TIDMANGS
RNS Number : 1967Q
Angus Energy PLC
26 October 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 am 26 October 2021
Angus Energy Plc
("Angus Energy", "Angus" or the "Company")
Revised Saltfleetby Competent Persons Report
and Update on Operations and Brockham Licence
Angus Energy plc (AIM: ANGS) is pleased to share the updated
Competent Persons Report ("CPR") for the Saltfleetby Gas Field
("SGF") which reflects the higher revenues expected from the field.
The Full Report is available for download in the Presentations
section of the Company's website.
The CPR, performed by Oilfield International Limited, gives the
net present value of the cash flows from the SGF, including the
impact from the revised capex, the loan facility debt service
costs, the associated royalties and the mandatory hedging. Oilfield
International Limited has used a conservative discount rate of 10%.
The previous February 2020 report values in parentheses, presenting
the values attributable to Angus:
-- A conservative case, or P90, NPV10 of GBP25.4 million (previously GBP16.7 million)
-- A mid-case, or P50, NPV10 of GBP38.5 million (previously GBP25.2 million)
Alternatively expressed as estimates of net future cashflows,
again after all taxes, but without discounting, Angus' 51% interest
can be summarised as follows
-- A conservative or P90 sum of future cashflows to Angus of
GBP31.7 million (previously GBP21.5 million)
-- A mid-case, or P50, sum of future cashflows to Angus of
GBP55.9 million (previously GBP36.3 million)
In summary the Report estimates production giving rise to gross
field revenues, before costs etc on a mid-case basis of GBP230
million (previously GBP141 million) of which Angus's share is 51%.
This approximates to a gas price of 64p/therm being a mix of the
actual volumes already hedged at 43p/therm and the remaining
unhedged volumes accorded prices derived from the quoted and traded
NBP forward curve to December 2026 and thereafter escalated by 1.5%
per annum. The gross volume of reported Gas Reserves is
unchanged.
Update on Timing of Side-Track and Facilities
In the light of an extraordinary global logistical disruptions,
the CPR makes a conservative assumption of 15 March 2021 First Gas
date, but the Company continues to pursue its schedule of
commissioning and First Gas during February 2021.
In addition, the CPR notes, for similar reasons, that there
exists uncertainty about the precise start date for the side-track
well. This uncertainty is due to one major piece of rig equipment
being sourced from overseas and currently awaiting shipping. All
suppliers have been advised of this potential bottleneck and the
Company is evaluating the best management of the simultaneous
operations of drilling concurrent with construction of parts of the
process facilities. We do not presently anticipate any overrun into
the commissioning period but will plan for all eventualities.
The CPR also notes a 16% anticipated cost overrun on the
side-track. Some of this is the result of rising material and
logistics costs, recently advised to the Company. Additionally,
Angus undertook a full third party reprocessing of the 3D seismic
and has reinterpreted a limited block around the target well
path.
Furthermore, conscious of the great importance of this operation
to shareholders, we have engaged a group of supporting contractors
to advise on each element of the drilling programme. They include a
new Wells Manager, a mud and drilling fluid specialist, a rig
evaluation specialist, the drilling engineering house, Netherlands
based Wellspec, to advise on managed pressure environments, and a
third party review of our drilling programme by renowned Aberdeen
house, Norwell Engineering:
Moreover, the drilling programme has been reviewed by the senior
lenders' own upstream technical committee composed of a variety of
industry professionals.
We aim to update shareholders during the course of November with
a more defined and detailed timetable for both the side-track and
commissioning schedule.
Brockham Licence PL235
The Company also takes this opportunity to update investors on
its Brockham Licence, as follows. The Oil & Gas Authority have
extended the current petroleum licence by five years until 28
October 2026. Currently the Company has issued notices to local
residents in advance of the submission of a planning application to
Surrey County Council to abandon the Kimmeridge layer at BRX4-Z and
reperforate the Portland layer in order to increase production from
the Portland reservoir. We continue to expect determination of our
Environment Agency application to re-inject produced water during
Q4 which, if granted, will also provide reservoir support to
increase Portland production and reduce truck movements and the
environmental cost of incinerating produced water off-site.
George Lucan, CEO, comments: "Obviously this Report is a solid
validation of our efforts to restore this great onshore gas field
to production with the help of our many UK based suppliers,
advisors and contractors. Regardless of near-term fluctuations in
the gas price, the higher forward gas price curve from mid 2022
onwards, which is reflected in this CPR valuation, is the result of
structural gas supply-demand imbalances which, whilst only brought
to light recently, are likely to favour producers for many years to
come and highlight the national importance of this domestic gas
supply."
Qualified Person's Statement:
Andrew Hollis, the Technical Director of the Company, who has
over 40 years of relevant experience in the oil and gas industry,
has approved the information contained in this announcement. Mr
Hollis is a Fellow of the Geological Society and member of the
Society of Petroleum Engineers.
.
