Industry

Updated: Increased prices and production turn loss to profit for Egdon Resources

The operator of the Wressle oil field in North Lincolnshire reported a 500% increase in oil and gas revenues in its latest interim accounts today.

Wressle well site, January 2021. Photo: Egdon Resources

Egdon Resources said increased production and higher prices resulted in a £1.222m profit for the six months to the end of January 2022, compared with a similar loss for the same period a year before.

Production rose by 116% to 200 barrels of oil equivalent (boe) per day, up from 92 boepd in the same period a year before, the company said. See update note at the end of this article

The Wressle site, still in a test phase, has reached instantaneous flow rates of 1,000 bopd following upgrades to production facilities, Egdon said. This “significantly exceeded” the original estimates of 500 bopd.

Production at Wressle is currently restricted to 760-800bopd by a limit on gas flaring of 10 tonnes a day in the environmental permit. The company said it expected to increase oil production by piping gas into the local grid, rather than burning it. This would need both planning and permit permissions.

Cumulative production at Wressle had exceeded 150,000 barrels of oil since January 2021, with no formation water, the company added.

A revised field development plan was submitted to the regulator, the North Sea Transition Authority, during April 2022.

Egdon’s chairman, Philip Stephens said:

“The period has been an exceptional one for the Company. Revenues have increased fivefold and this has resulted in a return to profit after the challenges of recent years. Significantly increased commodity prices and increased production have made this possible. The Wressle field continues to exceed our expectations.”

Other onshore fields

Egdon said there were prospects for increased oil production at Keddington, Keddington South and Louth, all in Lincolnshire.

Avington, Hampshire: Refusal of permission for reinstated production overturned on appeal. Plans underway for one or more wells.

Dukes Wood: Plans to convert Dukes Wood-1 oil well to geothermal production.

Fiskerton Airfield, Lincolnshire: Production continued but Egdon said the site could be used for disposal of produced water and to generate geothermal water.

Kirkleatham Cleveland: Currently shut in but discussions for a farm-out and sidetrack well to access gas.

Waddock Cross, Dorset: Currently shut in but Egdon said applications were expected by the end of 2022 for permission to drill for oil in 2023.

Licence changes

Egdon also reported it had taken over operation of PEDL343 in North Yorkshire, from Third Energy, and increased its stake to 40%. It has agreed an extension to the exploration phase of the licence to March 2024.

Egdon also said it was increasing its interest in PEDL209 in North Lincolnshire to 100% following the withdrawal of Blackland Park and Stelinmatvic Industries.

It has relinquished its interest in PEDLs 202, 258, 259 and 339.

Key figures

Oil and gas revenue: £2.551m (H1 2021: £0.424m)

Total cost of sales: £0.785m (H1 2021: £0.998m)

Profit before impairments and write backs: £0.715m (H1 2021: loss of £0.763m)

Overall profit: £1.222m (H1 2021: loss of £1.039m)

Admin expenses: £0.477m (H1 2021: £0.469m)

Cash and cash equivalents: £2.084m (H1 2021: £2.422m)

Net current assets at 31 January 2022: £1.165m (31 January 2021: net current liability of £0.126m)

Total current liabilities: £2.307m (H1 2021: £3.267m)

Updated 27/4/22: Egdon corrected the increase in production from 156% to 116% after initially including February 2022 figures in its interim results to January 2022.

9 replies »

  1. Breaking News item: Egdon Resources new money making scheme is to turn their rigs into parachute testing and training sites.

    From now on Egdon Resources, and several others in on the scheme, will be officially referred to as para-sites….

    • Very funny Phil, not so much fun for the people in this country who face an Eat or Heat dilemma.this autumn.

      In amongst Egdon’s announcement was there wish to pipe off their Wressle stranded gas production via a pipe to part of the National Gas grid network which is just 600 yards away. That will require planning permission but if allowed they say they could be inputting gas into the system by the end of this year. Of course the amounts will be miniscule but there you go, every little helps, so I’ve read somewhere.

      By the way in a lighter idle moment I wondered what the Climate Emergency activists were gluing themselves to the road with. If it’s a superglue type substance I wonder what that comes from. Yes you’ve guessed it…..

    • Strange one?

      They all appear to have lost their sense of humour today? Maybe some prefer to jump to conclusions without a parachute? The resulting Wile E Coyote/Easter Bunny vertical descent without a parachute is to plummet somewhat disastrously onto the apocryphal golden goose, with the inevitable terminal consequences? Squawk!

