26 May 2022

EGDON RESOURCES PLC

("Egdon" or "the Company")

Quarterly Financial Update and Loan Repayment

Egdon Resources plc (AIM:EDR) a UK focused energy company, is pleased to provide an unaudited financial update for the third quarter of the Company's financial year (February to April 2022) and to advise the repayment of a £1 million loan.

Revenues

·      Revenue for the three-month period from February to April 2022 was £2.23 million (2021: £0.31 million and H1 2022: £2.55million).

·      Revenue was primarily from the Wressle and Ceres fields, with average realised oil prices during the period February to April 2022 of $106.67 per barrel of oil ("bbl") (February to April 2021: $62.43/bbl) and averaged realised gas prices of 217p per therm ($149 per barrel of oil equivalent ("boe") (February to April 2021: 45p/therm ($44/boe)).

Loan Repayment

·      On 25 May 2022 the £1 million commercial loan facility (the "Loan") was repaid to Union Jack Oil PLC along with accrued interest as per the agreed terms. 

Wressle Deferred Consideration

·      As advised in the Company's interim results (26 April 2022), during March 2022, Egdon paid the £0.417 million deferred cash consideration for the additional 5% interest in PEDL180 and PEDL182 (Wressle) which was acquired from Celtique Energie Petroleum Limited during June 2018.

Net Current Assets

·      Accounting for repayment of the Loan, on 1 May 2022 the Company held unaudited cash and cash equivalents of £2.73 million (31 January 2022: £2.08 million) and net current assets of £2.76 million (31 January 2022: £1.16 million).

Commenting, Mark Abbott, Managing Director of Egdon Resources plc, said:

"I am pleased to report that continuing strong production from Wressle and Ceres coupled with high oil and gas prices have translated into a robust year to date financial performance for Egdon.  The material cash flow generated has been transformational, enabling the Company to become debt free and funded for all near-term commitments in parallel with considering further growth opportunities."

For further information please contact: 

Egdon Resources plc

Mark Abbott, Martin Durham                                                                           01256 702 292

Buchanan

Ben Romney, Jon Krinks                                                                                 020 7466 5000

Nominated Adviser & Joint Broker - WH Ireland Limited                      

Chris Hardie, Megan Liddell                                                                            020 7220 1666

Joint Broker & Financial Advisors - VSA Capital Limited

Andrew Monk (Corporate Broking)                                                               020 3005 5000

Andrew Raca (Corporate Finance)

About Egdon

Egdon Resources plc (LSE: EDR) is an established UK-based energy company focused on onshore exploration and production in the UK. 

Egdon holds interests in 37 licences in the UK and has an active programme of exploration, appraisal and development within its portfolio of oil and gas assets. Egdon is an approved operator in the UK.  Egdon was formed in 1997 and listed on AIM in December 2004.

Qualified Person Review

In accordance with the AIM Rules - Note for Mining and Oil and Gas Companies, this release has been reviewed by Mark Abbott, Managing Director of Egdon, who is a geoscientist with over 30 years' experience and is a member of the Petroleum Exploration Society of Great Britain and a Fellow of the Geological Society.  Mr Abbott has consented to the inclusion of the technical information in this release in the form and context in which it appears.

This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.