Angus Energy Share Discussion Threads

[3put] 31/3/2022 10:33

New footage coming this weekend ...... Excitement building

[gaffer73] 31/3/2022 10:28

That doesn't matter as long as we produce enough gas to cover the hedges though.

[3put] 31/3/2022 10:28

Recently answered questions
is there any update on the Passive Dehydration, Joule Thomson and Condensate Stabilisation skids, timetable for delivery to site? Asked on 28 February 2022
We advised that these three skids could slip 20-30 days into April and we continue to strongly support that advice.

Hello, Are you able to share with shareholders the impact the current very high! gas price has on the economics of the Saltfleetby field? To that end, will these vastly improved numbers be taken into consideration when discussing a possible sale with interested parties? Thank you. Asked on 28 February 2022
The economics of the field looking great – principally because the forward curve is so greatly improved. See



(to get pence/therm from $/mmbtu divide by 1.35 for the exchange rate and multiply by ten). Current prices are high at 225p/therm but they are even higher in March 2023! Even as far out as March 2024 they are 130p/therm or over two and half times the 10 year average of 50 p/therm we made our initial projections on in 2020.



Hi, If the best offer on the table as a result of the FSP is not considered fair value and acceptable by the Board, is walking away from the FSP and moving full steam ahead with Saltfleetby as 51 owners still an option for the company? Thanks. Asked on 24 February 2022
We are not bound to pursue the FSP until we have found a buyer. We entered into it to see what the market was for Angus and its assets as we review all possibilities for our future direction whether in hydrocarbons and/or alternative energies.

With production at Saltfleetby tantalisingly close and gas prices at an all time high, can you expand on the decision to launch the FSP? Shareholders are concerned that suitors may be able to secure Saltfleetby and/or the company on the cheap – particularly given the volatile international markets caused by Russia’s invasion of Ukraine. What can the Board do to prevent this? Asked on 24 February 2022
Interest had already been expressed in Saltfleetby over the previous two years. Continued interest and a formal approach for Angus shares encouraged the Board to open the doors to further buyers so as secure the best price for shareholders and to draw attention to our undervalued shares. After all we had a market capitalisation of £6 million at one point last year, with an interest in Saltfleetby conservatively valued at £24 million.

hi, what is the current state of play regarding the permissions for Saltfleetby, Brockham, Lidsey, Balcombe? Asked on 15 February 2022
Re Environment Agency. We believe that we can expect EA permission for Brockham in the near future. Saltfleetby we reasonably believe should be available in draft form within a month. Our Balcombe site is also under review by EA and we hope to obtain that permit in H1.

Re Local Authorities: we are seeking permission to abandon the Kimmeridge and perforate the Portland at Brockham, but do not require permission to reinject water produced at Brockham. Our appeal at Balcombe is likely to be heard before the end of Q3. Our variations of existing planning permissions for Saltfleetby are very minor and are expected to be approved in March.

Will Angus shares be suspended before any deal announcement. Asked on 14 February 2022
I don’t believe so.

With the placing to raise £1.4m, do you believe Angus are in a stronger position to negotiate a higher price for the sale of all or a part of Saltfleetby? Asked on 3 February 2022
Definitely. To have tried to negotiate with purchasers whilst simultaneously dealing with senior debt providers and having the financial stability of the company in any kind of doubt, would have been very counterproductive for shareholders in the short and long term.

Thanks for the continued updates on twitter. You posted a vdeo of the first pile being driven . One particular disingenuous detractor has suggested you do not have planning permission to do this. Can you please clarify as this appears to be a classic example of the concerted effort to discredit the company. Asked on 1 February 2022
The piles are an integral part of the foundations for three pieces of equipment and are part of the existing approvals for the site. There is no further requirement for approvals for this work.

Hi, please can you confirm that the board will not accept an offer for the company and/or Saltfleetby, unless they feel it represents fair value for the company and its assets. Thanks. Asked on 30 January 2022
We will get the best possible deal for shareholders – weighing in both the amount of any consideration and the nature of the consideration (cash or shares) whether for sales at an asset or at a company level.

