Egdon Resources Plc (LON:EDR) have updated the market on Wednesday on their first half operations.
The oil and gas exploration firm said that production in the first half of its financial year had increased compared to the same period one year ago.
Additionally, the current volumes of production has remained constant with guidance.
Across the six month period, which ended on January 31, Egdon said that total production was 32,758 barrels of oil equivalent, giving an average of 178 barrels per day.
This saw a steady increase from the 30,026 barrels per day figure reported a year ago, or the equivalent of 164 barrels per day,
Egdon added that current production is also within its current guidance range of 170 to 180 barrels per day – and notably this is also higher than annual guidance expectations to be between 130 and 140 barrels of oil produced per day.
Mark Abbott, Managing Director of Egdon Resources plc, said:
“2020 has started positively for Egdon, with continued strong production across our portfolio, a positive outcome to the Wressle planning inquiry and the announcement of a farm-in by Shell U.K. Limited into our offshore Resolution and Endeavour projects.
Our current focus is on the Wressle field development, where we are working to discharge the planning conditions ahead of commencing site works. We will provide shareholders with a detailed update on Wressle and the Biscathorpe project following Joint Venture meetings in the coming weeks.”
Egdon’s deal with Shell
In January, Egdon announced that they had partnered with Shell (LON:RDSB) on two UK gas discoveries.
Shell will be taking a 70% working interest in the two licenses and will take over operations, whilst Egdon will keep the remaining 30%.
Shell will pay for the stake by funding 85% of the costs of buying and processing 3D seismic survey data for the Resolution and Endeavour gas discoveries on the licences.
The acquisition price is capped at $5 million, beyond which Shell will pay 70% of costs.
Egdon Resources would have impressed with the market and shareholders with the partnership with an oil titan in Shell. The firm will be hoping that this partnership can produce results for both parties.
Shares in Egdon Resources Plc trade at 3p (-2.80%). 26/2/20 13:15BST.