TIDMANGS
RNS Number : 8985A
Angus Energy PLC
30 May 2023
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) 6/2014 AS IT FORMS
PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION
(WITHDRAWAL) ACT 2018 ("MAR"), AND IS DISCLOSED IN ACCORDANCE WITH
THE COMPANY'S OBLIGATIONS UNDER ARTICLE 17 OF MAR.
30 May 2023
Angus Energy Plc
("Angus Energy", "Angus" or the "Company")
Saltfleetby Field: Production and Pricing Update and future
Drilling Plans
Further to the announcement of 15 May 2023, Angus Energy (AIM:
ANGS) is pleased to announce that production at the Saltfleetby
Field has reached a steady operating state from the 3 producing
wells in the field, B2, A4 and the new B7T.
After a short duration plant outage, we are now exporting gas to
the National Grid at a combined average daily rate of 9.5 mmscfd,
reaching peak flows of over 10 mmscf. The new B7T well continues to
clean-up and the Company anticipates exceeding a combined average
daily rate of 10 mmscfd, on a sustainable basis.
We have seen gas prices falling back to lower summer levels over
recent weeks, but winter 2023-2024 pricing is strong, with
forecasted prices at GBP1.24 per therm on Heren NBP pubished
trading data. On the basis of continued production at this level,
known hedge prices and published market forward prices we should be
generating approximately GBP2.5 million of revenues on average each
month for winter 2023 from Saltfleetby.
Potential Future Drilling and Gas Storage
Angus continues to evaluate storage opportunities at Saltfleetby
variously for natural gas, hydrogen and CO2. To advance this, the
Company has also engaged planning consultants to submit a further
planning permission for an expanded site at Saltfleetby to
encompass a number of new wells and process plant.
The drilling will initially address the Namurian reservoir,
below the presently exploited Westphalian, as a commercial source
of natural gas but wells will also be designed to be repurposed as
potential injection wells for gas storage, whether in the Namurian
or Westphalian, and for which further planning permissions at
national level would be sought if deemed appropriate.
Furthermore, following on from the pioneering use of hydrogen
tight Soluforce pipe in the first commercial transmission grid
connection at Theddlethorpe Entry Point, Angus will be exploring
the design parameters around the management of hydrogen or CO2 at
high pressures, alongside traditional storage of natural gas.
The Namurian reservoir, which sits below the Westphalian from
which the Company currently extracts natural gas, has produced 1.5
bcf to date but a very wide variation of gas in place exists
between our own recent CPRs and internal estimates by previous
Operators, Gazprom-Wintershall and Roc Oil. To date no detailed
interpretation of the Namurian, independent from the Westphalian,
has been undertaken and accordingly a full third party
re-interpretation of both reservoirs is presently underway,
expected to complete in October.
In 2006 Gazprom-Wintershall estimated the storage capacity of
the overall field to be between 700 and 800 million cubic metres,
making it easily the largest onshore storage facility in the UK.
Estimates by Angus of storage capacity are somewhat higher and do
not include the Namurian.
Richard Herbert, CEO, writes: "The Company is pleased to have
reached this production milestone and to be able to turn attention
to both organic and inorganic growth opportunities. Gas storage is
an obvious and topical one. Properly engineered to manage H2 or CO2
as well as natural gas, storage at Saltfleetby has the potential to
meet the twin demands of present and future administrations for
clean energy and energy security and we are pleased to be able to
align shareholder interests with those longer term goals whilst
offering the possibility of enhanced gas recoveries in the medium
term."
.
END.
Enquiries:
Angus Energy Plc www.angusenergy.co.uk
George Lucan Tel: +44 (0) 208 899
6380
Beaumont Cornish (Nomad) www.beaumontcornish.com
James Biddle/ Roland Tel: +44 (0) 207 628
Cornish 3396
WH Ireland Limited
(Broker)
Katy Mitchell/ Harry Tel: +44 (0) 113 394
Ansell 6600
Flagstaff PR/IR angus@flagstaffcomms.com
Tim Thompson Tel: +44 (0) 207 129
1474
Fergus Mellon
Aleph Commodities info@alephcommodities.com
Qualified Person's Statement: Andrew Hollis, the Technical
Director of the Company, who has over 40 years of relevant
experience in the oil and gas industry, has approved the
information contained in this announcement. Mr Hollis is a Fellow
of the Geological Society and member of the Society of Petroleum
Engineers.
Notes
About Angus Energy plc
Angus Energy plc is a UK AIM quoted independent onshore Energy
Transition company with a complementary portfolio of clean gas
development assets, onshore geothermal projects, and legacy oil
producing fields. Angus is focused on becoming a leading player in
the aggregation, production and storage of energy. Angus Energy has
a 100% interest in the Saltfleetby Gas Field (PEDL005), majority
owns and operates conventional oil production fields at Brockham
(PL 235) and Lidsey (PL 241) and has a 25% interest in the Balcombe
Licence (PEDL244). Angus Energy operates all fields in which it has
an interest.
Important Notices
This announcement contains 'forward-looking statements'
concerning the Company that are subject to risks and uncertainties.
Generally, the words 'will', 'may', 'should', 'continue',
'believes', 'targets', 'plans', 'expects', 'aims', 'intends',
'anticipates' or similar expressions or negatives thereof identify
forward-looking statements. These forward-looking statements
involve risks and uncertainties that could cause actual results to
differ materially from those expressed in the forward-looking
statements. Many of these risks and uncertainties relate to factors
that are beyond the Company's ability to control or estimate
precisely. The Company cannot give any assurance that such
forward-looking statements will prove to have been correct. The
reader is cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
announcement. The Company does not undertake any obligation to
update or revise publicly any of the forward-looking statements set
out herein, whether as a result of new information, future events
or otherwise, except to the extent legally required.
Nothing contained herein shall be deemed to be a forecast,
projection or estimate of the future financial performance of the
Company.
Explanation of Terminology:
scm (standard cubic metre) mscm (thousand standard cubic metre)
and mmscf (million standard cubic feet) are traditional measures of
volumes of gas. As producers we tend to observe volume flow from
wells and through process plant but we are paid on the energy
content which is metered and analysed at point of sale. Mmscfd
represents mmscfd per day.
These two types of measurement, energy and volume, are related
by the calorific or higher heating value which is the number of MJ
per standard cubic metre. Very intense processing, i.e. lower
temperatures, will tend to remove more higher hydrocarbon fractions
such as propane, butane and pentane, which will lower the calorific
value but improve the margin of safety in terms of meeting
transmission grid specification.
55,000 Therms, given a calorific value of about 41MJ per
standard cubic metres is approximately equal to 5mmscf or 141,584
scm, 1,612,486 kwhrs, 5,804,948 MJ.
FWHP- Flowing Well Head Pressure
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END
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