      Perhaps Harvey the Giant Easter Bunny carefully whisked away the usual “contributors” from attempting to address the inconvenient truths? Much as Joe Biden was carefully herded away after mentioning the forbidden subject of Afghanistan.

      Easter Bunny joins President Joe Biden for Easter message

      Joe Biden seen ‘taking orders from a giant bunny’

      It’s good to know that the free, and getting less free and more expensive by the day, world is in such capable hands, isn’t it? Though maybe Harvey the Easter Bunny would be a better choice? Maybe it was the invisible Harvey the Easter Bunny that was shaking hands with Joe Biden the other day?

      However, back in the real world, there is an even more consequential issue to the typical rhetoric that appears to have escaped of even the attention of Harvey the parachuting Easter Bunny. Or more accurately, is entirely avoided by them. Much like the UK and worldwide, 1 in 5 human deaths and the severe health conditions for every living creature on the planet and the destruction of the local and planetary climate due to fossil fuel pollution. Oops! Here comes Harvey again! Pease go over there Joe, nasty inconvenient questions are not to be allowed.

      Strange isn’t it, how suddenly it’s all Cobra tears for those who are not just in energy poverty, but real financial poverty too? What have I been saying for all this time, since all this price hike for oil and gas insanity began? Looks like Harvey the Easter Bunny whisked away those who now want to make a political point from the situation when it was being discussed months ago? Where is that Easter bunny when they need it now? Wasn’t it all Happy chocolate Easter Bunnies when there was no windfall tax from Rishi Sunak and family?

      Hmm, my spell checker wants to change “Rishi Sunak” to “Rich Sunk”! It appears to have a better social conscience and sense of humour than the usual suspects?

      But when it’s the likes of Egdon UKOG, Igas, Ineos and uncle Tom’s Cobblers and all profiting from unearned windfall income from the lowest hanging fruit to the highest? Then what about those who couldn’t afford to feed their children or heat their families homes, let alone buy them chocolate at all? That was strangely silent, wasn’t it? Whisked quickly away for another year. But of course to some, that is merely academic.

      Incidentally, untreated gas cant be introduced into the gas pipe grid. Because it contains a whole lot of contaminated impurities that can’t be burned without contaminating the user of the end product. Fossil fuel gas has to be processed through a treatment plant to remove and extract usable elements and purify the gas end product. Also, mercaptan is added to give the treated purified gas a strong smell like rotten eggs so that an escape can be identified. Natural gas can’t be burned without treatment. Otherwise, it’s poisonous and dangerous to the end user.

      http://naturalgas.org/naturalgas/processing-ng/

      There is the inevitable paradox in this issue, of the present Ukraine/Russia war situation as an example of wrong think and the chicken and egg confusion. IE. What action, or who created the situation in the first place? The incursion or the protest against the incursion? That applies to the fossil fuel operations in much the same fashion as the situation of the war in Ukraine.

      Its the solely primary incursion progenitor, of course, that creates the situation and the resultant consequences of all concerned. Not the subsequent inevitable reaction to the primary incursion progenitor. That is very clear and irrefutable.

      Its the same paradox that illustrates the situation for all the onshore fossil fuel operations by various corporations in Great Britain and elsewhere against the will and contrary to the permission of the local residents. Who, it may be said, in the case of the fossil fuel corporations incursions into local residencies, the locals were never given the opportunity to present their objections against the fossil fuel operations incursions before it was imposed upon them by government and the fossil fuel industry. They just arrived without notification or warning.

      The parallel is no more blatantly illustrative than the present war in Ukraine and the invasion of Russia into Ukraine for whatever purpose. That alone illustrates that it’s not the fault of those who, like the Ukrainians, object to, and fight for their independence against the Russian invasion. But Vladimir Putin, and the Russians themselves. Not the people of Ukraine reactions to the incursions.

      The fault lies in the Russians being there in the first place against the expressed will and permission of the Ukrainians. The blame being, not, the reaction to the invasions of the Russians, but the invasion of the Russians in the first place. That is what illustrates without a shadow of doubt what the reaction is to the unwanted presence, and the resultant profiteering of the fossil fuel corporations off oil and gas price hikes worldwide.

