advised it
expects to commence drilling around mid-2018
-- Following rejection by the Planning Inspectorate of Egdon's
appeals against the two planning refusals in respect of the
development of the Wressle oil discovery, Egdon announced its
intention to submit a new planning application to address in detail
all matters highlighted by the Inspector in his Decision Notice and
to also make an application to extend the existing planning for the
wellsite
-- Acquisition of 100% interest in Promote Licence P2304 from
Arenite Petroleum Limited and Europa Oil & Gas Limited
resulting in an expanded core area to the south of the Resolution
offshore gas discovery
-- Completion of the acquisition of the producing Fiskerton
Airfield oil field in Lincolnshire licence EXL294 and subsequent
sale of 20% interest to Union Jack Oil plc to balance financial
exposure
-- Production of 17,962 barrels of oil equivalent ("boe") (98
barrels of oil equivalent per day "boepd") (H1 2017: 16,882 boe; 94
boepd)
Financial Performance
-- Oil and gas revenues during the period GBP0.51 million (H1 2017: GBP0.51 million)
-- Loss for the period of GBP0.85 million (H1 2017: loss of GBP0.73 million)
-- Cash at bank of GBP4.10 million (H1 2017: GBP6.80 million)
-- Net current assets as at 31 January 2018 of GBP5.08 million (H1 2017: GBP8.00 million)
-- The Company has no debt (H1 2017: Nil)
Post-Period Events
-- Farm-out of interests in PEDL253 (Biscathorpe) to Union Jack
Oil plc and Humber Oil & Gas Limited
-- Workovers completed of two wells at Fiskerton Airfield with
production increased to approaching 30 barrels of oil per day
("bopd"), ahead of further optimisation, an increase of 14 bopd
from pre workover levels
-- Planning application submitted on 13 April 2018 to extend
existing planning consent at the Wressle wellsite for a period of
12 months from the decision date
-- Additional site investigation boreholes and two deeper cored
boreholes completed to support a new planning application for
Wressle field development due for submission within the next
month
-- Submission of planning applications to extend existing
consents for a further 3 years at both North Kelsey and
Biscathorpe
-- Encouraging Results from third party activity includes the
drilling of UK's first horizontal shale gas well at Preston New
Road in Lancashire by Cuadrilla
Commenting on the results, Philip Stephens, Chairman of Egdon
said
" After a busy and productive six months, we are confident that
we will make further progress in the second half of the year,
especially on two important fronts. Firstly, after many setbacks,
we hope to be successful in gaining planning permission in order to
allow us to develop our conventional oil discovery at Wressle.
Secondly, we await the drilling of the first well at Springs Road
where we have a carried interest in this significant unconventional
prospect in the Gainsborough Trough. Success in these prospects
will significantly enhance our future.
Whilst challenges no doubt remain, the UK shale business is
gaining considerable traction with the completion recently of the
first horizontal shale gas well in Lancashire. With an increased
level of industry activity due to take place over the coming
months, we believe the spotlight will shine more brightly on this
exciting space, and Egdon's sizeable acreage position ensures we
represent a compelling vehicle for investors to benefit from the
eventual uptick in much needed onshore activity."
An audiocast of the Results Presentation is available to view
via the following link with immediate effect:
http://vm.buchanan.uk.com/2018/egdon170418/registration.htm
For further information please contact:
Egdon Resources plc
Mark Abbott 01256 702 292
Buchanan
Ben Romney, Anna Michniewicz 020 7466 5000
Nominated Adviser and Broker - Cantor Fitzgerald
Europe
David Porter / Nick Tulloch (Corporate
Finance)
Caspar Shand Kydd / Alex Pollen (Sales) 020 7894 7000
Joint Broker - VSA Capital Limited
Andrew Monk (Corporate Broking)
Andrew Raca (Corporate Finance) 020 3005 5000
Egdon Resources plc (LSE: EDR) is an established UK-based
exploration and production company focused on onshore exploration
and production in the hydrocarbon-producing basins of the UK.
Egdon holds interests in 43 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.
Qualified Person Review
In accordance with the AIM Rules - Note for Mining and Oil and
Gas Companies, this release has been reviewed by Mark Abbott,
Managing Director of Egdon, who is a geoscientist with over 30
years' experience and is a member of the Petroleum Exploration
Society of Great Britain and a Fellow of the Geological Society. Mr
Abbott has consented to the inclusion of the technical information
in this release in the form and context in which it appears.
