Egdon records further rise in revenue

Egdon Resources plc recorded a further increase in revenue and progress across all its offshore and onshore oil and gas assets in the United Kingdom.

FINANCES

The company’s general meeting business report showed unaudited revenue for the five-month period from August to December 2022 of £3.08 million (2021: £2.07m).

STAND-OUT ASSET

At the Wressle joint venture (30%) within licences PEDL180 and PEDL182, the company as operator produced cumulative oil production of more than 341,100 barrels to 12 January 2023, with no water.

Managing director Mark Abbott described Wressle as the “standout asset, performing ahead of expectations”.

Current daily production rate is 825-850 bopd, although a daily rate of in excess of 1,000 bopd was achieved in late December 2022, following a four day shut-down.

Installation and commissioning continues for three microturbines which will generate all site electricity and are expected to enable up to a 20% increase in oil production.

Egdon is completing a 3D seismic reprocessing and finalising new field interpretation to confirm final target locations for future appraisal and development drilling.

The company plans to commission a new competent persons report incorporating the new field interpretation and production performance.

Planning and permitting process for Penistone Flags development has started with drilling planned for H2 2023, subject to regulatory approvals.

Egdon is also progressing gas to wire, and gas export options to generate further revenue streams and to eliminate gas incineration at Wressle.

OTHER ONSHORE ASSETS

Egdon also gave progress details of its other onshore assets including Keddington in the East Lindsey district of Lincolnshire, where the reprocessing of existing 3D seismic data is being finalised to inform final sub-surface location for a side-track well targeting 60,000 barrels of incremental oil production

Approved planning and permits will enable drilling during H2 2023.

Operator Island Gas plc (IGas) plans to restart production during H1 2023 at Avington in Hampshire. Egdon said it would increase its interest in the field to 36.33% on completion of the acquisition of Aurora Production Ltd.

Egdon will also increase its interest in the field to 73.75% on completion of the acquisition of Aurora at Waddock Cross in Dorset, which is due to undergo a planned redevelopment.

The company added it was progressing planning and permitting to secure consents for drilling during H1 2024.

The company is awaiting a decision from the inspector following a planning appeal hearing in October 2022 for its Biscathorpe asset in PEDL253 (35.8%). If successful, drilling is targeted for H2 2023.

At North Kelsey PEDL241 (50%) in the West Lindsey district of Lincolnshire, Egdon expects its planning appeal to be heard as a hearing with a date yet to be set.

OFFSHORE

Shell has completed its withdrawal from the P1929 licence Resolution and Egdon is now operator with a 100% interest.

P2034 (Endeavour) was surrendered in November 2022.

CAMPAIGN

“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,”added Mr Abbott.