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<p>Planning complications at Wressle are a setback for Egdon, affecting short-term production expectations. We expect Egdon to return with revised planning documentation to address local council planning concerns over the next couple of months; nevertheless, we expect Wressle first oil to be pushed back by up to 12 months. Our production expectation for FY17 has been reduced from 165boe/d to 110boe/d as a result. Our updated core 2P NAV (including cash and net of G&A) falls from 3.7p/share to 3.1p/share. However, our contingent resource and risked exploration valuation is little changed at 17.8p/share (from 18.5p/share). We include an indicative value per acre-based 25.7p/share valuation for shale acreage. </p>

Planning complications at Wressle are a setback for Egdon, affecting short-term production expectations. We expect Egdon to return with revised planning documentation to address local council planning concerns over the next couple of months; nevertheless, we expect Wressle first oil to be pushed back by up to 12 months. Our production expectation for FY17 has been reduced from 165boe/d to 110boe/d as a result. Our updated core 2P NAV (including cash and net of G&A) falls from 3.7p/share to 3.1p/share. However, our contingent resource and risked exploration valuation is little changed at 17.8p/share (from 18.5p/share). We include an indicative value per acre-based 25.7p/share valuation for shale acreage. 

<p>Post the fund-raise, Egdon has zero debt and cash of c &pound;7.0m, making it the largest unlevered UK-listed shale play. Licences span over 200,000 net acres with an ERCE estimated undiscovered gas initially in place (GIIP Pmean) of 48tcf. Our valuation is adjusted for placing proceeds and associated NAV/share dilution; this is offset by inclusion of 14th round licence awards. Our valuation is broken down in to 3.7p/share for core 2P value (including cash and net of G&amp;A) and 18.5p/share for contingent resource and risked exploration. We also include an indicative dollars per acre shale valuation of 25.7p/share.</p>

Post the fund-raise, Egdon has zero debt and cash of c &pound;7.0m, making it the largest unlevered UK-listed shale play. Licences span over 200,000 net acres with an ERCE estimated undiscovered gas initially in place (GIIP Pmean) of 48tcf. Our valuation is adjusted for placing proceeds and associated NAV/share dilution; this is offset by inclusion of 14th round licence awards. Our valuation is broken down in to 3.7p/share for core 2P value (including cash and net of G&amp;A) and 18.5p/share for contingent resource and risked exploration. We also include an indicative dollars per acre shale valuation of 25.7p/share.

United Kingdom

Egdon Resources PLC is an oil and gas exploration and production company.  The Group owns acreage in the United Kingdom and France.

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Egdon Resources PLC (EDR LN)

Wrestling with Wressle

Planning complications at Wressle are a setback for Egdon, affecting short-term production expectations. We expect Egdon to return with revised...

Edison Investment Research

Unlevered UK shale play

Post the fund-raise, Egdon has zero debt and cash of c £7.0m, making it the largest unlevered UK-listed shale play. Licences span over 200,000 net...

Edison Investment Research

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