Egdon Resources#: 2019 Full Year Results
Full Year Results
Egdon Resources (EDR LN)# has reported full year results demonstrating stronger full year earnings on the back of a significant production increase after the Ceres asset was restarted. Average annual production of 182boepd was up 117% YoY resulting in an 81% increase in revenue to £2.2m. Consequently, the gross loss narrowed 30% YoY to (£680k) and with SG&A and finance costs largely flat YoY the net loss improved from £1.98m to £1.67m.
Having raised £2.2m at 5p/sh. earlier this year EDR protected its cash position which will enable the company to advance its conventional exploration and development programmes in the coming year.
Although EDR stands out as one of two UK listed firms with UK shale gas exposure, the company does have an attractive and diversified conventional portfolio which it will focus on in the short to medium term whilst the recently announced moratorium is in place. This includes Wressle where a planning decision is expected in the coming weeks and could add 150bopd to FY 2021 production, based on our estimates. Furthermore, reprocessing of 3D seismic at Biscathorpe has been completed and a technical review is underway to evaluate next steps while the company is also working towards a farmout at North Kelsey.
EDR announced the results of a CPR earlier this year on its Resolution asset, license P1929, in the Southern North Sea earlier this year. The Contingent Resources range from 100-389BCF confirming the significant potential of the reservoir. On the back of this EDR recently announced that it is now in exclusive farm out dRead More – Source