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.

WRESSLE

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).

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

Managing director Mark Abbott described the project 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.

A new competent persons report due to be commissioned will incorporate 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 approvals.

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

OTHER ASSETS

The company has also advanced its other onshore assets including Keddington in the East Lindsey district of Lincolnshire.

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 is progressing planning and permitting for during H1 2024.

A decision is awaited 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 on a date yet to be set.

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

P2034 (Endeavour) was surrendered in November 2022.

“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.