Egdon Resources - Deferred Ceres output offset by higher gas prices
Egdon’s operational update highlights lower production for FY18 at 84boed versus guidance of 100boed as a result of unplanned downtime at Ceres. Management remains confident in future production expectations and potential for increased gas recovery at Ceres based on pressure build-up analysis during shutdown. Our conventional asset RENAV moves to 12.5p/share from 12.8p/share (-2%) as a result of lower FY18 production and a higher risking applied to Wressle, offset by an increase in our short-term EIA-based oil price forecasts and higher NBP gas price assumptions. The valuation of Egdon’s net shale resource (205,000 net acres) remains uncertain but in our view has the potential to be worth over risked 100p/share based on current expectations of well cost, type curves and forward gas prices.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.
Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.
.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.