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, where site reconfiguration works have commenced, and general working capital. Following on from the recent extension of the licence term for both the P1929 and P2304 licences to 31 May 2024, the Shell farm-in to these licences has also now been completed. In addition, permission to drill a well in North Kelsey has been extended to 2021, while settlement proceeds have been received from PEDL253 JV partner, Humber Oil & Gas.
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.
