Industry

Angus counts on production at Saltfleetby and Balcombe

saltfleetby site

Current facilities at Saltfleetby site B. Image: Angus Energy

Production at Angus Energy’s Saltfleetby gasfield and oil flow at Balcombe would “mark a turnaround in the group’s fortunes” and bring “material cash flow for the first time”, the company said today.

It described Saltfleetby in Lincolnshire as “a gem of an asset” after gas reserves were estimated at a midpoint of 16 billion cubic feet, worth just over £25 million to the company.

Angus also said Balcombe, taken over from Cuadrilla in West Sussex, “looks to have great potential as a producing asset”.

Shares rose sharply on news of the Saltfleetby reserves. At one point they were up 50% and closed at 0.98, up15.59%.

Saltfleetby was the UK’s largest onshore gas field. It has been shut-in since 2017 following the closure of the Theddlethorpe gas terminal.

Non-executive chairman, Patrick Clanwilliam, said Saltfleetby would replace “even some of the more optimistic revenue expectations” that shareholders had in the Kimmeridge sidetrack well drilled at the Brockham oil site in Surrey in 2017. That turned out to be non-commercial without fracking.

The company said it envisaged spending £1.5m to bring the Saltfleetby gas onstream in 2020 and to drill a horizontal sidetrack to well No. 5 in the first half of 2021 to accelerate recovery.

Managing director, George Lucan, said:

“This is clearly a gem of an asset and a just reward to loyal shareholders.  We look forward to converting these reserves into clear cash and positive cashflows whilst keeping open the possibility of further substantial upside from the contingent resources.”

He said with Saltfleetby the group was “ready to transition from predominantly exploration led company to one which focuses on safe operations, measured production and quantifiable cash flow”.

Weald sites

At Balcombe, Angus has applied for planning permission to remove what it believes to be brine drilling fluid from the well and then carry out a three-year extended well test.

The next available meeting of West Sussex County Council’s planning committee is 24 March 2020.

181216 Brockham Brockham Protectors

Angus Energy site at Brockham, Surrey, on 16 December 2018. Photo: Brockham Protectors

At Brockham, Angus is seeking permission from the Environment Agency to resume water injection. It was also considering recompleting the Kimmeridge BRX4z sidetrack as a Portland producer. Disposing of the site and licence was still an option, along with decommissioning all three wells, the company said.

Production at the Lidsey in West Sussex was restricted by the relatively high cost of water injection, Angus said. The new horizontal sidetrack was disappointing and revealed that the current structural mapping was incorrect. Another sidetrack was being considered. Permission had been submitted for oil pumping at Lidsey 24-hours a day, seven days a week.

Revenue and losses up

The company’s accounts described the year to September 2019 as “difficult”.

There were increases in revenue and production, mainly from Lidsey, the accounts revealed.

There were also increased losses over the previous year. This was mainly because of higher administrative expenses from impairment of the carrying value of interests at Brockham and Lidsey.

The year also saw a boardroom coup, ending with the departure of Paul Vonk on a £300,000 pay-off.

Well testing at Balcombe was delayed for a year and conventional oil flow at Brockham was found to be non-commercial.

The company described the regulatory environment as “steadily more challenging”. It also said the UK’s onshore oil and gas industry was “bedevilled” by the sustainability question.

Key figures

Oil and gas production revenue: £0.2m (2018: £0.066m)

Gross production: 5,346 barrels (5,056 from Lidsey); (2018: 1,678 barrels)

Loss for the year: £5.043m (2018: £2.790m)

Cash balance £3.419m (2018: 0.846m)

Admin expenses: £3.976m (2018: £2.230m)

Total non-current assets: £12.308m (2018: £10.463m)

Total current assets: £4.213m (2018: £1.637m)

Total current liabilities: £1.031m (2018: £1,440m)

Total liabilities: £4.083m (2018)

Angus holdings

Saltfleetby (PEDL005) 51%

Brockham (PL235) 65% (operator)

Lidsey (PL241) 80% (operator)

Balcombe (PEDL244) 25% (operator)

A24 (PEDL143) 12.5%

Links

Annual report and accounts

Saltfleetby gas field competent persons report

32 replies »

  1. So, “anyone” should have sold on Monday!

    50% gain, no loss and certainly NOT one of Jack’s, running at 1000s%!! But, nice to see you have bothered to actually look at the company that is the subject of this item! Next, you might understand what you saw.

    You really have no idea regarding economics or basic arithmetic Jack, but don’t let that stop you. It brightens my day to see how you feel you can cause panic with fantasy.

    How are those Tesla shares doing, Jack? Oh, no better than Angus, indeed worse, over the same timespan. REALITY Jack, data already supplied. FACTS not OPINION.

    • MARTIN ,

      To be honest MARTIN , I would much rather focus and debate FRACKING with you , rather than Angus Energy , but as you endlessly seem to want to talk, sorry DIVERT and talk about the share price …….. The readers will see Angus Energy has seen a eye watering FALL in its share price and is now scrapping along the floor . …. Its all there MARTIN , see for yourself ……

      Now MARTIN I’m on my knees here , please, please for the love of Drill Or Drop, again I will ask .Can we please have enough of your never ending diversionary tactics and finally get back to talking about why FRACKING is a toxic , climate changing , environmentally damaging , dangerous to human and animal health , debt ridden PONZI scheme ????????

      OR are we to acknowledge that your DEADLY silence and refusal to discuss the matter with jack is because you know he’s right .

      • MARTIN ,

        HAVE YOU HEARD THE GREAT NEWS ??????????

        BUDGET 2020

        The DEATH KNELL for UK FRACKING is very near.

        Taken from the LINK below , quote. ” To encourage more environmentally-friendly ways of heating homes and other buildings, the government will also introduce a Green Gas Levy to help fund the use of greener fuels, increase the Climate Change Levy that businesses pay on GAS. ”

        https://www.gov.uk/government/publications/budget-2020-documents/budget-2020

        AND for the icing on the cake………..

        Plastic packaging tax to come into force from April 2022

        Manufacturers and importers whose products have less than 30% recyclable material will be charged £200 per tonne

        The parties on at Jack’s tonight and MARTIN, your invited to join in with the celebrations.

  2. If you spread your horizon you might have seen I had already commented upon the budget, Jack, but it was removed to spare someone’s blushes! But, good budget.

    The devil will be in the detail regarding levies for gas or electricity, as much of the electricity will still be produced from gas and increased costs to businesses might be a little difficult!

    I suspect there will be some degree of “mitigation” that basically means they will have had to show they have tried. I like the incentive on packaging. It will give the companies, like INEOS, who have made strides in this area an opportunity to increase their profits! Science always wins.

    But, you will now be fully aware of the “mechanics” regarding red diesel, so no excuse to follow another fake news practitioner!

    More importantly, why are fuel prices not dropping like a stone at the pumps?? By my basic calculations at least another 10p/litre should be in the pipeline.

    I quite liked the bit about space, Jack. They are looking for someone to fire off into orbit. I think you could qualify based upon your experience of going round and round and getting nowhere!

    Oh, by the way, when the item is about fracking Jack, I will be pleased to oblige you. I’m just a bit old fashioned in that when it is cricket I use a bat, when it is football I use some boots. (Also by the way, unless you have problems with the voices, we are NOT talking, but nice to see you have decided, from that comment, that I am not a BOT!)

Leave a Reply to Martin Collyer Cancel reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.