LONDON (Alliance News) - Egdon Resources PLC on Tuesday reported a slightly narrowed first half loss, on revenue doubling, and, separately, had the resource potential at its Resolution gas discovery "validated" by an independent evaluation.
In the six months to January 31, Egdon's pretax loss narrowed to GBP724,000 from GBP845,000 the year before. The company's revenue doubled to GBP1.2 million from GBP640,000.
Egdon's total cost of sales increased 54% to GBP1.5 million from GBP972,000 with depreciation costs more than doubling to GBP544,000.
"I am pleased to report on a period in which Egdon has delivered an increase in production and revenues driven by the resumption of production from the Ceres gas field. It has been an operationally active period with the drilling of the Biscathorpe-2 exploration well and the successful play opening well at Springs Road-1 in the Gainsborough Trough," said Chair Philip Stephens.
Stephens added: "We have also continued to address the challenges of the operating environment with our Wressle development where we have appealed the refusal of planning consent for our revised proposal and remain confident of a positive outcome."
Egdon's production increased by 67% in the period to 30,026 barrels of oil equivalent, or 164 barrels per day.
From January to March, the company produced 240 barrels of oil equivalent per day, more than triple the amount produced in the same period a year ago.
Separately, Egdon said a report prepared by Schlumberger Oilfield UK for the Resolution gas discovery in Licence P1929 showed contingent resources 230.6 billion cubic feet of gas and 481.0 billion cubic feet of gas initially in place.
Shares in Egdon Resources were up 4.4% Tuesday at 6.00 pence each.