Egdon Resources

LN: EDR

£6.9m market cap

2.1p 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. Production guidance for FY20 remains 130–140boepd as there has been no operational impact from the UK government’s restrictions imposed due to COVID-19. In May, the company announced £403,000 (to be divided between partners) was received from North Lincolnshire Council as settlement of Wressle development application costs.

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 3.2
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 04/06/2020
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 16.7 (42.5) (55.8)
Relative* 5.7 (37.8) (50.3)
52-week high/low 6.1p/1.6p
*% relative to local index
Key management
Philip Stephens Chairman
Mark Abbott MD

Content on Egdon Resources