Egdon Resources

LN: EDR

£16.2m market cap

5.35p 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 has announced a proposed underwritten open offer of c 43.3m shares (representing 14.29% of the enlarged share capital) at 5p/share to raise £2.17m before expenses. Under the open offer, qualifying shareholders have an opportunity to subscribe to one open offer share for every six existing ordinary shares held at market close on 14 May 2019. Net proceeds will be used to progress Egdon’s Gainsborough Trough shale-gas assets and the Resolution gas discovery (the focus of our last note), and for general working capital purposes. Egdon’s key operational focus is on finalising IGas-operated Springs Road-1 core and log analysis in Q219 and seeking an industry partner to fund the planned 3D seismic and appraisal drilling of the Resolution gas discovery.

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 23.5
Last updated on 17/05/2019
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 17/05/2019
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 (7.9) (29.4) (37.9)
Relative* (6.4) (30.7) (34.0)
52-week high/low 12.3p/5.0p
*% relative to local index
Key management
Philip Stephens Chairman
Mark Abbott MD

Content on Egdon Resources