Evaluation of hydrocarbon volumes has 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
In the six months ended 31(st) January 2018, we have made
important progress in some areas which have been somewhat tempered
by unexpected planning setbacks, which have delayed the development
of our conventional oil production. Our share price has been
adversely impacted by these uncertainties, but we are confident
that we will make good progress in the next six months as outlined
below.
On a more general note we have recently experienced unusually
adverse weather conditions in the UK and this has highlighted the
potential vulnerability of energy supply to this country. In this
context, the development of indigenous onshore UK oil and gas
production seems to us to have an ever more vital role to play
alongside development of renewable sources of energy.
Developments during the period have included:
Springs Road (Egdon 14.5%)
Licence operator IGas has concluded all legal agreements with
Nottinghamshire County Council and commenced civil works at the
Springs Road site in Nottinghamshire, where planning consent has
been granted for the drilling of two wells. Site construction is
now largely completed and IGas has advised that drilling operations
in the East Midlands will begin around mid-2018. In the coming
months, Egdon looks forward to participating in Springs Road-1, a
potentially play-opening well in our core area for unconventional
resources exploration, the Gainsborough Trough. Egdon's costs are
carried in Springs Road.
Fiskerton Airfield (Egdon 80%)
In October, Egdon completed the acquisition of the producing
Fiskerton Airfield oil field in Lincolnshire licence EXL294 and in
November a 20% interest was sold to Union Jack Oil plc ("UJO") to
balance Egdon's financial and risk exposure to the asset. Despite
challenging weather conditions, workovers of the two producing
wells were successfully completed in the period January to March
2018. Production operations have resumed at Fiskerton with field
production approaching 30 barrels of oil per day ("bopd"), a
significant increase on the pre-workover rates of 16 bopd, prior to
further optimisation including increasing pumping rates.
Wressle Oil Field Development (Egdon 25%):
In early January 2018, The Planning Inspectorate rejected
Egdon's appeals against the planning refusals by North Lincolnshire
County Council's Planning Committee in respect of the development
of the Wressle oil discovery in licences PEDL180 and PEDL182. In
mid-January, Egdon announced its intention to submit a new planning
application for the development of the Wressle oil discovery. Since
then, Egdon has drilled a number of site investigation boreholes
and two deeper cored boreholes. The data from these operations will
be used to support a new planning application containing a revised
site design and hydrogeological risk assessment for the Wressle
Field Development. Once Egdon has received and integrated the
results of the hydraulic conductivity tests carried out on the core
samples, the new planning application for the Wressle Field
Development will be submitted. This is expected to occur in four to
five weeks' time. An application to extend the existing consent for
the Wressle wellsite for a further year was submitted on 13 April
2018.
Endeavour Gas Discovery (P2304) (Egdon 100%)
In December 2017, Egdon announced the acquisition of a 100%
interest in offshore Promote Licence P2304, adjacent to our
Resolution gas discovery (Licence P1929, Egdon 100%), from Arenite
Petroleum Limited and Europa Oil & Gas Limited for a nominal
cash consideration, plus further contingent payments related to
future activity. The licence contains a mapped extension of
Resolution and an additional proven gas discovery made by well
41/24a-1, named Endeavour by Egdon, and has flow tested at rates of
up to 34 million cubic feet of gas per day from well 41/24a-3.
Egdon has independently mapped the Endeavour structure and
attributes a mean prospective resource volume of 27 billion cubic
feet of gas ("bcf") to the discovery.
Financial and Statutory Information
Net production for the period ending 31 January 2018 was 17,962
boe (H1 2017: 16,882 boe). Revenue from oil and gas production
during the period was GBP0.51 million (H1 2017: GBP0.51 million).
Cost of sales from production operations (including shut-in assets)
for the period was GBP0.56 million (H1 2017: GBP0.41 million).
Depreciation for the period was GBP0.20 million (H1 2017: GBP0.23
million).
The Group recorded a loss of GBP0.85 million for the six months
ended 31 January 2018 (H1 2017: loss of GBP0.73 million).
The loss per share for the period was 0.33p (H1 2017: loss of
0.31p).
Net current assets as at 31 January 2018 of GBP5.08 million (H1
2017: GBP8.00 million) including cash at bank of GBP4.10 million
(H1 2017: GBP6.80 million).
The Group remains debt free (H1 2017: Nil).
