Egdon Resources

LN: EDR

£11.5m market cap

3.8p 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 retains several value catalysts that encompass both its conventional and unconventional assets and include exploration and appraisal. The company started the year with two important developments. The first was the announcement of the positive result of Egdon’s appeal against the refusal of planning consent at the Wressle oil field, which will allow the company to proceed with project development. The second was the farm-in agreement for the P1929 and P2304 licences with Shell. In November 2019, Egdon announced it had signed an exclusivity agreement for the licences that contain the Resolution and Endeavour gas discoveries. The farm-down to Shell will allow Egdon to retain 30% working interest in the licences and proceed with a 3D seismic survey planned for 2020. Our updated RENAV currently stands at 13.2p/share.

Y/E Jul
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2018A 1.2 (2.2) (2.0) (0.8) N/A N/A
2019A 2.2 (0.6) (1.7) (0.2) N/A N/A
2020E 1.9 (0.6) (0.9) (0.8) N/A N/A
2021E 4.1 1.5 (1.5) (0.8) N/A 5.9
Industry outlook

The UK government’s stance towards shale varies by party. Current central government believes natural gas will play an important role in providing energy to the UK in the future.

Last updated on 18/02/2020
Sector
Oil & gas
Share price graph
Balance sheet
Forecast net cash (£m) 0.1
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (27.6) 16.9 (50.2)
Relative* (25.2) 14.6 (52.2)
52-week high/low 7.9p/2.5p
*% relative to local index
Key management
Philip Stephens Chairman
Mark Abbott MD

Content on Egdon Resources