      That is what blatantly illustrates the uncomfortable and inconvenient parallel to such as Egdon, UKOG, Igas, Ineos and whoever else is involved in the unwelcome incursions into the local rural areas. Not the reaction to them at all. No matter how much, they appear to be reversing (if not crashing) gears to newly revelatory road to “renewable” changes of heart.

      Maybe Russia will suddenly declare they are only in Ukraine to set up hydrogen production from fossil fuels, or to explore Ukraine for geothermal generation?) Would that make it all OK, judging from past evidence?

      Continued next post:

  2. Hmmm.

    Wonder who cost the local community £400k for no benefit, and now Egdon will proceed to pay some of it back, over time.

    Obviously some guilt there about parasites. Parasites, organisms that drain the host (locality) of resource with no intention of putting anything back. It looks pretty clear who fits the bill, and who pays the bill. Not even an attempt at crowd funding, just off to try and rinse-another locality-and repeat the process.

    Vote in strong councillors-like Ivor Mectin.

    • Continued from previous post:

      Hmm. Now some like to dredge up a similar hypocritical example of the cost that was levied onto local councils and onto the local taxpayer by the police in Lancashire who used unnecessary force from 20 van loads of scores of police who were intent upon intimidation and violent arrests of anyone who was present at any protest. There were completely unfounded and fabricated reasons for arrests. Which, were dismissed afterwards without charge. That is clear intimidation tactics, nothing more.

      The purpose of the totally over the top hired police presence and private security forces, was to prevent peaceful Human rights of speech and protest and to arrest and intimidate no more than a dozen or so elderly and disabled protestors. Whose only reason for being there at all, was to protest against the perceived unwelcomed invasion into their location by the fossil fuel corporations. That was carried out in completely legal peaceful protest upholding their Human Rights of Freedom of Speech and Protest which are still enshrined in law and the Human Rights Act. In spite of attempts by this government and the police to interfere with those Inalienable Human Rights by subsequent legislation such as:

      The Police, Crime, Sentencing and Courts Bill (Last updated: 26 April 2022 at 19:12).
      https://bills.parliament.uk/bills/2839

      And Human Rights Act Reform: A Modern Bill of Rights (Last updated on 7 March 2022)
      https://www.gov.uk/government/consultations/human-rights-act-reform-a-modern-bill-of-rights

      There is also The Online Safety Bill (Last updated: 20 April 2022 at 14:11) that will have similar effects on protest in the future:
      https://bills.parliament.uk/bills/3137

      The people of Ukraine were given no such consideration, of course, and yet the effects are the same. That of crushing dissent and then charging the whole world by creating massive price hikes for oil and gas for doing so.

      If you wish to enumerate the comparative costs worldwide due to supporting Ukraine in their fight against Russia, (which incidentally, is contrary to the previous intent to merely create sanctions against Russia, which actually had the entirely opposite effect at great cost to the taxpayer worldwide) then you can easily refer to the costs around the world for supporting the protests and fighting in Ukraine by the western governments. Present figures today are as follows:

      USA: $13.6 Billion.
      UK: £220 million.
      EU: €143 million
      (You can find the links to those figures yourselves.)

      The result of those aspects of whom, or what, created the situation in Ukraine in the first place. That can only be compared to the financial and social and legal aspects of the effects from fossil fuel operations in Great Britain. The peaceful protests by people in Great Britain who don’t want their environment and local ecology destroyed by fossil fuel operations and the deaths and health issues from fossil fuel pollution. And that goes not just in their local environment, but the long term effects worldwide are only too evidential by recent climate destruction due to fossil fuel pollution worldwide. Especially when it was predicted all too accurately by Exxon and Shell scientists back in the late 1970’s.

      Continued next post:

      • Continued from previous post:

        Therefore, by condemning protests in Great Britain against fossil fuel operations invading their environment and destroying their local ecology, is clearly paralleled and illustrated by comparison to the invasion of Ukraine by Russia and the peoples fight to protect and preserve their very lives and way of life. Then you condemn those people in Ukraine too.