Strategy
Our strategy focuses on three key near-term objectives to
deliver shareholder value:
-- UK Unconventional Resources - growing the value of
exploration opportunities in Northern England
-- Conventional Resources Exploration and Appraisal - adding
additional reserves and revenues through an active drilling
programme whilst managing risk and financial exposure through
farm-out transactions
-- Production - a continued focus on maximising production
rates, revenues and profitability from existing producing assets
through targeted investment
Operations
Our website (www.egdon-resources.com) provides further details
of all our assets and operations.
UK Unconventional Resources
Egdon has delivered against its strategic objective by building
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 licence round applications.
Egdon now holds a material interest in a number of key prospective
geological basins and has reported an independently assessed mean
volume of undiscovered Gas Initially in Place ("GIIP") of 50.9 TCF.
Springs Road will be a key test of our Gainsborough Trough core
area for shale exploration during the coming months.
In addition to the carried Springs Road well, 2018 should see a
number of important wells and tests by other operators. IGas is
planning to drill at Tinker Lane on the southern margin of the
Gainsborough Trough and has also announced that its mid-term focus
will be to move to pilot development in the Gainsborough Trough.
Cuadrilla has reported encouraging results from the Upper and Lower
Bowland Shale in two vertical wells at its Preston New Road site in
Lancashire and has recently announced the completion of the first
horizontal well. Hydraulic fracturing and flow testing by Cuadrilla
of two horizontal wells at Preston New Road in Lancashire is
planned to start later in 2018. Third Energy is planning to
hydraulically fracture and test at Kirby Misperton in North
Yorkshire once it has concluded financial resilience tests.
Elsewhere INEOS Shale has completed its large 3D acquisition
programme in the East Midlands adjacent to and over some of Egdon's
licences and expects planning inquiries for several proposed shale
exploration wells starting from mid-2018.
In November 2017, INEOS Shale acquired the majority of Total's
interests in the Gainsborough Trough, becoming the funding partner
for the forthcoming Springs Road wells (EDR14.5% carried) and
acquiring the option to farm-in to Egdon's PEDL209 licence.
Conventional Resources Exploration and Appraisal
Post period-end we announced the farm-out of interests in
PEDL253 to UJO and Humber Oil & Gas Limited. The funded
Biscathorpe well targets a prospect that has the potential to be
one of the larger UK onshore oil fields (Egdon 35.8% interest:
Gross Mean Prospective Resources of 14 million barrels of oil
("mmbo")). We continue to look to introduce further partners at
North Kelsey (Egdon 80% interest: Gross Mean Prospective Resources
of 6.5 mmbo). Egdon has submitted applications to extend existing
planning for a further three years at both the Biscathorpe and
North Kelsey exploration sites. A decision on the extension at
North Kelsey was deferred for a site visit at a planning meeting
held on 9 April 2018.
The Company's interest in Holmwood (PEDL143) is largely carried.
Operator Europa has advised that the well could be drilled in H2
2018 subject to agreement of the Construction Transport Management
Plan, the last unfulfilled planning condition and issue of the
Environmental Permit where a "minded to award" decision has been
issued by the Environment Agency. Holmwood is a conventional
prospect with potential for oil trapped in Jurassic sandstone and
limestone reservoirs which have been proven locally at the Brockham
and Horse Hill discoveries. Holmwood has a Gross Mean Prospective
Resource volume of 5.6mmbo (1.14mmbo net to Egdon).
In Egdon's offshore Yorkshire licences, P1929 and the newly
acquired P2304, Egdon plans to progress appraisal of the
prospective gas resources (Egdon 100% interest: mean cases:
Resolution - 337 bcf and Endeavour - 27 bcf) in the enlarged area
via the acquisition of 3D seismic and appraisal drilling during
2019, subject to securing a suitable funding partner.
Production and Development
Production during the period was 98 boepd (H1 2017: 94 boepd)
from Ceres, Keddington, Avington and Fiskerton
Airfield. This is slightly below our guidance of 100 - 110 boepd
due to pump failure at Fiskerton Airfield and weather-related
delays in completion of the workovers, plus a decision to shut-in
production at Avington from January 2018 until a revised forward
plan is agreed.
At Fiskerton Airfield, production has increased from
pre-workover levels of 16 bopd to approaching 30 bopd and further
optimisation will continue over the coming period.
Our production guidance for the financial year ending 31 July
2018 remains c. 100 - 110 boepd.
Production from the Ceres field during the period is via
recovery of back-out gas whilst the well remains shut-in. From
mid-2018 onwards, Egdon's production will see a boost of 145 boepd
from the restoration of production from the Ceres well once a
replacement gas meter has been installed during the summer
maintenance shut-down. In addition, a successful outcome for the
new Wressle field development planning application could see
Egdon's net production from the field reach 125 bopd.
