30th Oct 2018 12:52
LONDON (Alliance News) - Egdon Resources PLC on Tuesday posted a widened loss due to write-offs relating to its Westerdale Prospect and Bury Hill Wood site.
Shares in the UK-focused onshore oil & gas exploration company were down 6.3% at 7.26 pence on Tuesday.
For its year ended July 31, Edgon reported a pretax loss of GBP2.0 million, widened from a GBP1.7 million loss the year before.
Exploration costs written-off and pre-licence costs came to GBP1.0 million, substantially above the GBP32,961 write-off its previous year.
These costs include a GBP753,000 write-off in relation to onshore petroleum licence Westerdale, in which Edgon is operator and holds 40% interest, where part of licence PEDL068 was relinquished.
A further GBP285,000 was written off with respect to "abortive planning costs" at Bury Hill Wood in southern England, where the Forestry Commission decided not to renew Edgon's lease.
Revenue fell to GBP778,830 from GBP1.0 million, largely the result of a GBP222,000 accrued revenue write-off relating to the Ceres gas field.
Annual production was 30,923 barrels of oil equivalent, dropping from 38,346 barrels the previous year.
More positively, administrative expenses were reduced to GBP1.1 million from GBP1.2 million.
Egdon submitted a new planning application for developing the Wressle field oil discovery. Chairman Philip Stephens said the company's strategic objectives remain intact despite the local council previously denying extended planning consent.
"Our financial position is good and 2019 promises to be an exciting year for Egdon and the onshore UK oil and gas industry as a whole," said Stephens.
Related Shares:
EDR.L