Hi, does the company stand by the published CPR Saltfleetby figures – which calculate revenues at multiple times of the current company market cap even before the huge rise in gas prices – and can you promise shareholders this will be taken into account in any negotiations for the sale of the company and/or Saltfleetby? Asked on 30 January 2022
The Company continues to believe that the CPR (albeit with small adjustments for timing of First Gas) as published is a true and fair view. We are conscious that the NPV valuations shown are indeed well above our market capitalisation and we regularly point this out to interested parties.

Once Saltfleetby is in production, will the company commit to buying back a significant proportion of shares in issue to reverse any dilution that has occurred as a result of the historical placings? Asked on 30 January 2022
That is certainly something we would consider doing.

Most long term shareholders don’t want the company sold because some invested at up to the 20p and would never get their money back. If the assets have no so called value by the markets nobody would want to buy them would they. Please consider this message when acting in the best interest of all shareholders. Thankyou. Asked on 30 January 2022
We will bear this in mind. Clearly we are in the happy situation of having many interested parties in this asset and therefore are in a position to seek the best possible bid for shareholders.

Which of lidsey or Brockham will be producing oil first, and within which quarter of 22? Asked on 30 December 2021
We have been notified that the Environment Agency is minded to grant our permit to re-inject water at Brockham but this is subject to a further period of public consultation, so we have not yet advised the market of this development. Assuming the EA encounters no new information during consultation, the permit is likely to be granted during February 2022 and we would therefore expect to restart production at Brockham immediately thereafter as we have already upgraded the site to meet improvement conditions required of us. Other permissions, mostly non-contentious or administrative, being available we would hope that Lidsey production would recommence during Q2 2022.

We understand that there has been a request for minor amendments to planning consents at Saltfleetby Gas Field as a result of changes to the onsite generation capacity, flare and condensate stablisation design, and addtional tree planting. Is the application for variation of planning permission now fully aligned with the Environment Agency Permit application and what is the status of the latter?

Thank you and Happy Christmas wishes to the Angus Team Asked on 30 December 2021
Alignment. Yes the two are aligned. The process is iterative as with all of the regulatory and planning bodies. In this instance further HSE (compliance with PED/PSSR and ATEX/DSEAR) and EA requirements led to modifications in design and layout during the autumn which are now reflected in this application to Lincolnshire County Council for minor variations to our existing consent.

Progress on EA Permit: We have dealt with a number of Schedule 5 notices requesting further information throughout the summer and early autumn and have, as we understand it, only two matters left to resolve. One matter concerns establishing agreement on precise methods of noise modelling and associated software and the other the management of a low pressure, low volume incidental off-gas stream. Both have a variety of highly technical solutions, the choice of which is being discussed with Agency and our various project engineers. We expect to resolve these matters in early January and do not, at the present moment, see either as a roadblock to First Gas.

Will Angus Energy be drilling down to the EGS Super Hot Rock Supercritical Water for the enhancement of electricity production and a smaller footprint per site. Thankyou. Asked on 28 December 2021
We target 200C at c. 5000m. Super hot rock would be signficantly deeper in SW England and could yield > 400C. Some elements of our design incorporate elements common to Super Hot Rock so we follow developments closely, but our focus is on commercial well design – getting cost down away from the government funded figures we have seen to date. Managing temperatures of 400C plus, whilst offering a much better energy yield, present significant cost increases in well drilling and construction and would not be our on our immediate agenda as we approach potential technical and financial partners.

The Hedge on gas production/sale of gas, is fixed for 36 months. a member on LSE chat board has stated that even if the loan is paid of early, The Hedge remains in place for the remainder of 36 months. Is this true? Asked on 20 December 2021
Yes, the hedge is for a fixed term on a declining balance which roughly aims to decline wiith the scheduled loan repayments. It would be very likely (asusuming we succeed in obtaining target production from the side track, itself 100% unhedged, and representing windfall gains at present forward gas prices) that the loan would repay earlier, but the hedge would be fixed on that scheduled loan amortisation profile.

However it would be open to the company to break or reset the hedge once the loan was repaid – although this would incur a normal mark to market charge – allowing for more dynamic hedging – i.e. picking particular moments to reset the hedge. The amount of hedged production after, say, two years would be less than c 25% of total production (including production from the sidetrack).