We continue to undertake detailed technical evaluation work to
inform our plans for further development drilling at Keddington and
Waddock Cross and are also looking at innovative ways of restarting
production elsewhere within our portfolio (e.g. Dukes Wood,
Kirklington and Kirkleatham).
Outlook
As we look to enter a more active operational phase, our main
focus during the coming period will be:
-- The carried drilling of the potentially play-opening well at
Springs Road in the Gainsborough Trough, our core area for
unconventional resources exploration
-- Progressing the new Wressle planning application with a view
to gaining consent to develop the field
-- Drilling of the funded Biscathorpe well in mid-2018
-- Drilling of the largely carried Holmwood well later in 2018
-- Introducing a funding partner and acquiring a marine 3D
survey early in 2019 over the Resolution and Endeavour gas
discoveries, prior to finalising a drilling location
As highlighted above, operational activity by IGas, Cuadrilla,
Third Energy and INEOS Shale will also provide useful information
in relation to the potential for UK shale and could lead to a
re-rating of Egdon's unconventional resource portfolio.
Despite the non-technical challenges, the fundamentals of the
business remain robust as we embark on a period of more active
drilling. The Company remains debt free, holds an asset portfolio
that offers excellent potential for both conventional and
unconventional resources, in a jurisdiction which remains
commercially attractive especially with the improved commodity
price levels. Furthermore, we are well positioned to benefit from
the historic portfolio management as we have successfully mitigated
our risk and cost exposure to enable Egdon exposure to significant
upside catalysts with limited capex requirements.
Egdon will continue to manage its cash resources and risk
exposure through farm-outs and look to dispose of non-core assets
as we continue to focus on fewer projects with higher
potential.
Finally I would like to thank our shareholders for their
patience and the hardworking and professional team at Egdon for the
continuing efforts in what remains a challenging operating
environment.
Philip Stephens
Chairman
17 April 2018
EGDON RESOURCES PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 31 January 2018
Unaudited Unaudited
Six Six Audited
months months Year
ended ended ended
31-Jan-18 31-Jan-17 31-Jul-17
GBP'000 GBP'000 GBP'000
Continuing operations
Revenue 513 505 1,039
------------------------------------ ----------- ----------- -----------
Cost of sales - exploration
costs written off and pre-licence
costs (87) (5) (33)
Cost of sales - impairments
and impairment reversals - - (158)
Cost of sales - other (556) (414) (923)
Cost of sales - depreciation (202) (227) (462)
Total cost of sales (845) (646) (1,576)
Gross loss (332) (141) (537)
Administrative expenses (578) (589) (1,178)
Other operating income 85 19 58
(825) (711) (1,657)
Finance income 4 1 5
Finance costs - unwinding of
decommissioning discount (24) (24) (47)
Loss before taxation (845) (734) (1,699)
Taxation - - -
Loss for the period (845) (734) (1,699)
------------------------------------ ----------- ----------- -----------
Other comprehensive income for - - -
the period
Total comprehensive income for
the period attributable to equity
holders of the parent (845) (734) (1,699)
------------------------------------ ----------- ----------- -----------
Loss per share - note 2
Basic loss per share (0.33)p (0.31)p (0.68)p
Diluted loss per share (0.33)p (0.31)p (0.68)p
------------------------------------ ----------- ----------- -----------
EGDON RESOURCES PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 January 2018
Unaudited Unaudited Audited
31-Jan-18 31-Jan-17 31-Jul-17
Notes GBP'000 GBP'000 GBP'000
Non-current assets
Intangible assets 19,856 18,923 19,231
Property, plant and equipment 9,130 8,536 9,264
------------------------------- ------ ----------- ----------- -----------
Total non-current assets 28,986 27,459 28,495
------------------------------- ------ ----------- ----------- -----------
Current assets
Trade and other receivables 1,808 1,795 1,506
Available for sale financial
assets 50 50 50
Cash and cash equivalents 3 4,095 6,796 6,057
------------------------------- ------ ----------- ----------- -----------
Total current assets 5,953 8,641 7,613
------------------------------- ------ ----------- ----------- -----------
Current liabilities
Trade and other payables (878) (642) (1,216)
Total current liabilities (878) (642) (1,216)
------------------------------- ------ ----------- ----------- -----------
Net current assets 5,075 7,999 6,397
------------------------------- ------ ----------- ----------- -----------
Total assets less current
liabilities 34,061 35,458 34,892
Non-current liabilities
