Revenue
TheCompany's revenue continue to be strong with unaudited revenue for the five-monthperiod from August to December 2022 of £3.08 million (2021: £2.07 million).
Operations
Progress is being made across Egdon's entire portfolioof assets, highlights include:
Wressle
· Cumulative oilproduction of more than 341,100 barrels to 12 January 2023, with no water
· Current daily production rate of approximately 825-850 barrels of oil perday ("bopd"), however, a daily rate of in excess of 1,000 bopd was achieved inlate December 2022, following a four day shut-down
· Threemicroturbines have been delivered to site and installation and commissioning isongoing
· Themicroturbines will generate all site electricity and are expected to enable upto a 20% uplift in oil production
· 3D seismicreprocessing completed and new field interpretation being finalised to confirmfinal target locations for future appraisal and development drilling
· New CompetentPersons Report to be commissioned incorporating the new field interpretationand exceptional production performance
· Planning andpermitting process for Penistone Flags development has commenced
· Drilling of a PenistoneFlags development well is planned for H2 2023, subject to receipt of regulatoryand planning consents
· Progressinggas to wire, and gas export options to generate further revenue streams and to eliminategas incineration at Wressle
Keddington
· Reprocessingof existing 3D seismic data currently being finalised to inform finalsub-surface location for a side-track well to target around 160,000 barrels ofincremental oil production
· Planningconsent and permits in place to enable drilling during H2 2023
Avington
· All planningconditions have been discharged and the operator is planning to restartproduction during H1 2023
· Egdon willincrease its interest in the field to 36.33% on completion of the acquisitionof Aurora Production Limited
Waddock Cross
· Egdon willincrease its interest in the field to 73.75% on completion of the acquisitionof Aurora Production Limited
· Plannedredevelopment of the Waddock Cross oil field
· The Company isprogressing planning and permitting to secure consents for drilling with thetarget of H1 2024
Biscathorpe
· A PlanningHearing was held on 11 October 2022 and the Inspector's decision is awaited
· Preparationsfor drilling in H2 2023 would follow from a successful planning appeal
North Kelsey
· Egdonsubmitted a planning appeal in August 2022 and we have been informed that theappeal will be held as a Hearing with the detailed timing awaited from thePlanning Inspectorate
Resolution and Endeavour (P1929 and P2304)
· Shell hascompleted its withdrawal from the P1929 licence and Egdon is now operator witha 100% interest
· P2034(Endeavour) was surrendered in November 2022
· The nearby,analogous Pensacola Prospect has discovered gas and a testing programme isunderway
UpdatedCorporate Presentation
An updated corporatepresentation, including updates as detailed above, will be made following theAGM and will be available on the Company's website at www.egdon-resources.com
Mark Abbott, Managing Director of Egdon,commented:
"Egdon continues to generate strong revenuesfrom its UK producing assets with Wressle being the standout asset, performing aheadof expectations. We anticipate a further uplift in production at Wressle in thenear future once the microturbines are fully commissioned and operational. Weare actively progressing planning and permitting for the development of the PenistoneFlags reservoir, which along with the associated gas to grid project willresult in a further material uplift in production and revenues.
Elsewhere,we are progressing our plans for a drilling campaign during the next 12 to 24months designed to further increase our production and revenue and funded fromthe material cash flow being generated from our existing production."
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Egdon Resources plc published this content on 16 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 January 2023 16:29:03 UTC.