Shares in Egdon Resources fell 1p to 17p following Surrey County Council refused planning permission for the UK onshore Holmwood-1 exploration well.
Egdon has a 38.4% stake in the PEDL143 licence area where Holmwood is sited.
Voting on the planning committee was close and the planning officers of the council had recommended that drilling should be allowed. Egdon believes there is enough grounds to appeal the decision.
The first gas flows from the Kirkleatham gas development in the PEDL068 exploration licence area were on 19 April Egdon has a 40% interest. Flow rates will be built up over time.
Egdon reported a profit of £4.41m in the six months to January 2011. This was nearly all due to the gain on the £4.5m disposal of a subsidiary owning some of Egdon’s French assets. Group revenues jumped from £498,000 to £932,000.
Net cash was £4.27m at the end of January 2011.
Download the May 2011 edition of AIM Journal at http://www.hubinvest.com/AIMPDFMay2011_20.pdf
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