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Angus Energy Regulatory News (ANGS)



Regulatory News for Angus Energy (ANGS)


Share Price: 6.25Bid: 6.00Ask: 6.50Change: 0.625 (+11.11%)Riser - Angus Energy
Spread: 0.50Spread as %: 8.33%Open: 5.625High: 6.75Low: 5.625Yesterday’s Close: 5.625





Agreement to acquire 25% of Balcombe Licence

Mon, 22nd Jan 2018 07:00

RNS Number : 4635C
Angus Energy PLC
22 January 2018
 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION EU 596/2014 ("MAR").

 

                                                                                                                                    22 January 2018

Angus Energy plc

("Angus Energy" or the "Company")

Angus Energy Agrees to Acquire a 25% Interest in the Balcombe Licence (PEDL244)

 

Company to form new partnership with Cuadrilla and Lucas

 

Angus Energy Plc, a conventional oil and gas production and development company, is pleased to announce that it has entered into a definitive agreement to form a new partnership ("Partnership") with Cuadrilla Balcombe Limited ("Cuadrilla") and Lucas Bolney Limited ("Lucas"). Subject to satisfaction of the terms of the agreement, the Company will join the partnership through the acquisition of a 25.0% interest in licence PEDL244 (the "Acquisition") which includes the entire Balcombe Field discovery.

On behalf of the partnership, Angus Energy will, subject to Oil and Gas Authority ("OGA") approval, assume Operatorship of the Balcombe licence. The Company will commence a fully approved well test program of the Balcombe-2Z horizontal well at the earliest opportunity. Angus Energy will also establish a local Community Liaison Group and contact local residents, at the appropriate time, before work commences.

Under the terms of the agreement, Angus Energy will pay a cash amount in two parts as set out below along with the costs of the well test program of Balcombe-2Z. If the results of the well test are determined successful, the Company will assume the associated costs of a Field Development Plan ("FDP") submission to the Oil & Gas Authority ("OGA").

The Acquisition has been unanimously approved by the Board and will require additional sources of capital. Accordingly the Board is reviewing several financing options and is in the final stages of selection. An update will be provided in due course.

All operations at Balcombe will be performed through conventional production. There will be no hydraulic fracturing or "fracking".

 

Terms of the Acquisition

Under the terms of the Acquisition, Angus Energy Weald Basin No.3 Limited, a wholly owned subsidiary of Angus Energy, has conditionally agreed to acquire the 25% interest in PEDL244 on a pro-rata basis from Cuadrilla and Lucas (the Sellers) on the following terms. The current ownership of PEDL244 is 75% Cuadrilla and 25% Lucas:

·     Pay within 20 working days of 20 January 2018 £2,000,000 less £150,000 already paid under a confidentiality agreement with the Sellers;

·     Pay £2,000,000 following consent from the OGA for the Acquisition; and

·     Carry out and pay for the well test of a horizontal well test program of the Balcombe-2Z (the "Well") to achieve the following objectives:

Measure the Well flowing production rates for oil and natural gas;

Measure flowing bottom hole and wellhead Well pressures;

Determine the gas oil ratio (GOR) of production from the Well;

Collect and analyse Well oil, gas and water samples; and

Measure and record Well shut-in bottom hole pressure over approximately one month.

 

Should the OGA not approve the Acquisition, the initial £2.0 million payment is refundable.

The Company notes a fully approved test program of Balcombe-2Z Well will require minimal preparation as the Well is drilled and ready for testing.

PEDL244 has been operated on a care and maintenance basis since 2013 with no production and limited costs. There are no assets, other than the Licence interest, associated with the Acquisition and the only liability is a restoration liability estimated at a gross amount of circa £200,000.

The Partnership of licence PEDL244 assuming completion of the Acquisition and following consent by the Oil & Gas Authority would be as follows:

 

Cuadrilla Balcombe Limited

56.25%

Angus Energy Plc

25.00%

Lucas Bolney Limited

18.75%

 

 

Paul Vonk, the Company's Managing Director, commented:

 

"This transaction complements our existing asset base and aligns with our goal of enhancing shareholder value. This joint venture is an important milestone as we execute our business plan. Both the new partnership and Cuadrilla's and Lucas' recognition of Angus Energy's ability to manage and execute operations in a safe and efficient manner at Balcombe are gratifying to our entire team.

 

We are also looking forward to the near term testing of Balcombe-2Z horizontal well as it will further add to our knowledge base and understanding of the Kimmeridge layers. "

 

Francis Egan, CEO of Cuadrilla, said:

"Following the approval of our planning application to flow test and monitor the existing horizontal exploration well at Lower Stumble we are delighted to form this new partnership with Angus Energy, an existing and successful operator in the area. This agreement will enable the testing works to be undertaken in a timely way and to the highest standards, whilst we continue to also focus on our shale gas operations in the North West."

 

Balcombe Licence - PEDL244

 

Highlights:        

·     Balcombe licence positioned in the centre of the thickest section of the Weald Basin's Kimmeridge Clay

·     568 meters of Kimmeridge Clay penetrated by Balcombe-1

·     The Balcombe-2Z horizontal well has ~1600 ft. of the Kimmeridge Upper Limestone.

The Balcombe field is located within exploration licence PEDL 244, approximately 8km south east of Crawley near the village of Balcombe. The conventional oil accumulation lies on the downthrown side of the Borde Hill Fault, with dip closure present both to the east and west at Upper Jurassic level. The field is positioned in a prime central location of the Weald Basin, where buried rock intervals are at their thickest, and oil source rock intervals at their most mature.

