Industry

Lidsey oil production flow rates below expectation – Angus statement

170907 Lidsey rig 1

Lidsey Oil Field. Photo: Lidsey Oil Watch

Angus Energy has announced initial flow rates of 40 barrels of oil per day at its horizontal production well at Lidsey in West Sussex.

Five months ago, Angus predicted a sustained 400 barrels a day at Lidsey (interview with IG Analysis). 

In November 2016, Xodus forecast a base flow rate in year one of 279 barrels a day, tailing off to 77 barrels a day in year 10.

In a statement this morning, the company said production from the Great Oolite section of Lidsey-X2 was “below expectations”.

The Angus share price has fallen sharply on the news. It closed last night at 26.625p. At the time of writing it was 16.25p, down more than 38%.

171117 Angus share

This is the second piece of disappointing news for oil production in the Weald Basin this week. On 15 November 2017, UK Oil and Gas Investments plc announced that initial flow tests from the KL1 layer at its Broadford Bridge site suggested this zone would not be commercially viable without reservoir stimulation. UKOG has repeatedly said it would not use hydraulic fracturing in the Weald.

“Hole in production tubing”

Last year, Angus predicted in a presentation to investors Lidsey would produce about 300 barrels a day.

This morning, the company said it was “examining evidence that suggests a partial flow reduction is the result of a hole in the production tubing, therefore not allowing the well to be fully drawn down”.

It added that the initial flow rates had “potential for increased yield”.

“The company is conducting a thorough study to optimise and enhance production levels.”

Managing director, Paul Vonk, said:

“Even with these initial flow rates, Lidsey-X2 provides commercial production and cash flow. We will continue to optimise production from the Great Oolite reservoir at Lidsey as we work to increase flow rates and we look forward to developing its additional reservoirs to enhance long run value for our shareholders.”

The original well at the site, Lidsey-X1, was producing an average of 25 bopd before it was shut in on 31 Jan 2016. Angus said this well would resume production and was expected to achieve 15-20 bopd.

The company added that it would submit an addendum to its field development plan to the Oil and Gas Authority. This would seek to begin production appraisal in the Kimmeridge and Oxford layers at Lidsey.

Xodus predictions for Lidsey-X2

Xodus flow rates for Lidsey

Predictions by Xodus in Angus AIM admission document, 7 November 2016 http://www.angusenergy.co.uk/wp-content/uploads/2016/11/Angus-Energy-AIM-Admission-Document-7.11.2016.pdf

 

 

26 replies »

  1. Well well, or not very well well, Angus, reality bites doesn’t it?
    So it comes down to stimulation, a little like the production figures.

    “Angus said this morning it was “examining evidence that suggests a partial flow reduction is the result of a hole in the production tubing, therefore not allowing the well to be fully drawn down”.”

    Now, the question is, where is the “hole in the production tubing” is that in the aquifer?

    Just like Egdon, it seems that operational incompetence is inbred?

    It will be interesting to see what the EA and the council have to say about that interesting word “leaks”?

    [Typos corrected at poster’s request]

    • Ha ha! My phone spell checker has a sense of humour!
      Well, well, not Well “we’ll” and twice i see?
      And incompetence “os” inbred should be incompetence “is” inbred….mustn’t write while walking.

      [Typos corrected]

    • Phil C
      I would worry more if there was a hole in the casing and cement through the aquifer section.
      The production tubing is just for production, and to protect the casing from wear and tear.
      Easily pulled out and replaced or repaired as the well is not particularly deep ( as easily as anything is in an oil well ).

      • I suspect that the production tubing is not holed, that may be little more than a sop to throw out of the window at the shareholders, i suspect the volumes never were sufficient without “stimulation” by whatever means.

        I am just destruct testing Angus own announcements by throwing the dodgy glued together suicidal stock holders announcements at the wall to see which ones stick, so far, none of them.

        And that was always the intention.

        Better and more fun than the standard interminable meandering navel gazing by the usual suspects isn’t it?

  2. Really John! Check your maths. Firstly, there are many buyers mopping up shares in a company where previously shares were limited availability-most held by the BOD. Secondly, anyone who wished to trade, will have been able to return over 20% profit within around 90 minutes. Maybe that is what they have done, maybe they will hold for the “suggestion.” Even late investors who bought in at 30p had the opportunity this morning to top up at “bargain” prices so that their 30p will no longer average 30p. Most investors have recently been moaning that they missed the bus. Well, another one came along, and many are jumping onto it.
    I’m afraid by throwing out a post without bothering to check what the situation really means for investors you simply clarify how poor the antis are at anything to do with the realities of finance. Do you really feel other antis are unlikely to know about such matters, or will not check themselves?

