TIDMANGS
RNS Number : 1610H
Angus Energy PLC
01 August 2021
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) 596/2014 AS IT
FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION
(WITHDRAWAL) ACT 2018 ("MAR"), AND IS DISCLOSED IN ACCORDANCE WITH
THE COMPANY'S OBLIGATIONS UNDER ARTICLE 17 OF MAR.
7 a.m. 2 August 2021
Angus Energy Plc
("Angus Energy", "Angus" or the "Company")
General Operations Update
Angus Energy plc (AIM: ANGS) is pleased to give an update on
operations and planning at all of its hydrocarbon fields and its
geothermal projects.
Saltfleetby Gas Field - PEDL 005 - 51% interest. On track for
re-commissioning in December 2021
Angus Energy continue preparing for the resumption of production
operations in the Saltfleetby Gas Field. The process facility
detailed design has resumed and is at an advanced stage. Long lead
equipment has been ordered and bespoke processing units have been
tendered. Several items of processing equipment are in fabrication.
Design work leading to confirmation of all bulk materials is
underway.
Further detail on current activities include:
-- Two gas compressor packages are being fabricated by
specialist engineers in Kent. Caterpillar gas engines and Ariel
reciprocating compressor sections have been ordered and delivery
confirmed. Bulk materials for the skid-mounted unit and process
manifolds fabrication have been ordered. The first complete gas
compressor package will be delivered to site in November.
-- Production process equipment for dehydration, dew point
control, condensate stabilisation and fuel gas treatment have been
designed by Hull based engineering group. Local UK fabricators have
tendered for the build and their bids are under evaluation.
-- Process equipment including separators, storage tanks and
enclosed ground flare system has been sourced as surplus equipment
from a recently decommissioned site in the vicinity. The equipment
will be recertified and slightly modified for use in the process
facility. Re-purposing this equipment provides opportunity for
schedule and budget savings.
-- Gas commercial sales meter and analyser skid is under
fabrication in the UK and the Factory Acceptance Test of the
complete package, including the remote communications link, is
scheduled for September. Factory Assessment Test ("FAT") will be
attended by representatives from the National Grid as well as Angus
engineering team. Equipment will be delivered to site after
FAT.
-- Power generation with Caterpillar gas engine using fuel gas
from the production process has been ordered. Electrical switchgear
is included in the order. Delivery to site is in October.
-- Detailed design of the process facility continues with
Aberdeen based engineering house. The facility design has been
iterated to include final equipment selections and is being matured
into the complete design package. Bulk materials are being
specified for subsequent order. Civils and foundations designs are
being progressed. Electrical and instrumentation design will resume
from August.
-- Construction activities will commence in August with limited
groundwork and foundations preparation on this pre-developed site.
In situ fabrication of flowlines will commence in September as well
as installation of the ground flare. Other production equipment
will be connected as individual skid packages arrive from the
fabricators.
-- Permitting and planning is well advanced. As regards the
pipeline, our statutory Safety Case and Major Accident Prevention
Document are in advanced stages of review by HSE. The process plant
will be dealt with by continuous assessment by local HSE Field
Officers. We are in continuous engagement with Environment Agency
regarding the process plant. All local authority planning
permissions for both process plant and pipeline are in place. OGA
approval of Field Development Plan is also complete.
Saltfleetby Gas Field - Side Track and other assets
-- Rig tender and selection is already complete with tenders for
associated equipment expected in the forthcoming week.
-- Target mobilisation of rig is slated for first week in
October. Should suppliers indicate potential delays, whether
Covid-19 related or otherwise, the Board will consider a deferral
of the side track until end of March 2022 if those delays would in
any way cause consequent delay to commissioning of the process
plant. This would be to ensure that Angus and partners benefit from
the very tight pricing environment indicated by UK National
Balancing Point forward gas prices for January, February and March
2022. The Board will advise in due course should this become the
case.
-- As regards planning and permitting, local authority approval
was obtained last week. An initial presentation has been made to
HSE. BSOR application to HSE will be made in mid August. It is
understood that the operation can be conducted under Angus'
existing Environment Agency permit for this site.
