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Sparks Team
17 April 2018 · 2 min read

Egdon Resources (EDR); interim results: operating loss widens amid lower-than-expected production

Stock down 1.69% to 5.80p 8:00

Oil and gas revenues remained flat at £0.51m for the six months ended 31 January 2018. Loss for the period rose to £0.85m from £0.73m last year.

Oil production from Ceres, Keddington, Avington and Fiskerton Airfield was 98 boepd, less than the company’s guidance of 100-110 boepd. This was mainly due to pump failure and subsequent weather-related delays in completion of the workovers at Fiskerton Airfield and production shut-in at Avington from January 2018. However, the company has confirmed full year guidance at 100-110 boepd, as the production in Fiskerton airfield has improved after workovers. Further, EDR expects the production to boost to 145 boepd, driven by restoration of Ceres field and successful development of new Wressle field.

Philip Stephens, Chairman of EDR, said: “After a busy and productive six months, we are confident that we will make further progress in the second half of the year, especially on two important fronts. Firstly, after many setbacks, we hope to be successful in gaining planning permission in order to allow us to develop our conventional oil discovery at Wressle. Secondly, we await the drilling of the first well at Springs Road where we have a carried interest in this significant unconventional prospect in the Gainsborough Trough. Success in these prospects will significantly enhance our future.”

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