Egdon Resources increased oil production by 27% in the second half of 2022, thanks to the Wressle field in North Lincolnshire.

In interim accounts for the six months to 31 January 2023, the company said production rose to 46,465 boe (barrels of oil equivalent). This was up from 36,714 boe in the first half of 2022.

In recent months, the only other producing field operated by Egdon was at Keddington.

The latest official data, for January 2023, showed that 100% of Egdon oil came from Wressle. More details

Egdon said the Wressle field had total cumulative production of 357,838 barrels, up to 31 January 2023.

Production rates at the field averaged 770 bopd (barrels of oil per day) during March 2023, the company said. It added that the connection of three microturbines in January and February 2023 had increased production by 10%.

The company now estimates its total production rate for the full financial year will be 240-250 boepd (barrels of oil equivalent per day). This is up from the previous estimate of 225-245 boepd.

Egdon chairman, Philip Stephens, said:

“This has been another period of impressive operational and financial performance for the Company. Egdon’s flagship asset, Wressle, continues to perform strongly, generating positive cash flow and with plans being progressed for its further development.”

Increased value

Egdon also announced it has increased the accounting value of four onshore fields. This was because of expected increased or restored production or drilling.

The licences cover the following: Avington, Keddington and Waddock Cross oil fields and Kirkleatham gas field (see below).

Plans

Egdon gave details in the accounts of plans for its onshore sites.

Wressle: A potentially significant increase in resources from the Ashover Grit had been highlighted through a new seismic interpretation and mapping, the company said. It has commissioned a new competent person’s report to consider all oil and gas bearing formations at Wressle. Planning and permitting work is underway for a new well or wells at the Wressle site and for gas export. (Egdon holds 30% of the Wressle licence.)

Avington: Egdon increased its stake to 36.33% after the acquisition of Aurora Production (UK) Limited. The operator, IGas, has now begun operations to resume production, expected in the second quarter of 2023.

Biscathorpe: Decision awaited from October 2022 appeal hearing.

Dukes Wood: NSTA has approved a programme to plug and abandon the Dukes Wood-1 oil well and recomplete it for geothermal testing.

Fiskerton Airfield: This site remained shut-in. The company said an existing water injection well may be used to manage produced water from other Egdon sites. (Egdon holds 80% of the licence)

Keddington: A new well is likely to be drilled in the second half of 2023 at a new location east of the field. Planning permission is in place. (Egdon holds 45% of the licence.)

Kirkleatham: Discussions are underway for a potential farm-out of a sidetrack gas well. Preparations are being made for a planning application.

North Kelsey: Appeal hearing scheduled for 14 June 2023.

Waddock Cross: Planning and permitting preparations underway to drill a new horizontal well in the first half of 2024. Oil-in-place has been estimated at about 57 million barrels. Egdon increased its share of the licence to 73.75% with the acquisition of Aurora Production.

Key figures

Production: up 27% to 46,465 boe (H1 2022: 36,714 boe)

Production rate: 253 boepd (H1 2022: 200 boepd)

Total cumulative production from Wressle field to 31 January 2023: 357,838 barrels

Unaudited revenue: up 46% to £3.725m (H1 2022: £2.551m)

Overall profit after £0.741m tax charge: £0.435m (H1 2022: £1.222m)

Cash and cash equivalents: £5.524m (H1 2022: £2.084m)

Net current assets: £6.593m (H1 2022: £1.65m)

Estimated production rate for full financial year: 240-250 boepd (up from 225-245 boepd)