Outlook: UK shale, beyond the planning stage in 2016
Egdon looks set to benefit from UK shale moving beyond the planning stage in 2016 as two well-funded, experienced UK operators, Cuadrilla and Third Energy, expect favourable planning decisions in the first quarter of 2016. With 140,000 acres in key shale sweet spots, Egdon’s strategy of non-operated exposure to UK shale looks set to benefit shareholders. The group’s conventional upstream business enters a busy period towards the end of 2015 with three exploration wells scheduled for drilling worth an estimated 78p/share (success case) to the company. We see the current share price as an opportunity, being within reach of our core NAV of 8.6p/share, with further upside to our RENAV of 29.6p/share.Egdon Resources is an onshore U.K. focused oil and gas exploration and production business. As of Jul 31 2017, Co. had net proven plus probable oil reserves of 0.6 million barrels and net proven plus probable gas reserves of 1.18 billion cubic feet.
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