The discovery well Balcombe - 1 was first drilled in 1986 by Conoco, targeting the Great Oolite, Portland Sandstone and Kimmeridge limestones. Approximately 568m of Kimmeridge Clay was encountered in the well, including thick micritic limestone layers. Balcombe - 2 and its associated side track Balcombe-2Z completed drilling in September 2013 to a vertical depth of 2,200 ft, and horizontally through the Kimmeridge Upper Limestone to a length of some 1,714 ft.

Further information is available on the company website:

www.angusenergy.co.uk/media/presentations 

 

Qualified Person's Statement:

Chris de Goey, a Non-Executive Director of the Company, who has over 20 years of relevant experience in the oil and gas industry, has approved the information contained in this announcement. Mr de Goey is a member of the Petroleum Exploration Society of Great Britain and the Society of Petroleum Engineers.

END.

About Cuadrilla

Cuadrilla Resources is a Lancashire based company which aims to lead best practice for unconventional hydrocarbon exploration in Europe. It is acutely aware of the responsibilities this brings, particularly with regard to safety, environmental protection and working with local communities.

For further information and media enquiries please call the Cuadrilla press office on 0800 9012 494 or press@cuadrillaresources.com or visit www.cuadrillaresources.com

About Lucas Bolney Limited

Lucas Bolney Limited is a 100% subsidiary of AJ Lucas Group Limited (Lucas). Lucas is a specialist service provider to the energy, mining and infrastructure sectors. In each market, its multi-disciplined teams have earned a reputation for innovative solutions and reliable project delivery. For further details on Lucas, please see the following link: www.lucas.com.au

 About Angus Energy plc.

Angus Energy plc. is a UK AIM quoted independent onshore oil and gas production and development company focused on leveraging its expertise to advance its portfolio of UK assets as well as acquire, manage and monetise select projects. Angus Energy majority owns and operates conventional oil production fields at Brockham (PL 235) and Lidsey (PL 241) and has a 12.5% interest in the Holmwood licence (PEDL143). For more information please see the following link: www.angusenergy.co.uk

Enquiries:

Angus Energy Plc


Jonathan Tidswell-Pretorius / Paul Vonk

Tel: +44 (0) 208 899 6380



Beaumont Cornish (NOMAD)


James Biddle/ Roland Cornish

Tel: +44 (0) 207 628 3396



Optiva Securities Limited (BROKER)


Jeremy King/ Ed McDermott

Tel: +44 (0) 203 137 1902



Yellow Jersey


Tim Thompson

Tel: +44 (0) 203 735 8825

 

 

 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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Related Shares:
Angus Energy (ANGS)




DateSourceHeadlineCategory
13-Jul-18 16:13RNSHolding(s) in CompanyHolding(s) in Company
13-Jul-18 13:12RNSUpdate on issue and allotment of ordinary sharesCompany Announcement - General
06-Jul-18 07:00RNSBoard ChangesCompany Announcement - General
04-Jul-18 08:31RNSIssue of EquityCompany Announcement - General
04-Jul-18 08:05RNSPDMR Shareholding UpdateDirectors' Dealings
29-Jun-18 14:45RNSDirector/PDMR ShareholdingDirectors' Dealings
29-Jun-18 14:05RNSSecond Price Monitoring ExtnCompany Announcement - General
29-Jun-18 14:00RNSPrice Monitoring ExtensionCompany Announcement - General
29-Jun-18 13:28RNSHalf-year ReportResults and Trading Reports
21-May-18 10:17RNSOGA Approves Angus for Balcombe OperatorshipCompany Announcement - General
18-May-18 16:40RNSSecond Price Monitoring ExtnCompany Announcement - General
18-May-18 16:35RNSPrice Monitoring ExtensionCompany Announcement - General
18-May-18 14:05RNSSecond Price Monitoring ExtnCompany Announcement - General
18-May-18 14:00RNSPrice Monitoring ExtensionCompany Announcement - General
10-May-18 11:50RNSAcquisition of 25% Interest in Balcombe CompletesMergers, Acquisitions and Disposals
01-May-18 18:11RNSTotal Voting RightsHolding(s) in Company
25-Apr-18 16:11RNSIssue of Convertible SecurityCompany Announcement - General
25-Apr-18 11:00RNSAngus Receives Retention Approval For Lidsey FieldCompany Announcement - General
23-Apr-18 13:22RNSAngus Completes Funding For Balcombe AcquisitionCompany Announcement - General
18-Apr-18 10:10RNSResponse to Media SpeculationCompany Announcement - General
29-Mar-18 11:11RNSResult of AGMResults and Trading Reports
29-Mar-18 08:00RNSResumption of production at Lidsey and BrockhamCompany Announcement - General
07-Mar-18 15:05RNSAnnual Financial Report and Notice of AGMResults and Trading Reports
16-Feb-18 07:00RNSFirst Stage of Balcombe Partnership CompletedCompany Announcement - General
09-Feb-18 16:35RNSPrice Monitoring ExtensionCompany Announcement - General
09-Feb-18 11:00RNSPrice Monitoring ExtensionCompany Announcement - General
09-Feb-18 07:00RNSAngus Energy Completes £2M Private PlacementCompany Announcement - General
22-Jan-18 07:00RNSAgreement to acquire 25% of Balcombe LicenceCompany Announcement - General
15-Jan-18 10:30RNSAngus Energy Brockham and Lidsey updateCompany Announcement - General
01-Dec-17 15:07RNSTotal Voting RightsHolding(s) in Company


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