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You are talking absolute tripe - you say' Angus have predicted it will cost £2.79million to get to first oil, so deducting the £2.5 million leaves them £290,000 short.'- This is a gas field!!!!!!!!!
What an absolute numpty.
Also posters quoting £50 million is misleading as its for the entire project without tax and expenses being deducted and most importantly Angus only has 51% share.
Also take note of Page 4:
Which shows the value to Angus after tax for 10 years of production, but with a 50pence/therm calculation rather than the current 10pence/therm.
Michael - In the short space of time that the Saltfleetby CPR has been compiled the world has hit an economic disaster through Corona. Valuations being quoted by posters are redundant due to to Corona. An average price of 50pence/therm for calculating is out of date with a current price of 10pence/therm and the near future looking bleak.
On Page 10:
“It is emphasised that legislation, taxation and commodity-price forecasts can be subject to significant change even in the short term and that any of these could have a significant effect on the NPVs presented in this valuation report.”
On Page 46:
Angus have predicted it will cost £2.79million to get to first oil, so deducting the £2.5 million leaves them £290,000 short.
A sidetrack is planned Q1, 2021 and it is costed at £2.36million (which is a perfect well and no issues encountered).
Angus share of the costs (51%) = £1.2million
Angus also have circa £1million salary costs.
On Page 47:
Saltfleetby has annual costs for:
Fixed Opex inc Equipment Lease Costs @ £1.39million
G&A (Field, and Head Office allocation) @ £0.52million
Applying the 51% gives Angus £0.97million
Now that takes us to £3.46 million a year without other costs such as paying the land owners a fixed cost for the other sites and highly expensive Consultants that still need to be brought in.
Angus made £200,000 gross from oil revenue, but the loss for the Company for the year ended 30 September 2019 was £8,414,000
Angus also has a contractual commitment to paying up to £1 million for drilling Holmwood-1 well.
And Angus also have to pay for the Abandonment at Saltfleetby which by their calculations is £2million
short term and long term indicators becoming firmly positive.
As news drop, the rating will be strong buy.
The cash at bank equates to current market value. oil and gas projects are worth a minimum of £10 million between them .
Mirasol - I said back in December 2019 (please feel free to check my post) that the dates for June 2020 could not be met and Q4, 2020 would be the earliest for Saltfleetbury. Which has been proven to be correct. Due to Corona and slow progress I have said the earliest is February / March 2021 factoring in the Holiday period (again please read my historical posts).
The lack of experience would effect any company in any industry. And with regards to your question, all you have to do is look at an Oil companies website and look at their Directors wealth of Oil and Gas experience. For instance Union Jack Oil.
Greenfish - seems my previous response was removed. Lets see if the facts can speak for themselves.
Good question which I asked on here last week. I suggest you use the Investor Forum to put that to George Lucan.
I previously wrote:
What is the up date with finding a MD with Oil Industry Experience as promised? George Lucan was brought in by Jonathan Tidswell.
“George Lucan will act as interim Managing Director pending the Company's continuing search for a permanent appointment with industry experience to develop the Company's business beyond its current core strategy.”
Table 6-8 presents the mid-case forecast:
Total AEWB (ie Angus) pre-tax future net revenue: £50.5m
Total post-tax net present value at 10%: £25.2m
FYI, the CPR provides you with a higher figure for Saltfleetby than Jamesthe second's and a methodology:
Yes but how did you value it at £10m? Is that based on revenue per year, profit? Just so I understand my numbers. Im confused at how some are mentioning £50m but that isnt the mcap? Sorry if im asking silly questions but always good to have some expert advice
I value the gas project at £10 million and all of oil projects at £5 million after taking into account £4 million plus cash in bank.
Thank you, it is nice to have people here that are helpful. Can I ask how you got to the 15m valuation for the company as that would be very interesting.
The CPR on the gas is available at the company website -
http://www.angusenergy.co.uk/wp-content/uploads/2020/03/Reserves-Resources-Valuation-Report-Angus-Energy-Saltfleetby-Assets-Effective-Date-28th-February-2020-Report-Date-4th-March-2020.pdf Suggest that you read and make up your own mind.
The company is adequately funded unlike UKOG which will be issuing more shares for the foreseeable future.
The company annual report provide good history/background of oil assets.
Have a good read. The oil flowed at Balcombe but they messed up the drill. My summary is that the share price is bombed out due to past failures but its recovering as new management is delivering on all fronts. For seeing progress please read the the company operational update at end of April. It will tell you where the company is standing at present and what to expect. There are many old disgruntled shareholders here sprouting venom as they have been burnt from the previous dizzy share prices . They fail to accept that oil exploration and extraction are risky. However, IMHO the realistic value of the company should be closer to £15 million (3pence) and should increase as the company delivers.
I reiterate that you should research and own your decision. Its your money and your decision and you must not follow any advice on a BB.
The audio recording of the conference call of 06/05 is still on the website, under media, videos.
If you have the time, why not listen to that?
Am I right in thinking this document doesnt say Angus has much, but they believe it to be similar to ukog as it is 8km away which produced 1600 barrels over a few hours? Im also confused as UKOG isnt producing that much, but why doesnt Angs match what UKOG does as they said sustained flows?
Sorry for questions it is confusing. However that was years ago so what are they producing today? Im also looking at posters saying this is worth £50m (which is what caught my eye), but poster alan is saying they get 1.7m a year, but have 2m costs so would be running a loss? Is that 1.7m a year at a therm cost of 50p or at 10p? