Egdon Resources' 2009-10 results were disappointing even though oil production rose 15 per cent to 27,000 barrels of oil from three UK onshore wells while a buoyant oil price pushed up revenues 42 per cent. The company reckons that extensive downtime on the Ceres gas field (where it owns a 10 per cent stake) in the southern North Sea lost it £750,000 of extra income last year.
As part of "an active year on the corporate front", Egdon acquired the stake in Ceres and a package on onshore assets from Encore in July and for a near 30 per cent share stake. It is also an active trader and in the year sold minority interests in four East Midlands' licences. They contributed a £389,000 exceptional gain to last year's results - followed by last month's sale for £4.5m cash of two early-stage French exploration licences.
Together with April's £2m placing at 12.5p, Egdon is well financed and can now put more money into exploration. But it's also downplaying potential output if more goes right in 2010-11. During 2009-10 output averaged just 74 barrels of oil equivalent per day (boepd). Already the figure is up to 170 boepd thanks to a successful well at 75 per cent-owned Keddingtom in Lincolnshire and broker Seymour Pierce's target is 1,000 boepd by 2012.
EGDON RESOURCES (EDR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 12.5p | MARKET VALUE: | £16.3m | |
| TOUCH: | 12-13p | 12-MONTH HIGH: | 17.75p | LOW: 11.5p |
| DIVIDEND YIELD: | nil | PE RATIO: | 43 | |
| NET ASSET VALUE: | 12p* | NET CASH: | £2.10m | |
| Year to 31 Jul | Turnover (£000) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2006 | 14 | -0.52 | -0.94 | nil |
| 2007 | 41 | -0.36 | -0.57 | nil |
| 2008 | 1121 | -2.38 | -3.52 | nil |
| 2009 | 880 | -0.08 | -0.12 | nil |
| 2010 | 1252 | 0.24 | 0.29 | nil |
| % change | +42 | - | - | - |
Aim: Oil & gas exploration & production. *Includes intangible assets of £7.03m, or 5p a share | ||||