Enquiries:
Angus Energy Plc www.angusenergy.co.uk
George Lucan Tel: +44 (0) 208
899 6380
Beaumont Cornish www.beaumontcornish.com
(Nomad)
James Biddle/ Roland Tel: +44 (0) 207
Cornish 628 3396
WH Ireland Limited
(Broker)
Katy Mitchell/ Harry Tel: +44 (0) 113
Ansell 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).
Technical Glossary
ADR Abandonment, Decommissioning and Reclamation
Expenditure
bbl Barrels
/bbl per barrel
Bscf or Bcf Billion standard cubic feet
bcpd Barrels of condensate per day
bbl/d Barrels of Oil per day
blpd Barrels of liquid per day
bpd Barrels per day
boe Barrels of Oil equivalent @ xxx MCF/bbl
boepd Barrels of Oil equivalent per day @ xxx MCF/bbl
bopd Barrels Oil per day
bwpd Barrels of water per day
bwpd Barrels water per day
C$,CAD$,
CDN$ Canadian Dollar
CAPEX Capital Expenditure
E&A Exploration & Appraisal
E&P Exploration and Production
EBIT Earnings before Interest and Tax
EBITDA Earnings before interest, tax, depreciation, and
amortisation
EI Entitlement Interest
EIA Environmental Impact Assessment
EMV Expected Monetary Value
EOR Enhanced Oil Recovery
EUR Estimated Ultimate Recovery
FDP Field Development Plan
G&A General and Administrative costs
GIIP Gas initially in place
GOR Gas Oil Ratio
HSE Health, Safety and Environment
HSSE-SR Health, Safety, Security, Environment and Social
Responsibility
IRR Internal Rate of Return
km Kilometres
km2 Square kilometres
LoF Life of Field
m Metres
$m Million US dollars
M Thousand, especially of volume
m3 Cubic metres
Mcf or Mscf Thousand standard cubic feet
MMcf or MMscf Million standard cubic feet
m3d Cubic metres per day
Mean Arithmetic average of a set of numbers
Median Middle value in a set of values
Mm3 Thousand Cubic metres
Mm3d Thousand Cubic metres per day
MM Million (especially of volume and energy)
MMbbl Millions of barrels
MMBTU Millions of British Thermal Units
Mode Value that exists most frequently in a set of values =
most
likely
Mscfd Thousand standard cubic feet per day
MMscfd Million standard cubic feet per day
NGL Natural Gas Liquids
NPV Net Present Value
IRR Internal Rate of Return
MIRR Modified Rate of Return (Reinvestment of CF at market
rate)
OCM Operating Committee Meeting
OPEX Operating Expenditure
p.a. Per annum
P&A Plugged and abandoned
PDP Proved Developed Producing
PUD Proved Undeveloped
PVT Pressure volume temperature
P10 10% Probability
P50 50% Probability
P90 90% Probability
Rf Recovery factor
Sales Gas Gas that satisfies all National Grid plc's quality and
safety specifications and so can be transported through the
National Gas Grid to domestic and industrial consumers.
scf or cf Standard Cubic Feet
scfd or cfd Standard Cubic Feet per day
scf/ton Standard cubic foot per ton
SEC Securities and Exchange Commission
SPE Society of Petroleum Engineers
SPE PRMS 2018 Guidelines for categorising and valuing petroleum
resources
SPEE Society of Petroleum Evaluation Engineers
STB or stb Stock tank barrel
STOIIP Stock tank Oil initially in place
T Tonnes
TD Total Depth
Te Tonnes equivalent
Tscf or Tcf Trillion standard cubic feet
TCM Technical Committee Meeting
Tpd Tonnes per day
US$ United States Dollar
WI Working Interest
1H20 First half (6 months) of 2020 (example of date)
2Q20 Second quarter (3 months) of 2020 (example of date)
2D Two dimensional
3D Three dimensional
4D Four dimensional
1P Proved Reserves
2P Proved plus Probable Reserves
3P Proved plus Probable plus Possible Reserves
Contingent Resources Those quantities of gas and liquids
estimated, as of a given date, to be potentially recoverable from
known accumulations by application of development projects but
which are not currently considered to be commercially recoverable
due to one or more contingencies.
1C Denotes a low estimate of contingent resources.
2C Denotes the most likely estimate of contingent resources.
3C Denotes a high estimate of contingent resources.
Important Notices
This announcement contains 'forward-looking statements'
concerning the Company that are subject to risks and uncertainties.
Generally, the words 'will', 'may', 'should', 'continue',
'believes', 'targets', 'plans', 'expects', 'aims', 'intends',
'anticipates' or similar expressions or negatives thereof identify
forward-looking statements. These forward-looking statements
involve risks and uncertainties that could cause actual results to
differ materially from those expressed in the forward-looking
statements. Many of these risks and uncertainties relate to factors
that are beyond the Company's ability to control or estimate
precisely. The Company cannot give any assurance that such
forward-looking statements will prove to have been correct. The
reader is cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
announcement. The Company does not undertake any obligation to
update or revise publicly any of the forward-looking statements set
out herein, whether as a result of new information, future events
or otherwise, except to the extent legally required.
Nothing contained herein shall be deemed to be a forecast,
projection or estimate of the future financial performance of the
Company.
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END
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