Egdon Resources

LN: EDR

£6.2m market cap

1.9p 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. 2020 started with two important developments: the positive result of Egdon’s appeal against the refusal of planning consent at Wressle, which will allow it to proceed with project development; and the farm-in agreement for the P1929 and P2304 licences with Shell. The cash position at 31 January 2020 was £0.78m and Egdon recently raised £500,000 in equity, before expenses, to be used to progress near-term cash-generative projects such as Wressle and general working capital. The company recently announced the Oil & Gas Authority has agreed to extend the licence terms and amend the work obligations for both P1929 and P2304 Licences, with the initial term of the licences extended to 31 May 2024; subject to acquiring 400 km2 of 3D seismic by 31 May 2021, and to drill one well to a depth of 1,700m, or 75m below the Base Permian Unconformity by 30 November 2022.

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 2.9
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 07/08/2020
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 (13.6) 11.8 (63.1)
Relative* (12.0) 8.6 (56.9)
52-week high/low 6.1p/1.6p
*% relative to local index
Key management
Philip Stephens Chairman
Mark Abbott MD

Content on Egdon Resources