Egdon Resources

LN: EDR

£15.2m market cap

5p last close

Egdon Resources is an AIM-listed onshore oil and gas exploration company. The group has conventional and unconventional assets in the UK.

Investment summary

Egdon Resources and IGas Energy provided further details on the results from the Springs Road-1 core analysis. The analysis suggests that key characteristics of the Bowland Shale in the Springs Road-1 well compare to commercial shale operations in North America. The core results indicate a mature, organic content-rich source rock with good porosity confirming favourable gas resource density. The low clay content in the Lower Bowland Shale at c 22% is encouraging and an indication that hydraulic fracturing of the rock should be effective. Partners are encouraged by the results from Springs Road-1, particularly by the combined Bowland shale gas in place of 640bcf/square mile – the resource density – over three times previous external estimates. The joint venture will continue working on the basin model to better delineate the resource potential and refine the appraisal programme. Design and planning work for Springs Road-2 is now underway.

Y/E Jul
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2017A 1.0 (1.2) (2.2) (0.7) N/A N/A
2018A 0.8 (2.2) (1.7) (0.8) N/A N/A
2019E 2.2 (0.5) (2.1) (0.2) N/A N/A
2020E 2.7 0.1 (1.8) (0.8) N/A 22.0
Last updated on 12/09/2019
Industry outlook

The UK government’s stance towards shale varies by party. However, current central government appears to be supportive of unconventional gas development, attracting sector investment from the likes of Centrica and Ineos.

Last updated on 12/09/2019
Sector
Oil & gas
Share price graph
Balance sheet
Forecast net cash (£m) 0.6
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 2.0 5.3 (31.8)
Relative* (0.2) 5.0 (31.7)
52-week high/low 9.0p/4.0p
*% relative to local index
Key management
Philip Stephens Chairman
Mark Abbott MD

Content on Egdon Resources