        Peaceful protest has been carried out at the people’s own expense and time and effort in just displaying what and why they object to their locality, and the worldwide effects from fossil fuel exploitation operations. No profit, or “parasitic” effects were, or are, gained from any such Human Rights of freedom of speech and protest. The history of protests, going back to the suffragettes’ movement in support of women’s rights to vote and the attempts to abolish slavery in Great Britain, have never been for profit or gain in anything else but the freedom of Human Rights. The profiteers however, and the paid police violence, were the ones who attempted to prevent those Human Rights and profiteered enormously from having those Human Rights suppressed and destroyed. That is no different to the fossil fuel corporation lobbying of government and attempts to make the legal right of protest a criminal offence by injunctions against protest against fossil fuel operations in particular. The thin end of the fossil fuel wedge, so to speak. The illustrative comparisons between profit motive and the freedom of the Human rights of protest and freedom of speech are irrefutable and historically and presently extremely apt.

        Comparison in the issue of protest only serves to show that profit was made by the police at the expense of the council and the local taxpayers. Not the protectors. Therefore, if anyone wishes to misrepresent the word para-site, as “parasite” (yet another sensitive word obsession perhaps?) from anything I said in humour to lighten the mood.

        Then the word can only be applied to those who seek to profit from protest and the price hike on oil and gas that has been similarly levied against the entire world in the form of the war in Ukraine.

        Which only serves to demonstrate, (to coin an appropriate word), that it all comes down to that ancient well oiled question:

        Cui bono? Who benefits? Maybe the giant Easter Bunny knows? Certainly not those trapped by energy price hikes who are in energy and financial poverty and whom the government not only totally ignored but gave tax concessions and fossil fuel subsidies to the fossil fuel industry rather than sharing the windfall millions to those who really need the money. Not the millionaire energy company CEO’s and the carefully concealed convoluted tax haven shell company trusts?

        It’s not such a funny old world any more for those who not in the Big Exclusive Club, is it? The really hilarious thing is, though, some apparently speak and act as if they were in the Big Exclusive Club? I wonder if they know just how they are perceived by those who do run the Big, Exclusive club? Laugh all the way to the banks, perhaps?

        Have a nice day.

  3. [Edited by moderator]

    The bit around local ecology is interesting, but not supported by fact. UK on shore oil and gas have a pretty good record in that respect, much better than some overseas suppliers, (good reason to transfer production to UK!) and in certain areas where UK on shore ecology and oil extraction have mixed then the damage to the ecology, repeatedly, has come from visitors into the areas who are not associated with extraction who decide it is a good idea to light fires, and now barbecues, or leave broken glass that then produce fires. According to Ruth, butterflies and buzzards are flitting around UK oil exploration sites- although I wonder how they would fare if disturbed by noisy protestors. Obviously Priti has a pretty good idea, so is looking to help out the butterflies and buzzards.

    Maybe the word “profit”, has caused an overload.

    However, I note UK is looking towards an interconnector now from Morocco! That should be good-not. Anyone yet managed to get the local ones to work efficiently?

  4. Evidence that oil & gas improves biodiversity? Presumably based on the ecological assessments commissioned by the companies themselves or just wishful thinking on the part of those who support the industry? But local people know what wildlife is around and consequently also know that it is routinely dismissed/overlooked in these reports. Sadly, regulatory bodies are underfunded and under-resourced so they often don’t engage with the planning system to challenge such reports. Massive loss of biodiversity over recent decades would suggest we’re NOT getting it right …..scientific evidence does point to it being connected to climate change caused by fossil fuels.

  5. Alex, I agree that biodiversity is not ideally managed in a lot of situations. I recall those poor owls being harassed by groups prancing about dressed as owls.

    Perhaps there is need for more fossil fueled kit to enable the agencies to do their jobs more efficiently?

    Maybe if places like India had more fossil fuel then forests would not have been decimated to obtain firewood and displace the tigers? I hate to think what bamboo pants are doing to the panda!

    Maybe if more fertilizer was locally available, produced from fossil fuel, less land would be taken/needed for food production, and high yields on a reduced land area could be achieved? Then, maybe grain grown for ethanol that is now suggested as no better than fossil fuel production, could be excluded, making food bills lower, running a car cheaper, and leaving more space for more biodiversity. Perhaps stop mincing birds with wind turbines and covering good agricultural land with solar panels?

    And do not get me started on that classic regarding biodiversity-wood pellets! (LOL)

    But, it seems possible to become the world’s richest man when a forest in Germany is decimated to produce a factory to feed the EV market, starting it before the agencies have cleared it.

    For a relatively young business sector, there seem to be a lot of lessons that have not been learned by the renewable sector in regard to many things, including biodiversity.

Add a comment

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s