VSA Morning Flow Test,16/10/20
Egdon Resources (LON:EDR)
Egdon Resources (LON:EDR), following the announcement by UK Oil & Gas PLC (LON:UKOG) has announced that the company and its partners have relinquished their interests in PEDL143 (EDR 18.4% interest) due to the targets at Portland not being technically viable or economically feasible to progress.
In 2018 we removed Holmwood from our valuation, owing to questions over the commercial viability of the project. This implied a 0.4p/sh. reduction in our target price at the time. Today’s announcement therefore has little impact on our outlook for EDR where the focus remains on getting Wressle into production, drilling at Biscathorpe and acquiring seismic over the Resolution and Endeavour discoveries.
We reiterate Buy recommendation and 35.2p/sh.
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]
#Indicates VSA house stock.
All disclosures and supporting charts can be found in the PDF version.
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