Angus Energy Share Discussion Threads

[jtidsbadly] 21/6/2022 11:44

HITS: there’s no time limit in the news release to Alephs’s subscription to their second tranche, is there? I recall speculating shortly after it was announced as to whether there was some understanding between Anguish and Aleph containing conditions for it, possibly including the market price of the shares when the subscription was due. Angus will be needing that money, though.

[3put] 21/6/2022 11:43

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Can we please have an update on all the relevant permissions needed for current and near future work. Asked on 14 June 2022
We will answer this question in the ordinary course of our Q&A, but as regards our recommissioning project at Saltfleetby we note that on 22 March 2022 we have already answered this question as follows:

“Angus Energy plc (AIM: ANGS) is pleased to announce that the Environment Agency has issued its Variation Notice for the existing Saltfleetby gas field permit. The site permit now encompasses the new activities of processing and compressing of gas for direct export to National Grid. No further regulatory or planning permissions are required before First Gas.”

Given the amount of seismic performed over the last 25 years in the field and the number of bore-holes and side-tracks drilled, providing good offset data, presumably the company and its contractors must be wholly confident of hitting the target zone. Putting that aside, what operational risks exist and could the programme be more complicated or expensive than planned? What lessons have been learned from mistakes by previous drillers in this formation? Asked on 31 May 2022
Thanks. The level of confidence about the target zone is indeed very high. We are addressing an area of the reservoir which was being produced from by an existing well, which was shut in due to a well-bore related issue.

An non-exhaustive list of risks, ever present in all drilling programmes is given in hxxps://www.researchgate.net/publication/317248002_Downhole_Drilling_Problems

Pertinent here are 1) hole collapse – this occurred twice in the Saltfleetby field and both times in the same layer, so we have introduced mitigation measures and will approach this layer with appropriate caution and 2) differential sticking ; 3) loss of bottom hole assembly – this occurred twice at Saltfleetby and 4) lost circulation fluids with reservoir damage. Many of these issues can be managed by reducing mud weight which is easier to do when well control is not such an issue as in a depleted reservoir.

It is wrong to characterise the historical drilling programmes at Saltfleetby as being especially prone to failure. Drilling was conducted between 1984 and 2017 by a number of Operators of varying competence. This being the UK’s largest onshore gas field, a great number of the earlier side tracks were in fact wholly exploratory. Some of the later drilling programmes did encounter problems which (by the common agreement of many specialists present at the time) could have been avoided with a relatively small degree of caution by the then drilling manager.

As we have advised before, this sidetrack has been planned with the benefit of enhanced 3D seismic and the oversight of a great number of independent drilling engineers and specialists. Some of the later side-tracks did not benefit from such oversight.

Angus’ drilling programmes have generally been well executed – albeit with disappointment about the target zone at Brockham and Lidsey. Angus drilled Horse Hill-1 successfully before selling out to partners and drilling programmes at the other fields either did not encounter the sorts of issues listed above or Angus was able to rectify them swiftly.

Was the deal to acquire the remaining 49% of SFB dilutive or accretive for shareholders when you add in all the associated funding?

Thank you. Asked on 30 May 2022
It was massively accretive and not dilutive at all. We acquired the 49%, which by the October P90 valuation was worth c.£25 million, for £14 million. We won’t call it the deal of the century, but it is an outstandingly good deal, especially when you consider that the average forward gas price in that October 2021 CPR has almost doubled today.

It is difficult to do the sums easily, since our own market cap prior to the announcement was only £17.5m (at 1.28p) and barely reflected the October CPR valuation of our 51% interest let alone potential (and now at Brockham actual production) at the southern oil fields. A decent estimate of 100% of Saltfleetby (just on the lower October CPR) and, say, just £10m for the oil fields would yield a value around the £60m mark and give a price per fully diluted share of nearer 2.5p. With current prices, the sky is the limit.

Yes we nearly doubled the number of shares outstanding but, taking into account the price paid for the asset, we more than doubled the value of the company.

