StockMarketWire.com - Exploration and production company Edgon Resources reported wider annual losses on a slump in oil and gas revenue and asset writedowns owing to the pandemic impact.

For the year ended 31 December, pre-tax losses widened to £4.8 million from £1.7 million year-on-year as revenue fell to £946,000 from £2.2 million.

Production fell to 145 boepd from 182 boepd, but was ahead of guidance of 130-140 boepd.

The losses included write-downs, pre-licence costs and impairments of £3.03 million, higher than the £1.72 million reported last year.

The company also said it had been advised by Shell that the 3D seismic survey was pushed back by one year to February 2022, delaying the activity on the Resolution and Endeavour gas discoveries.

'As a result of a revised environmental impact assessment on local fishing businesses ... the optimum time window to successfully acquire seismic data in 2021 was during February, not March/April as originally anticipated,' the company said.

'It was not possible to finalise all of the required agreements in respect of managing the fishing vessels operating in the survey area within the timeframe necessary to enable the survey to take place in February 2021,' it added.

In August last year, Egdon completed a farm-out agreement with Shell U.K. relating to UK offshore licences P1929 and P2304 which contained the Resolution and Endeavour gas discoveries.




At 10:10am: [LON:EDR] Egdon Resources PLC share price was 0p at 1.65p



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