Angus Energy announces new start date for Saltfleetby sidetrack

Drilling of a delayed sidetrack at the Saltfleetby gasfield in Lincolnshire will begin next month, the site operator, Angus Energy, has said.

Angus Energy’s Saltfleetby-B gas production site. Source: Angus Energy

In a statement to investors today, the company said the well would be spudded on about 20 October 2022.

Drilling would continue for no more than 35 days, it said.

Angus Energy got planning permission for a sidetrack well in July 2021.

In October 2021, the company said there was uncertainty about the precise start date of drilling.

Two months later, it announced that “logistical issues” had held up procurement of the rig. Drilling was delayed until February 2022.

In January 2022, Angus Energy said work on the sidetrack could not be allowed to interfere with site construction and commissioning. Drilling was delayed until the second quarter of 2022.

In March 2022, the company said it was advising contractors of a spud date in June 2022.

But in June 2022, Angus Energy said it had “concluded all preparatory risk assessment and planning” for the sidetrack and had “advised suppliers of a spud date of 21 July 2022”.

There were five formal statements on Saltfleetby in July 2022 but none mentioned the sidetrack.

Gas sales and flow rates

Today’s statement said Saltfleetby had now produced and sold 1.2 million therms of gas.

Gas processing from the Saltfleetby B2 well began in August 2022.

From 17 September 2022, the company said flows averaged 5.2 million standard cubic feet per day (mmscfd). This was in line with predictions in reports in March 2020 and October 2021, the company said.

In October 2022, the flow rate would be increased to 6mmscfd, it added.

The statement also said a second compressor was undergoing tests and delivery was expected in early December 2022. This should double the capacity of the plant, it said.

Angus Energy’s chief executive, George Lucan, said:

“We now have built the foundation on which to expand our horizons in the energy space.”

Shares in Angus Energy closed the day up 6.67% at 2.08p.

1 reply »

  1. OMG. A company who actually seem to have their priorities right. Get gas flowing as the need for gas starts to take off, then add to the potential output of the site attempting to get more gas flowing for the peak demand period. Might even mean they can fund such expansion out of revenues instead of raising more money.

    Common sense may be making a return.

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