Angus Energy has announced an agreement with a division of Royal Dutch Shell for gas production from Saltfleetby in Lincolnshire.
Shares climbed sharply on the news. At the time of writing, the company’s share price was up 44.41% at 1.23p.
Angus said this morning it was “pleased to have such a robust partner for gas sales”.
A statement to Angus investors said the deal was with Shell Energy Europe Limited, and was for the entire production from the Saltfleetby gas field.
Angus said the terms of the agreement were in line with the assumptions in the competent person’s report (CPR) for Saltfleetby.
This estimated 16 billion cubic feet of mean sales gas reserves and 10 billion cubic feet of mean contingent reserves.
The report identified as “key risks” what it described as poor-to-moderate quality 3D seismic data of the reservoir and the highly faulted geological structure which “could compartmentalise the reservoir, leading to isolation of gas volumes”.
Last week, Lincolnshire County Council planners approved the extension of a pipeline from the Saltfleetby field.