Also unlike past placings only a small fraction (4%) of this issuance wss to market participants who might trade out. The rest is either locked up or part of a strategic stake.

Finally the raising of the £6m cash – done to ensure the assent of regulators and lenders – puts the risk of further placings out of people’s minds. Retail should be able to work in this stock with confidence.

Can the company please confirm the sidetrack schedule please. Asked on 30 May 2022
The precise spud date has not been set but is expected to be in the first three weeks of July.

As referenced in a recent interview with George Lucan, if all goes to plan with Saltfleetby is the company still hoping to pay long term shareholders a special dividend? Thanks. Asked on 30 May 2022
Thank you. The new strategic investors are advocating a regular dividend payout policy of 50%. The BoD certainly believe that large reliable dividends are still the best corporate communications that a company can make with shareholders.

Does the company continue to be in discussions with the 2 interested parties in Saltfleetby? Asked on 30 May 2022
We have kept an open line to three participants. Non-binding offers have been tabled but they did not reflect the true value of the asset or were contingent on various milestones being met.

It is one thing to low-ball ahead of proof of success, but to low-ball and make a bid contingent on proof of success seems to be having one’s cake and eating it.

In short we were being faced with the same issue that the old Angus had with Horse Hill – sell out the asset at an undervalue ahead of final proof of success, or press on alone and indeed increase our stake in the asset. On this occasion we chose the latter.

[3put] 21/6/2022 11:43

As referenced in a recent interview with George Lucan, if all goes to plan with Saltfleetby is the company still hoping to pay long term shareholders a special dividend? Thanks. Asked on 30 May 2022
Thank you. The new strategic investors are advocating a regular dividend payout policy of 50%. The BoD certainly believe that large reliable dividends are still the best corporate communications that a company can make with shareholders.

[3put] 21/6/2022 11:43

Can the company please confirm the sidetrack schedule please. Asked on 30 May 2022
The precise spud date has not been set but is expected to be in the first three weeks of July.

[headinthesand] 21/6/2022 11:37

I did sell out at 1p, 3Put.

I still find it interesting that a £6 million placing announced by ANGS via RNS on May 24th thus:-

"To fund the Acquisition and other working capital requirements, the Company has concurrently arranged a direct subscription with affiliates of Aleph International Holdings (UK) Limited ("Aleph") pursuant to which Aleph has subscribed for a total of 546,000,000 Ordinary Shares in the Company at a price of 1.09896011 pence, being £6,000,000 (Direct Subscription) split into an initial unconditional tranche of £3,000,000 and a second tranche of £3,000,000 conditional on Shareholder approval."

...has apparently still not yet been completed, DESPITE it having been confirmed 8 days ago now (again by ANGS via RNS) that shareholder approval had indeed been given for the second tranche of placing.

Why the delay? You don't find that in any way odd?

I honestly wonder whether Aleph and chums are dragging their feet and waiting to see if there'll be a purely emotive minispike which may occur (largely irrelevantly, in the greater scheme of things) with news of first gas?

Speaking of odd and as others have already mentioned, FESL's TR-1 notifying of their ownership of 637 million ANGS shares was informed via RNS on May 30th.

The recently updated ANGS webpage detailing "significant shareholders" investors shows FESL's (current) 23.91% holding (as is to be expected)...

...but that webpage also lists Aleph as a "significant shareholder" with a 7.19% holding...

...so hang on? Where's the obligatorily announceable TR-1 detailing Aleph takign a very definitely notifiable stake?

[3put] 21/6/2022 11:16

Was the deal to acquire the remaining 49% of SFB dilutive or accretive for shareholders when you add in all the associated funding?

Thank you. Asked on 30 May 2022
It was massively accretive and not dilutive at all. We acquired the 49%, which by the October P90 valuation was worth c.£25 million, for £14 million. We won’t call it the deal of the century, but it is an outstandingly good deal, especially when you consider that the average forward gas price in that October 2021 CPR has almost doubled today.