[jtidsbadly] 31/3/2022 10:27

...Anguish could, of course, buy matching forward contracts to buy gas every month for 36 months in the same amount as is covered by the sales contracts. That would crystalline the loss. Though who would lend them the money is more than a moot point. I doubt Mercuria would do it - even at SONIA +12%. It’s not going to happen, is it?

[3put] 31/3/2022 10:27

about 4 weeks until first gas

[3put] 31/3/2022 10:26

George Lucan, CEO, commented:

"The focus is now away from skid delivery to installation with the aim of having the site ready for commissioning during April and producing during May. The present gas price forward curve shows very high average prices of over 400 pence per therm for 2022.

In fact, gross production, of which we have a 51% share, solely from the existing wells and which is wholly unhedged for the month of June, is expected to yield 1.5 million therms or gross revenue of £7.2 million at today's forward price for that month alone.

Gross production solely from the side-track, should it be successful, is again wholly unhedged for the remainder of the year and is expected to yield a further 1.5 million therms each month of which Angus share is 51%.

The forward curve remains very high and seems likely to remain high this year and the company is more than anyone else acutely conscious of the need to preserve our timeline in order to provide value to shareholders whether through revenue sales or corporate action."

[3put] 31/3/2022 10:26

George Lucan, CEO, commented:

"The focus is now away from skid delivery to installation with the aim of having the site ready for commissioning during April and producing during May. The present gas price forward curve shows very high average prices of over 400 pence per therm for 2022.

In fact, gross production, of which we have a 51% share, solely from the existing wells and which is wholly unhedged for the month of June, is expected to yield 1.5 million therms or gross revenue of £7.2 million at today's forward price for that month alone.

Gross production solely from the side-track, should it be successful, is again wholly unhedged for the remainder of the year and is expected to yield a further 1.5 million therms each month of which Angus share is 51%.

The forward curve remains very high and seems likely to remain high this year and the company is more than anyone else acutely conscious of the need to preserve our timeline in order to provide value to shareholders whether through revenue sales or corporate action."

[headinthesand] 31/3/2022 10:26

JTids, the cost of breaking a hedge is calculated on a "mark to market" basis. Which basically means that the monetary difference between future swap contracts is worked out on a given day and that becomes the cost.

Today, it would be tens of millions of pounds.

The heavenly choir on the other side is getting aerated, because the fact remains that, regardless of how much gas is produced out of the field, at current gas futures pricing, Mercuria is owed an eye-popping £44 million between July 22 and June 23 by ANGS and SEL, courtesy of the hedge.

Thta's a cold, hard, clinical fact - which as you know, the shills are violently allergic to.

[3put] 31/3/2022 10:25

Recently answered questions
is there any update on the Passive Dehydration, Joule Thomson and Condensate Stabilisation skids, timetable for delivery to site? Asked on 28 February 2022
We advised that these three skids could slip 20-30 days into April and we continue to strongly support that advice.

Hello, Are you able to share with shareholders the impact the current very high! gas price has on the economics of the Saltfleetby field? To that end, will these vastly improved numbers be taken into consideration when discussing a possible sale with interested parties? Thank you. Asked on 28 February 2022
The economics of the field looking great – principally because the forward curve is so greatly improved. See



(to get pence/therm from $/mmbtu divide by 1.35 for the exchange rate and multiply by ten). Current prices are high at 225p/therm but they are even higher in March 2023! Even as far out as March 2024 they are 130p/therm or over two and half times the 10 year average of 50 p/therm we made our initial projections on in 2020.



Hi, If the best offer on the table as a result of the FSP is not considered fair value and acceptable by the Board, is walking away from the FSP and moving full steam ahead with Saltfleetby as 51 owners still an option for the company? Thanks. Asked on 24 February 2022
We are not bound to pursue the FSP until we have found a buyer. We entered into it to see what the market was for Angus and its assets as we review all possibilities for our future direction whether in hydrocarbons and/or alternative energies.