Provisions (2,201) (1,842) (2,187)
------------------------------- ------ ----------- ----------- -----------
Net assets 31,860 33,616 32,705
------------------------------- ------ ----------- ----------- -----------
Equity
Share capital 14,551 14,545 14,551
Share premium 25,202 25,154 25,202
Share based payment reserve 225 224 225
Retained deficit (8,118) (6,307) (7,273)
------------------------------- ------ ----------- ----------- -----------
31,860 33,616 32,705
------------------------------- ------ ----------- ----------- -----------
EGDON RESOURCES PLC
CONSOLIDATED STATEMENT OF CASH FLOWS
For the six months ended 31 January 2018
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
31-Jan-18 31-Jan-17 31-Jul-17
GBP'000 GBP'000 GBP'000
Cash flows from operating
activities
Loss before tax (845) (734) (1,699)
Adjustments for:
Depreciation and impairment
of fixed assets 202 227 464
Exploration costs written
off - 11 177
Foreign exchange loss 3 - 16
(Increase)/decrease in trade
and other receivables (302) 745 1,034
Decrease in trade and other
payables (401) (435) (456)
Finance costs 24 24 47
Finance income (4) (1) (5)
Cash flow used in operations (1,323) (163) (422)
Finance costs - - -
---------------------------------- ------------ ------------ -----------
Net cash flow used in operating
activities (1,323) (163) (422)
---------------------------------- ------------ ------------ -----------
Investing activities
Finance income 4 1 5
Purchase of exploration
and evaluation assets (561) (509) (908)
Purchase of property, plant
and equipment (216) (77) (146)
Partial disposal of licence 137 - -
interest - property, plant
and equipment
Net cash flow used in capital
expenditure and financial
investment (636) (585) (1,049)
---------------------------------- ------------ ------------ -----------
Financing activities
Issue of shares - 5,075 5,075
Costs associated with issue
of shares - (210) (210)
Net cash flow generated
from financing - 4,865 4,865
---------------------------------- ------------ ------------ -----------
Net (decrease)/increase
in cash and cash equivalents (1,959) 4,117 3,394
Cash and cash equivalents
at the start of the period 6,057 2,679 2,679
---------------------------------- ------------ ------------ -----------
Effects of exchange rate
changes on the balance of
cash held in foreign currencies (3) - (16)
---------------------------------- ------------ ------------ -----------
Cash and cash equivalents
at the end of the period 4,095 6,796 6,057
---------------------------------- ------------ ------------ -----------
In the period to 31 January 2017, significant non-cash
transactions comprised the issue of equity share capital with a
market value of GBP50,000 as consideration for the acquisition of
an interest in PEDL201.
EGDON RESOURCES PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 31 January 2018
Share
based
Share Share payment Retained
capital premium reserve earnings Equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance as
at 1 August
2016 14,164 20,620 226 (5,575) 29,435
--------------------- --------- --------- --------- ---------- --------
Total comprehensive
income for
the period - - - (734) (734)
--------------------- --------- --------- --------- ---------- --------
Transfer - - (2) 2 -
--------------------- --------- --------- --------- ---------- --------
Issues of
ordinary shares: 379 4,728 5,107
Costs associated
with share
issues - (210) - - (210)
Share options
exercised 2 16 - - 18
--------------------- --------- --------- --------- ---------- --------
Total issue
of ordinary
shares 381 4,534 - - 4,915
--------------------- --------- --------- --------- ---------- --------
Balance as
at 31 January
2017 14,545 25,154 224 (6,307) 33,616
--------------------- --------- --------- --------- ---------- --------
Total comprehensive
income for
the period - - - (965) (965)
--------------------- --------- --------- --------- ---------- --------
Issue of shares 6 48 - - 54
--------------------- --------- --------- --------- ---------- --------
Transfer - - 1 (1) -
--------------------- --------- --------- --------- ---------- --------
Balance as
at 31 July
2017 14,551 25,202 225 (7,273) 32,705
--------------------- --------- --------- --------- ---------- --------
Total comprehensive
income for
the period - - - (845) (845)
--------------------- --------- --------- --------- ---------- --------
Balance as
at 31 January
2018 14,551 25,202 225 (8,118) 31,860
--------------------- --------- --------- --------- ---------- --------
1. General information
Egdon Resources plc ('the Company' and ultimate parent of the
Group) is a public limited company listed on the AIM market of the
London Stock Exchange plc (AIM) and incorporated in England. The
registered office is The Wheat House, 98 High Street, Odiham,
Hampshire, RG29 1LP.