It is difficult to do the sums easily, since our own market cap prior to the announcement was only £17.5m (at 1.28p) and barely reflected the October CPR valuation of our 51% interest let alone potential (and now at Brockham actual production) at the southern oil fields. A decent estimate of 100% of Saltfleetby (just on the lower October CPR) and, say, just £10m for the oil fields would yield a value around the £60m mark and give a price per fully diluted share of nearer 2.5p. With current prices, the sky is the limit.

Yes we nearly doubled the number of shares outstanding but, taking into account the price paid for the asset, we more than doubled the value of the company.

Also unlike past placings only a small fraction (4%) of this issuance wss to market participants who might trade out. The rest is either locked up or part of a strategic stake.

Finally the raising of the £6m cash – done to ensure the assent of regulators and lenders – puts the risk of further placings out of people’s minds. Retail should be able to work in this stock with confidence.

[3put] 21/6/2022 11:16

Given the amount of seismic performed over the last 25 years in the field and the number of bore-holes and side-tracks drilled, providing good offset data, presumably the company and its contractors must be wholly confident of hitting the target zone. Putting that aside, what operational risks exist and could the programme be more complicated or expensive than planned? What lessons have been learned from mistakes by previous drillers in this formation? Asked on 31 May 2022
Thanks. The level of confidence about the target zone is indeed very high. We are addressing an area of the reservoir which was being produced from by an existing well, which was shut in due to a well-bore related issue.

An non-exhaustive list of risks, ever present in all drilling programmes is given in hxxps://www.researchgate.net/publication/317248002_Downhole_Drilling_Problems

Pertinent here are 1) hole collapse – this occurred twice in the Saltfleetby field and both times in the same layer, so we have introduced mitigation measures and will approach this layer with appropriate caution and 2) differential sticking ; 3) loss of bottom hole assembly – this occurred twice at Saltfleetby and 4) lost circulation fluids with reservoir damage. Many of these issues can be managed by reducing mud weight which is easier to do when well control is not such an issue as in a depleted reservoir.

It is wrong to characterise the historical drilling programmes at Saltfleetby as being especially prone to failure. Drilling was conducted between 1984 and 2017 by a number of Operators of varying competence. This being the UK’s largest onshore gas field, a great number of the earlier side tracks were in fact wholly exploratory. Some of the later drilling programmes did encounter problems which (by the common agreement of many specialists present at the time) could have been avoided with a relatively small degree of caution by the then drilling manager.

As we have advised before, this sidetrack has been planned with the benefit of enhanced 3D seismic and the oversight of a great number of independent drilling engineers and specialists. Some of the later side-tracks did not benefit from such oversight.

Angus’ drilling programmes have generally been well executed – albeit with disappointment about the target zone at Brockham and Lidsey. Angus drilled Horse Hill-1 successfully before selling out to partners and drilling programmes at the other fields either did not encounter the sorts of issues listed above or Angus was able to rectify them swiftly.

[3put] 21/6/2022 11:16

Can we please have an update on all the relevant permissions needed for current and near future work. Asked on 14 June 2022
We will answer this question in the ordinary course of our Q&A, but as regards our recommissioning project at Saltfleetby we note that on 22 March 2022 we have already answered this question as follows:

“Angus Energy plc (AIM: ANGS) is pleased to announce that the Environment Agency has issued its Variation Notice for the existing Saltfleetby gas field permit. The site permit now encompasses the new activities of processing and compressing of gas for direct export to National Grid. No further regulatory or planning permissions are required before First Gas.”

[3put] 21/6/2022 11:15

I thought you sold out at 1p HITS?

[headinthesand] 21/6/2022 11:04

As I've commented, there is clearly a delay occurring on the second half of the Aleph and chums placement.

As JA51 points out, the increase in shares in issue to 2,283 million accounts for both the share issue part of the SEL acquisition from FESL and the first £3 million placing with Aleph and chums (although Aleph itself clearly didn't take the entire 273 million shares involved in that first placing - or has already flogged 100+ million off).