With production at Saltfleetby tantalisingly close and gas prices at an all time high, can you expand on the decision to launch the FSP? Shareholders are concerned that suitors may be able to secure Saltfleetby and/or the company on the cheap – particularly given the volatile international markets caused by Russia’s invasion of Ukraine. What can the Board do to prevent this? Asked on 24 February 2022
Interest had already been expressed in Saltfleetby over the previous two years. Continued interest and a formal approach for Angus shares encouraged the Board to open the doors to further buyers so as secure the best price for shareholders and to draw attention to our undervalued shares. After all we had a market capitalisation of £6 million at one point last year, with an interest in Saltfleetby conservatively valued at £24 million.

hi, what is the current state of play regarding the permissions for Saltfleetby, Brockham, Lidsey, Balcombe? Asked on 15 February 2022
Re Environment Agency. We believe that we can expect EA permission for Brockham in the near future. Saltfleetby we reasonably believe should be available in draft form within a month. Our Balcombe site is also under review by EA and we hope to obtain that permit in H1.

Re Local Authorities: we are seeking permission to abandon the Kimmeridge and perforate the Portland at Brockham, but do not require permission to reinject water produced at Brockham. Our appeal at Balcombe is likely to be heard before the end of Q3. Our variations of existing planning permissions for Saltfleetby are very minor and are expected to be approved in March.

Will Angus shares be suspended before any deal announcement. Asked on 14 February 2022
I don’t believe so.

With the placing to raise £1.4m, do you believe Angus are in a stronger position to negotiate a higher price for the sale of all or a part of Saltfleetby? Asked on 3 February 2022
Definitely. To have tried to negotiate with purchasers whilst simultaneously dealing with senior debt providers and having the financial stability of the company in any kind of doubt, would have been very counterproductive for shareholders in the short and long term.

Thanks for the continued updates on twitter. You posted a vdeo of the first pile being driven . One particular disingenuous detractor has suggested you do not have planning permission to do this. Can you please clarify as this appears to be a classic example of the concerted effort to discredit the company. Asked on 1 February 2022
The piles are an integral part of the foundations for three pieces of equipment and are part of the existing approvals for the site. There is no further requirement for approvals for this work.

Hi, please can you confirm that the board will not accept an offer for the company and/or Saltfleetby, unless they feel it represents fair value for the company and its assets. Thanks. Asked on 30 January 2022
We will get the best possible deal for shareholders – weighing in both the amount of any consideration and the nature of the consideration (cash or shares) whether for sales at an asset or at a company level.

Hi, does the company stand by the published CPR Saltfleetby figures – which calculate revenues at multiple times of the current company market cap even before the huge rise in gas prices – and can you promise shareholders this will be taken into account in any negotiations for the sale of the company and/or Saltfleetby? Asked on 30 January 2022
The Company continues to believe that the CPR (albeit with small adjustments for timing of First Gas) as published is a true and fair view. We are conscious that the NPV valuations shown are indeed well above our market capitalisation and we regularly point this out to interested parties.

Once Saltfleetby is in production, will the company commit to buying back a significant proportion of shares in issue to reverse any dilution that has occurred as a result of the historical placings? Asked on 30 January 2022
That is certainly something we would consider doing.

Most long term shareholders don’t want the company sold because some invested at up to the 20p and would never get their money back. If the assets have no so called value by the markets nobody would want to buy them would they. Please consider this message when acting in the best interest of all shareholders. Thankyou. Asked on 30 January 2022
We will bear this in mind. Clearly we are in the happy situation of having many interested parties in this asset and therefore are in a position to seek the best possible bid for shareholders.

Which of lidsey or Brockham will be producing oil first, and within which quarter of 22? Asked on 30 December 2021
We have been notified that the Environment Agency is minded to grant our permit to re-inject water at Brockham but this is subject to a further period of public consultation, so we have not yet advised the market of this development. Assuming the EA encounters no new information during consultation, the permit is likely to be granted during February 2022 and we would therefore expect to restart production at Brockham immediately thereafter as we have already upgraded the site to meet improvement conditions required of us. Other permissions, mostly non-contentious or administrative, being available we would hope that Lidsey production would recommence during Q2 2022.

We understand that there has been a request for minor amendments to planning consents at Saltfleetby Gas Field as a result of changes to the onsite generation capacity, flare and condensate stablisation design, and addtional tree planting. Is the application for variation of planning permission now fully aligned with the Environment Agency Permit application and what is the status of the latter?

