Egdon Resources

LN: EDR

£13.4m market cap

4.4p 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 as well as the Wressle development (subject to planning consent). The company is focusing on concluding the farm-down of the Resolution/Endeavour projects with its exclusivity partner and finalising the forward plan for Biscathorpe and advance a farm-down of the North Kelsey-1 exploration well. Subject to lifting of the moratorium recently announced by the UK government in November 2019 regarding hydraulic fracturing, Egdon intends to progress the drilling and testing of the Springs Road-2 well. The company also announced its FY19 results and we are currently updating our valuation.

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 (1.6) (0.8) N/A 6.8
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 16/01/2020
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 49.2 (28.2) (42.3)
Relative* 44.1 (32.5) (48.5)
52-week high/low 8.2p/2.5p
*% relative to local index
Key management
Philip Stephens Chairman
Mark Abbott MD

Content on Egdon Resources