VSA Morning Flow Test, 11/01/21
Egdon Resources (LON:EDR)
Egdon Resources (LON:EDR) confirms the Wressle commissioning timeline and that the workover rig and other equipment required was delivered to site last week and the work to reperforate and recomplete the well ahead of first production are ready to commence.
As previously highlighted this adds substantially to EDR’s production, indeed, with H1 FY 2020 nearly over and recent guidance pointing to 100bopd over that period, H2 average production is expected to double to 200bopd as Wressle’s net 150bopd comes online. This will be constrained initially as part of the commissioning process hence the full impact does not come through immediately. This provides EDR with reliable, substantial and stable production and revenue which will be important for investor confidence after the challenges of recent months. With this platform EDR is better positioned to advance its development portfolio and realise value at key assets including Biscathorpe, North Kelsey and Resolution / Endeavour.
We reiterate our Buy recommendation and 22.5p/sh. target price.
Oliver O’Donnell, CFA, Head of Research & Natural Resources Analyst | T: +44 (0)20 3617 5180 | E: [email protected]
Samuel Green, Equity Analyst | T: +44 (0)20 3005 5010 | E: [email protected]
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