Thank you and Happy Christmas wishes to the Angus Team Asked on 30 December 2021
Alignment. Yes the two are aligned. The process is iterative as with all of the regulatory and planning bodies. In this instance further HSE (compliance with PED/PSSR and ATEX/DSEAR) and EA requirements led to modifications in design and layout during the autumn which are now reflected in this application to Lincolnshire County Council for minor variations to our existing consent.

Progress on EA Permit: We have dealt with a number of Schedule 5 notices requesting further information throughout the summer and early autumn and have, as we understand it, only two matters left to resolve. One matter concerns establishing agreement on precise methods of noise modelling and associated software and the other the management of a low pressure, low volume incidental off-gas stream. Both have a variety of highly technical solutions, the choice of which is being discussed with Agency and our various project engineers. We expect to resolve these matters in early January and do not, at the present moment, see either as a roadblock to First Gas.

Will Angus Energy be drilling down to the EGS Super Hot Rock Supercritical Water for the enhancement of electricity production and a smaller footprint per site. Thankyou. Asked on 28 December 2021
We target 200C at c. 5000m. Super hot rock would be signficantly deeper in SW England and could yield > 400C. Some elements of our design incorporate elements common to Super Hot Rock so we follow developments closely, but our focus is on commercial well design – getting cost down away from the government funded figures we have seen to date. Managing temperatures of 400C plus, whilst offering a much better energy yield, present significant cost increases in well drilling and construction and would not be our on our immediate agenda as we approach potential technical and financial partners.

The Hedge on gas production/sale of gas, is fixed for 36 months. a member on LSE chat board has stated that even if the loan is paid of early, The Hedge remains in place for the remainder of 36 months. Is this true? Asked on 20 December 2021
Yes, the hedge is for a fixed term on a declining balance which roughly aims to decline wiith the scheduled loan repayments. It would be very likely (asusuming we succeed in obtaining target production from the side track, itself 100% unhedged, and representing windfall gains at present forward gas prices) that the loan would repay earlier, but the hedge would be fixed on that scheduled loan amortisation profile.

However it would be open to the company to break or reset the hedge once the loan was repaid – although this would incur a normal mark to market charge – allowing for more dynamic hedging – i.e. picking particular moments to reset the hedge. The amount of hedged production after, say, two years would be less than c 25% of total production (including production from the sidetrack).

[3put] 31/3/2022 10:24

Bloomberg News
Tue, March 29, 2022, 5:56 PM·2 min read



1 / 3
European Gas Rises Again With Weather, Norway Supply in Focus
In this article:

NG=F
-4.59%

(Bloomberg) -- European natural gas rose for a second day amid cooler weather, lower Norwegian flows and uncertainty about Russia’s demand to be paid for shipments in rubles.



Benchmark front-month futures settled 5.7% higher at 108.38 euros per megawatt-hour. The contract retreated slightly from an earlier gain, after Russia said it would cut some military operations in Ukraine.

Also See: Russia-Ukraine Talks Edge Forward But Fail to Secure Cease-Fire

The gas market is weighing competing factors with the war in Ukraine in its second month. Colder weather could delay the replenishment of storage sites, putting upward pressure on prices. Meanwhile, any prospect of less fighting reduces the risk of gas flows to Europe.

Russia supplies about 40% of the European Union’s gas demand, and about a third of those shipments transit Ukraine. For now, gas to Europe has been flowing without interruptions. Russian shipments to the continent via key pipeline routes were stable on Tuesday, grid data showed.

Gazprom PJSC has also booked some pipeline space to ship gas to Germany via the Yamal-Europe pipeline later Tuesday and on Wednesday, according to auction results.

Still, below-average temperatures are forecast in northwest Europe until about the middle of April. Prices have also been supported by lower Norwegian flows amid unplanned outages at the Skarv field.

In addition, European gas buyers have shown unwillingness to accept Russian President Vladimir Putin’s demand for payment in rubles, adding another element of supply risk.

Concerns that the war could potentially disrupt Russian flows have coincided with an ambitious task set by the EU for traders and utilities to ensure that storage facilities are 90% full ahead of next winter.