But as has also been pointed out, the shares in issue should have risen by a further 273 million by now to 2,556 million (with those extra 273 million presumably all going to Aleph and chums in exchange for a second £3 million).

I wonder what the delay is all about?

[3put] 21/6/2022 10:44

Gas: They are on here 7 days a week spamming it. It is what it is. Nice to see HUR moving.

[jtidsbadly] 21/6/2022 10:32

Yes, JA51 but there’s no specific RNS on the initial Aleph shareholding, as there is of the Forum holding. The TR1 reference is on the company website, where investors and the boiler room seldom look. Why have an RNS for the Forum purchase and not for the Aleph one? We’re now eight days after the second tranche should have been acquired, and no news release. The website page copied in your post is inaccurate in a number of areas too.

[gasman10] 21/6/2022 10:08

Typical boiler room boy ignores posters

[3put] 21/6/2022 10:08

HITS sold out at 1p and is STILL handing out the free advice over on LSE

[3put] 21/6/2022 10:07

Youre the boiler room, negative posts all the time in a share youre not invested in. Agenda???

Gas: They are shorting one of the only shares to go up in a bear market. Clever

[ja51oiler] 21/6/2022 10:03

The website was updated after the first £3 Million JT.....The share price is actually doing pretty well as the next £3 million is at 1.09896011 pence....Do you think people haven't actually realised this?....or do they know it's not going to happen?



Total Voting Rights and Share Capital

The issued share capital of Angus Energy plc consists of 2,283,650,514 Ordinary Shares of £0.002 each with voting rights. No Shares are held in treasury. Therefore, the total number of voting rights in Angus Energy is 2,283,650,514.

Shareholders may use the figure of 2,283,650,514 Shares as the denominator for the calculation by which they will determine if they are required to notify their interest in or a change to their interest in Angus Energy under the Financial Services Authority’s Disclosure and Transparency Rules.

There are no restrictions on the transfer of Angus Energy plc Ordinary shares.
Shares not in Public Hands

The total percentage of shares not in public hands is 12.2% defined as being beneficial holdings of shares held by shareholders holding above 10% and the directors holdings.

Shareholdings in Angus Energy of greater than 3% are as follows:
Name Percentage of Enlarged Share Capital
Forum Energy Services Limited 23.91%
Aleph Fin C Limited 7.19%
Know Properties 4.2%

The above information was accurate as at 1 June 2022 and is based on TR1 notifications received by the Company.

[gasman10] 21/6/2022 09:53

Youre the boiler room, negative posts all the time in a share youre not invested in. Agenda???

[jtidsbadly] 21/6/2022 09:43

Has there been an RNS on Aleph’s shareholding in this? I can’t find one. Not just the second tranche, which they should have acquired as a result of last Monday’s EGM, but the first tranche. How many do they hold now?

I see the boiler room is getting more shrill on the other site. Their most stupid representative is saying that HITS is not respected on this site! Quite funny, really. It can be difficult when you’re in such a minority, HITS, but you’re managing to see them off comprehensively. Any mug punter who believes the boiler room crew has the stronger argument is beyond help and would in due course have surrendered his investable funds in the Darwinian process that is AIM in any case. You can’t help some people.

[3put] 20/6/2022 22:59

Let's have a FRIENDLY sweep for first gas ⛽️
20
21
22 - 3PUT
23
24 - Gasman
27 - TIDY 2 & WG818
28 - Sincero
29 - Shooter
30
1 - Noelpbz
JULY - HITS (Full Production) Shooter (Full Production)
AUG - Chick (Full Production) JA (Full Production)

Regulars yet to vote JT / 1347 / Josh the crypto man

[3put] 20/6/2022 22:57

Josh: Are you going to join the first gas sweep ?

[3put] 20/6/2022 22:56

Let’s remember this asset was valued at £50m when gas was 70p a therm.

£2 a therm atm and a little bit of uncertainty with Russia

[3put] 20/6/2022 22:54

Bear, what?