Third Quarter Production and Operations Update

Angus Energy PLC

03 October 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.

3 October 2023

Angus Energy Plc 

("Angus Energy", "Angus" or the "Company")

Third Quarter Production and Operations Update

·    Production for the Quarter was 7.9 mm thermsup

·    Estimated revenues of £6.3m for the Quarter

Gas volumes produced and sold from the Saltfleetby Field equalled 7.9 mm therms in aggregate for the months of July, August and September 2023 combined, compared to 6.8 mm therms produced and sold in the second quarter of this year. Third quarter production equates to an average of 2.6 mm therms per month (2.3 mm therms per month in the second quarter), as against hedged volumes of 1.5 mm therms per month for the third quarter (1.75 mm therms per month for the second quarter).  Operational efficiency was 90% for the 3^rd quarter (88% operational efficiency for the second quarter). Gas condensate (liquid) production averaged 160 bbl/day.

The quarter included a planned full plant shut down for 4 days at the end of August for safety-critical maintenance and remedial work on one of the two compressor engines on the Saltfleetby site. One of the compressor engines suffered a mechanical issue in the second half of September. The compressor returned to service on 2 October, allowing dual compressor operations to recommence.

The B07T well has continued to clean up through the temporary flowline connecting it to the field facilities and now returns only minor quantities of solids, associated with the drilling fluids used to drill the well. Construction of the permanent flowline from the well continues, with civil works complete and the fabrication of the pipework largely finished. Installation of the flowline will take place in the coming weeks, with commissioning planned for the second half of October.

Work on the previously announced global refinance of the Company's debt is well advanced, with a new reservoir model and production forecasts in the process of being finalized for lenders.

END.

Enquiries:

Angus Energy Plc	www.angusenergy.co.uk
George Lucan	Tel: [phone]
Beaumont Cornish (Nomad)	www.beaumontcornish.com
James Biddle/ Roland Cornish	Tel: [phone]
WH Ireland Limited (Broker)
Katy Mitchell/ Harry Ansell	Tel: [phone]
Flagstaff PR/IR	[e-mail]
Tim Thompson	Tel: [phone]
Fergus Mellon
Aleph Commodities	[e-mail]

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.  Note that "mm" in respect of therms or scf means million.  Confusingly, in the case of Joules, different nomenclature is used and "MJ" is an abbreviation for megajoules which is equivalent to millions of joules.

 

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