LONDON (Alliance News) - Egdon Resources PLC on Tuesday said it swung to a loss in the first half of its financial year due to impairment charges booked on a number of assets and lower revenue driven by weaker production, which has also resulted in it revising down its full-year production guidance.
The company's pretax loss for the six months to the end of January was GBP1.7 million, compared to a GBP834,000 profit made a year earlier. The loss was driven by charges taken on disposals and farm-outs and impairments booked on its Waddock Cross, Burton on the Wolds and Kiln Lane projects in the half.
The charges were made alongside lower revenue being booked in the half, down to GBP0.9 million from GBP1.4 million, as production fell. Total production in the half was 27,232 barrels of oil equivalent, equating to 148 barrels of oil equivalent per day, below Egdon's previous full-year guidance of 195 boepd due to lower production at its Ceres gas field in the North Sea.
As a result, the company has revised down its full-year production guidance to 180 boepd.
Shares in Egdon were down 0.9% to 8.05 pence on Tuesday morning.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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