REG - Angus Energy PLC - Saltfleetby Field: Production and Pricing Update

Angus EnergyAnnouncement

30/05/2023 07:00

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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 £1.24 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 £2.5 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 (http://www.angusenergy.co.uk/)
 George Lucan                  Tel: +44 (0) 208 899 6380

 Beaumont Cornish (Nomad)      www.beaumontcornish.com (http://www.beaumontcornish.com/)
 James Biddle/ Roland Cornish  Tel: +44 (0) 207 628 3396

 WH Ireland Limited (Broker)
 Katy Mitchell/ Harry Ansell   Tel: +44 (0) 113 394 6600

 Flagstaff PR/IR               angus@flagstaffcomms.com (mailto: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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