-- Angus Energy contracted realtimeseismic.com to carry out the
reprocessing of our Saltfleetby 3D seismic dataset which was
originally acquired in 1997 over a total area of 79.92km(2). This
considerable reprocessing project was motivated by the perspective
of using up-to-date techniques to improve the geological
interpretability of the dataset. The final deliverable was a depth
model validated by the fields well data. A focused proportion of
this reprocessed seismic is currently undergoing interpretation by
the technical team in order to provide an accurate representation
of the sub-surface to aid in the successful design and drilling of
the SF7V side-track, the results of which will be announced when
available.
-- Over subsequent months a more complete re-interpretation will
take place over the whole field and in particular over the southern
satellite reservoir with the aim of shaping a field development
programme to convert some of the 12 BCF of 1C (the low estimate of)
contingent resources into 1P (P90 or proven) reserves to supplement
the existing 18 BCF of 1P reserves from the main Westphalian
reservoir.
-- A technical note has been written in answer to a question on
Angus Energy's investor Q&A website page. The note details the
history of drilling at the field over the last 25 years and our
reasons for confidence about the forthcoming side track. Please
see
https://www.angusenergy.co.uk/media/investor-questions/
Lidsey Field - PEDL 241 - 80% interest
Seismic acquisition by Rees Onshore Seismic and Stryde is
complete and reprocessing again by realtimeseismic.com is expected
to be complete this week. The survey will tie-in the existing
seismic lines to define the subsurface structure.
Thereafter we are allowing until the middle of September for
re-interpretation and discussion with our partners in this Licence
before presenting to shareholders. Should the new seismic, as
adjusted for our revised depth conversion, continue to be as
promising as presently expected, we would move to a planning
application for a side track on this low impact site together with
an amendment to our Field Development Plan and subsequently
regulatory submissions to HSE. We have confirmed with Environment
Agency that the side-track can be drilled under our existing
standard rules permit.
Given likely planning permission timetables a side track is
unlikely to be carried out until we are into 2022. Given our
Licence holding is 80% we have some flexibility in terms of farming
out some or all of the capital cost to third parties.
Brockham Field - PL235 - 80% interest
Environment Agency determination of our application to reinject
water for reservoir management at Brockham is expected to be made
during September. If the determination is in favour of the
application, a further period of consultation would follow,
allowing for a variation of permit to be issued in late October or
early November. Additionally, Angus has begun to approach
stakeholders, local and national, for consultation regarding an
intervention in BRX4-Z. This intervention would involve the
abandonment of the Kimmeridge layer and re-perforation the Portland
layer in order to benefit from pressure support from water
injection. The re-perforation itself would be a relatively low
level intervention and would not require drilling, although this
and the abandonment would require the presence of a rig for a brief
period of time. Any operation would be subject to approval of water
injection by Environment Agency as well as traditional local
authority and other regulatory approvals.
Balcombe Oil Field - PEDL 244 - 25% interest
The Company has had further discussions with West Sussex County
Council and has indicated its intention to appeal the WSCC Planning
Committee's decision to reject our application for a short well
test against the Officers' recommendation to approve. Angus will be
making its appeal to the Planning Inspectorate and is presently
preparing its statement of case.
George Lucan, CEO, writes: "Angus remains focused on early near
term cash flow from the re-start and expansion of the Saltfleetby
Gas Field, taking advantage of the rally in gas prices and the
tight gas supply in the market. A separate update will be provided
on Angus's Energy Transition projects in the coming days."
.
Enquiries:
Angus Energy Plc www.angusenergy.co.uk
George Lucan Tel: +44 (0) 208 899 6380
Beaumont Cornish (Nomad) www.beaumontcornish.com
James Biddle/ Roland Cornish Tel: +44 (0) 207 628 3396
WH Ireland Limited (Broker)
Katy Mitchell/ Harry Ansell Tel: +44 (0) 113 394 6600
Flagstaff PR/IR angus@flagstaffcomms.com
Tim Thompson Tel: +44 (0) 207 129 1474
Fergus Mellon
Aleph Commodities info@alephcommodities.com
Notes
About Angus Energy plc
Angus Energy plc is a UK AIM quoted independent onshore Energy
Transition company with a complementary portfolio of clean gas
development assets, onshore geothermal projects, and legacy oil
producing fields. Angus is focused on becoming a leading onshore UK
diversified clean energy and energy infrastructure company. Angus
Energy has a 51% interest in the Saltfleetby Gas Field (PEDL005),
majority owns and operates conventional oil production fields at
Brockham (PL 235) and Lidsey (PL 241) and has a 25% interest in the
Balcombe Licence (PEDL244).
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