Gas Storage

Still, the end of the heating season is alleviating supply concerns. Despite starting the winter with record-low inventories, “Europe could have more than enough gas to completely fill its storage by Oct. 1,” to beat the European Union’s 90% target, BloombergNEF said.

The best-case scenario of a 100% storage-fill by next winter envisages no disruptions to Russian pipeline flows and European gas prices remaining higher than in Asia to attract spot liquefied natural gas.

The summer contract has been more expensive than winter prices since late February. The market condition known as backwardation -- when near-term prices are higher than those at a later date -- can indicate tightness.

Futures retreated somewhat from an earlier gain on Tuesday, after Moscow said a “sharp reduction” in military operations in Ukraine’s Kyiv and Chernihiv areas would take place immediately. Still, Russia’s advance on the capital was already stalled, and previous efforts at diplomacy and overtures such as humanitarian corridors have yielded little or fallen apart.

Gas prices in the U.K. settled 7.2% higher at 263.42 pence a therm.

[1347] 31/3/2022 10:21

* allegedly JT

[jtidsbadly] 31/3/2022 10:15

HITS: as I understand it, there is no “fee”. Unless there’s a schedule in the hedge contracts detailing the price per monthly contract for cancellation (which I’ve never heard of, though I suppose it’s possible) the cost to Anguish of cancelling the hedge contracts would be whatever Mercuria wanted it to be. If they think the forwards/futures markets are under-pricing the risk of yet higher prices over the remaining life of the hedges, they’ll want a higher price to cancel them than the market prices today for the forward contracts would suggest. When his failure to accept the $20mm he was offered by that bank forced the Interim MD to walk the plank, he fell into shark infested waters and the sharks will require more than a pound of flesh.

[sincero1] 31/3/2022 09:04

morning suckers ... i imagine the resident grey old disingenuous crayon eaters asked nurse to wheel them to the laptop at 8.00am to check the price ... then lots of mumbling, swearing and disappointment as they ask to be wheeled over to the staring window ..... its hilarious ... those mutton chops must be so sore from all the slapping ....

[3put] 31/3/2022 08:08

George Lucan, CEO, commented:

"The focus is now away from skid delivery to installation with the aim of having the site ready for commissioning during April and producing during May. The present gas price forward curve shows very high average prices of over 400 pence per therm for 2022.

In fact, gross production, of which we have a 51% share, solely from the existing wells and which is wholly unhedged for the month of June, is expected to yield 1.5 million therms or gross revenue of £7.2 million at today's forward price for that month alone.

Gross production solely from the side-track, should it be successful, is again wholly unhedged for the remainder of the year and is expected to yield a further 1.5 million therms each month of which Angus share is 51%.

The forward curve remains very high and seems likely to remain high this year and the company is more than anyone else acutely conscious of the need to preserve our timeline in order to provide value to shareholders whether through revenue sales or corporate action."

[3put] 31/3/2022 08:07

You have been very quiet last few days !! Lol

[1347] 31/3/2022 07:52

It's going to be amusing when these wierd dullards see that placing RNS drop. Could it be today or will they try and squeeze a bit more ramping time in before the AGM next week?

[3put] 30/3/2022 19:36

LondonSouthEast ;

Posts: 207

Price: 1.15

No Opinion

London South East interview with George Lucan, MD at Angus EnergyToday 17:11

We were delighted to catch up with George Lucan, who hasn't been able to do many interviews lately because of the restrictions imposed by the Takeover Panel.

What he was able to say today was: "We are continuing to be in discussions with parties." And: "The one thing I can add is that as a board we have worked so hard for this we are not about to give this away for 'a song'. We will drive the hardest bargain that we can in this environment."

Furthermore, shareholders can expect 1.5M therms of gas to be produced from May, and a further 1.5 M therms from the sidetrack well in August (51% of which goes to #ANGS making them debt free by the year end)- and Brockham is to start producing again after a two year hiatus. Please view the interview here: 

[sincero1] 30/3/2022 16:45

hits "Wait and see, kiddies... wait and see."

hits ?

hits ?

hits?

pahahahaha

see you suckers tomorrow...