    • Martin
      Yes. Long term low risk investors would be in Shell or for a bit more adventure Petrofrac.
      AIM investors have to be fleet of foot.
      As you note 20% could be made up to press today with 30% likely.
      Or for those watching the train wreck that is carillion, a cool 40%.
      The big news, good or bad, is yet to land.

  3. I have to say I have never trusted Angus, the SP was bonkers and was based purely on hype. I wouldn’t invest in this company there are better opportunities out there. But of course that is just my take on it and everyone is entitled to their own opinion. What I don’t appreciate is companies ruining the reputation of the whole industry!

  4. Any experts know if the slotted liner is also the production tubing? I assumed that once the slotted tubing had gone in the oil leaked through the slots into the well before being pumped out. Production tubing would have required perforation and they certainly did not carry out that evolution.

    • Mike
      It is not the same. The slotted liner hangs below the last casing, and the production tubing within that ( all the way to the top ).
      If you use a slotted ( or holed ) liner, you do not need to perforate it.
      Horses for courses of course. There is a good explanation on Wikipedia.
      If there is a hole in the production tubing, then you are pumping it up the tubing, and some runs back down.

      How you get a hole is another story, of course. Angus would be hoping for a large hole near the bottom I guess.

  5. hewes62

    It is interesting that this site is now dominated by a group of antis who seem to want to post simply to excite some who might be easily excited. I do find it a bit demeaning towards their “audience” that they seem to feel this is the level they should pitch. It didn’t used to be the way. Is it because there are no real arguments left? I suspect so, because if you trawled through recent weeks and removed such, there would be very few anti posts left.

    I think the 30% has been passed now. Juggle with eggs and you can end up with egg on face.

    • Martin
      Perhaps we all wait for bigger news as nothing is really hapenning.
      Cuadrilla are drilling, INEOS are just surveying and Third Energy is waiting.
      So we have a lull In Site preparation ( no lorries to surf etc ), no fracking and therefore no earthquakes to look for, no frack fluid returns to transport and treat, no gas being treated, no flaring and, apart from some mercaptans from Third Energy, nothing much to talk about, other than what happens elsewhere in the world.

      Perhaps we should discuss the definition of an unacceptable risk. Or maybe not, as, going by the Wressle enquiry, it’s an opinion, so we will never agree.

    • Martin. Your comment, one of thousands, is hilarious. You are the biggest poster of nothingness on here. Ruth’s server is groaning under the weight of empty rhetoric from you.

      It’s interesting you state:
      ‘anyone who wished to trade, will have been able to return over 20% profit within around 90 minutes’ I would suggest you substitute the word ‘anyone’ as the only ‘traders’ in those 90 minutes are those who engineered the hyperbole and were waiting in the wings to strip the assets from the unsuspecting.

      I’m afraid by throwing out a post without bothering to check what the situation really means for investors you simply clarify how poor you are at anything to do with the realities of finance.

  6. Bit harsh GBK!

    In respect of the share price you are correct, but it is simply a reflection of how few shares there are available and not tied to the BOD. That then dictates any news, or lack of, will move the price easily and quickly.

    Todays news it is very normal. There are a few gushers, many dusters and the others in between can be difficult to get going.

    In terms of their other hold up, it looks as if that is finally being sorted. Yes, two parties fell out, but so did the Phils! If they can kiss and make up, should be a simple matter for SCC and Angus.

    • Martin, we usually agree on most things but UKOG and ANGS SP’ were way overvalued on 100% speculation and a few PI’s will have been burnt by both. Not a fan of either. But as I said that is just my opinion.

  7. ‘Todays news it is very normal’

    flow rates of 40 barrels of oil per day

    Last year, Angus predicted in a presentation to investors Lidsey would produce about 300 barrels a day.

    The Angus share price has fallen sharply on the news. It closed last night at 26.625p. At the time of writing it is 16.25p, down more than 38%.

    A ‘Sad Ken’ flutter springs to mind.

    No wonder the experienced big companies don’t get involved.

  8. The antis don’t need to do or say anything , the industry are doing it for them . Trading shares is not related to oil production at the end of the day Anyone can make or lose money but 40 barrels is laughable #nationalimportance

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