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Egdon Resources PLC on Tuesday reported a swing to an interim profit following the announcement that its partner Shell PLC withdrew two UK North Sea licenses during April.
Shares in Egdon Resources were 14% lower at 3.18 pence on Tuesday afternoon in London.
For the six months ended January 31, pretax profit stood at £1.2 million versus a loss of £1.0 million a year ago. Egdon currently produces about 760 to 800 barrels of oil per day at its Wressle production, higher than its 500 per day expectation, the company added.
Interim oil and gas revenue increased by more than sixfold to £2.6 million from £424,000 a year ago, the oil company adds. Production in the six months more than doubled to 36,714 barrels of oil equivalent per day from 16,928 year-on-year.
The average realised price per barrel of oil equivalent was sharply higher at $93.81 from $33.81 a year ago, the Hampshire-based firm said.
Also on Tuesday, the oil & gas exploration company said Shell informed it during April that it is withdrawing from two UK North Sea licenses, P1929 and P2304, on which the two companies were partnering. Shell was the operator for the licenses, which contain the Resolution and Endeavour gas discoveries. Last year, Egdon had farmed out a 70% stake to Shell, while keeping 30% itself.
Egdon on Tuesday said it will discuss the situation with the North Sea Transition Authority.
The firm does not propose any dividends, Egdon said.
‘The company is funded for all near-term committed activity,’ the firm explained.
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