Industry

Angus raises £3m for new acquisition and Weald operations

Angus Energy

Angus Energy announced today it had raised just over £3m in a placing of more than 70 million new shares.

The funds would be used for the potential acquisition of an unidentified gas field, as well as work on existing southern England sites at Brockham, Balcombe, and Lidsey, the company said.

A statement to investors on the placing followed online rumours yesterday about the possible acquisition of a gas field.

The share price closed the day down 15.5% at 4.35p. The most recent previous Angus placing was in February 2019.

Angus said money raised from today’s placing would be used for “due diligence” in the acquisition of a 51% interest in a licence and operatorship of an existing UK onshore gas field. The proposed cost of the field is £1, the company said.

According to the statement, the gas field had been in production “on and off” for 20 years. It stopped production in 2017, the statement said, when a nearby refinery terminal closed. According to production data from the Oil and Gas Authority, the only gas field that stopped production in 2017 was Saltfleetby, near Mablethorpe, in Lincolnshire, operated by Wingas.

Angus said the field has eight wells already drilled, with seven completed and ready for production. OGA data on drilled wells, confirms there are eight parent wells at Saltfleetby, some with sidetracks.

Angus said 67 billion cubic feet of dry gas and 1.1 million barrels of condensate had been produced from the field, representing 60% of the gas in place. Total recovery, the company said, could be 70-80%.

The company said the deal was at an advanced stage. The terms would include a cash contribution towards the cost of eventual abandonment. This contribution could also cover the £1.7m cost of connection of the field to the national gas grid. This could be achieved within 12 months and without further calls for cash from shareholders, the statement said.

The statement added that today’s placing would also be used for:

  • Ongoing work at Brockham, Surrey, where the company is seeking to isolate a water zone
  • Forthcoming work at Balcombe, Sussex, where there are plans for an extended well test and removal of wellbore and drilling fluids
  • Seismic overview at Lidsey, West Sussex

Angus managing director, George Lucan, said

“We continue to develop and improve our asset base in the Weald Basin and are very excited to bring this new opportunity to investors. Should the Proposed Acquisition proceed to a successful conclusion it would offer clear diversification benefits and the possibility of cashflow generating production without the near term need for further equity capital.”

12 replies »

  1. Go ahead and invest then , see how much you make in 12 months, I seem to remember Mr Lenigas said Brockham would be producing over 2 years ago , I wonder how those who invested at around 30p feel now? Also that Lidsey would make the company self funding , surely if any of this were true then you investor types wouldn’t have to dilute your cash with multiple placings? Another due in 3 months maybe ? Not really a good time to be in fossil fuels anyway .

    • Jono

      No need to invest. Unknown ‘existing and new’ shareholders have bought 71 Million shares at 4.25p in the hope of a profit. Let’s see how much they make in 12 Months ( if they keep the shares that is rather than unloading them at 6p or so ).

  2. Jono: you investor types?, so you have never been an investor, you don’t like risk… thats what oil operators do they prospect risk!
    There is no guarantee whether there will be a gain or a loss!
    Excuse me but thats how the stock market and the world work!

  3. Well, well! So Jono thinks there are “investor types”??? Think you will find a large percentage of pensioners fall into that bracket, although many will allow others to do it for them.

    Are these the same as the ones who believe in alternative energy, invest in Tesla and lose money when Mr. Musk fails to achieve self funding-or are they more righteous?

    Multiple placings are usually the way exploration companies are funded ermm whilst they explore. Sometimes the result is they become self funding, the majority do not. AIM is the Wild West. It applies to more than oil and gas and the pluses and minuses are the same across the piece.

    Just for the record Jono, I made a small investment in Angus some while ago which I then sold shortly after, (which is why I watch what they are up to now) made enough profit to fund the lease of a hybrid, to try them out, ie. made the decision to find a means to action what I wanted to investigate and did not expect anyone else to fund that for me, and did not borrow to do so. Since replaced the hybrid because it was so limiting in terms of practicality. Perhaps some SOLD at 30p having bought cheaper-or somewhere along those lines?

  4. A lot of pensioners have fallen for the hype around UK Oil & Gas and are now broke . Lets see what happens when they all are just stranded assets after the next elections 🙂 Martin , you say you made a small investment and then sold ? How is that an investment anymore than betting on a horse ? You only have to read the LSE chat to see how many are 60% down and will not recover from it.

    • Jono

      I am not so sure that lots of pensioners are now broke due to investing in UKOG, or any other onshore oil and gas penny shares. Maybe 0.0001% or less.

      They can beggar themselves prior to being pensioners and when they are by investing in any shares, be they penny ones or larger ( Carillion et al ).

      Best to take advice ….

      https://www.amazon.co.uk/Penny-Stocks-Dummies-Peter-Leeds/dp/1118521692

      Or any web site which notes that pensioners should not gamble with cash they cannot afford to lose.

  5. Well, there are many pensioners who are broke from drinking and the bookies, Jono. Some will blame others for that, some will not.

    Whether it is the bookies, drink, UKOG, Angus, Tesla, M&S, only invest what you can afford to lose. I would suspect the majority of pensioners invest mainly in reasonably safe bets, paying a high income eg. Shell, and then may look at a small flutter on higher risk ventures. After all, getting excited when you are a pensioner is good for the circulation, and not all are antis who find excitement in strange ways like searching for cakes in the middle of the night, photographing ladies undies hung on a fence at PNR etc. etc., not this time anyway

    Yes, I could have bet on a horse, or have done the lottery Jono, but I had some faith in my ability to research and decide there was a difference between a bet and an investment. Perhaps that is because I never had much luck with horses, and wouldn’t trust my own research in that area.

    I really do not see any connection with local or EU elections and pensioners wasting their money, not this time anyway. Perhaps the next General Election some pensioners will look at pensions since 2010 and compare to prior. Others may consider historically that they are piggy banks to help pay for the unemployed as companies shed labour following corporate tax increases as the wealthy who are expected to do so by the Marx Brothers are long gone.

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