Egdon Resources plc reported revenues more than halved and losses widened in its results published today for the year ended 31 July 2020.
The company also announced that the 3D seismic survey over its offshore gas discoveries has been deferred until February 2022 following a revised environmental impact assessment.
In its financial report, gross oil and gas revenues fell by 56% to £960,000 compared with £2.20 million for 2019, while losses were £4.75 million after write-downs, pre-licence costs and impairments of £3.03m (2019: £1.72m).
Production for the year fell to 145 boepd (2019: 182 boepd) but was ahead of 130-140 boepd guidance.
Egdon said it had £0.85m cash at 31 July 2020 (2019: £1.62m) and net assets of £26.67m (2019: £30.99m). The company raised £500,000 after an equity placing during April 2020.
Net current liabilities were £0.33 million for the year ended 31 July 2020 (2019: £1.91 million).
Egdon has interests in onshore hydrocarbons at Wressle, Biscathorpe and North Kelsey, shale gas from the Gainsborough Trough and offshore Resolution and Endeavour gas fields.
The company said it planned to streamline its portfolio to concentrate on a smaller number of key assets while maintaining its position in core unconventional assets. It would also look at options to produce geothermal energy from its existing wells.
Egdon’s outlook for the coming year includes finalising the development of Wressle oil field ahead of production during January 2021, which the company says would add 150 bopd.
It will also pursue its planning application for a Biscathorpe-2 side-track well (PEDL253), to be drilled this year, and look at the potential for a partial farm-out. Egdon will also progress with a farm-out of North Kelsey-1 for drilling in 2021
The company’s shale gas plans remain with drilling and testing the IGas-operated Springs Road-2 well in the Gainsborough Trough at Misson, North Nottinghamshire, if the Government’s moratorium on hydraulic fracturing is lifted. bit.ly/3bdIp3T
The delay of the 3D seismic of Resolution and Endeavour gas discoveries (P1929 and P2304), operated by Shell Oil UK Ltd, was due to the potential impact on local fishing businesses, potential movements of marine mammals, the breeding season for sea birds, and on tourism. Egdon added that the best time to gather seismic data in 2021 was during February, not March/April as originally planned, which has left the company with insufficient time to obtain all required agreements.