Funding for work at the Saltfleetby gas field in Lincolnshire has been agreed, it was announced this morning.

The operator, Angus Energy, said it had signed a loan with Mercuria Energy Trading Limited and Aleph Saltfleetby.

In a statement to investors, Angus managing director, George Lucan, said the loan would “unlock the substantial shareholder value of the Saltfleetby Gas Field”.

Today’s statement did not confirm the size of the loan. Previous announcements said it would be up to £12m and secured against the field. It would be spent on gas pipeline installation and connection to the National Transition System, gas processing facilities, site preparation, sidetrack drilling and field abandonment.

Angus confirmed today that it would drill the third production well at Saltfleetby before reconnecting the two existing gas wells.

The statement said this would allow the company to produce 10 million standard cubic feet (mmscf) per day as soon as new processing facilities had been commissioned. The first gas was expected in the final quarter of 2021, the statement added:

“The timing of this will allow us to benefit immediately from winter gas prices at the capacity rate of the facility thus enhancing the initial revenues from the field.”

Approval of the Saltfleetby field development plan was now expected after the initial drawdown under the loan facility, Angus said.

Angus has a 51% stake in Saltfleetby. The remainder is held by Saltfleetby Energy Limited, the new name of the former operator, Wingas.