This interim report was authorised for issue by the Directors on
the 16 April 2018.
Basis of preparation
The financial information set out in this interim report has
been prepared using accounting policies consistent with
International Financial Reporting Standards as adopted for use in
the European Union. IFRS is subject to amendment and interpretation
by the International Accounting Standards Board (IASB) and the IFRS
Interpretations Committee and there is an ongoing process of review
and endorsement by the European Union. The financial information
has been prepared on the basis of IFRS that the Directors expect to
be adopted by the European Union and applicable as at 31 July
2018.
Non-statutory accounts
The financial information set out in this interim report does
not constitute the Group's statutory accounts for that period
within the meaning of Section 434 of the Companies Act 2006. The
statutory accounts for the year ended 31 July 2017 have been
delivered to the Registrar of Companies. The auditors reported on
those accounts; their report was unqualified and did not contain a
statement under either Section 498 (2) or Section 498 (3) of the
Companies Act 2006.
The financial information for the six months ended 31 January
2018 and 31 January 2017 is unaudited.
Accounting policies
The condensed financial statements have been prepared under the
historical cost convention, except for the inclusion of certain
financial instruments at fair value.
The same accounting policies, presentation and methods of
computation are followed in these condensed financial statements as
were applied in preparation of the Group's financial statements for
the year ended 31 July 2017.
2. Loss per share
Unaudited Unaudited Audited
Six months Six months Year ended
ended ended 31-Jul-17
31-Jan-18 31-Jan-17 p
p p
Basic (0.33) (0.31) (0.68)
Diluted (0.33) (0.31) (0.68)
The basic loss per share has been calculated on the loss on
ordinary activities after taxation of GBP0.85m (January 2017
GBP0.73m; July 2017: GBP1.70m) divided by the weighted average
number of ordinary shares in issue of 259,984,822 (January 2017:
237,882,631, July 2017: 248,740,775). The diluted loss per share
has been calculated on the loss on ordinary activities after
taxation of GBP0.85m (January 2017: GBP0.73m; July 2017: GBP1.70m)
divided by the diluted weighted average number of ordinary shares
in issue of 259,984,822 (January 2017: 237,882,631, July 2017:
248,740,775). In all of the reported periods, all share options in
issue were excluded as their inclusion would have been
anti-dilutive.
3. Cash and Cash Equivalents
Unaudited Unaudited Audited
31-Jan-18 31-Jan-17 31-Jul-17
GBP'000 GBP'000 GBP'000
Cash at bank at floating
interest rates 3,554 5,825 5,353
Restricted cash at bank 206 206 206
Non-interest bearing
cash at bank 335 765 498
--------------------- --------------------- -----------
4,095 6,796 6,057
Cash at bank at floating interest rates consisted of money
market deposits which earn interest at rates set in advance for
periods up to three months by reference to Sterling LIBOR.
Restricted cash at bank represents amounts lodged in support of
guarantee commitments, earning interest at short term rates based
on Sterling LIBOR.
4. Post balance sheet events
In March 2018 Egdon announced that it had farmed-out of
interests in PEDL253 to Union Jack Oil plc ("UJO") and Humber Oil
& Gas Limited ("Humber"). Under the agreed terms, UJO and
Humber will each acquire 6% of Egdon's interest in PEDL253 by
paying their pro-rata share of the Biscathorpe-2 well cost plus an
additional GBP10,000 per percentage point interest acquired.
On 3 April 2018, Egdon announced that it had signed a Farm-out
Agreement in respect of a further 5% interest in PEDL253 with
Humber under the same terms as the farm-out previously announced on
5 March and 20 March.
In this release we announced that workovers were completed of
two wells at Fiskerton Airfield in April 2018 with production
having increased to approaching 30 barrels of oil per day from 16
barrels of oil per day and further optimisation, including
increasing pumping rates, will continue over the coming period.
5. Dividend
The Directors do not recommend payment of a dividend.
6. Publication of the Interim Report
This interim report is available on the Company's website
www.egdon-resources.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LLFLRSVIRLIT
(END) Dow Jones Newswires
April 17, 2018 02:00 ET (06:00 GMT)
Egdon Resources (LSE:EDR)
Historical Stock Chart
From Mar 2024 to Apr 2024
Egdon Resources (LSE:EDR)
Historical Stock Chart
From Apr 2023 to Apr 2024
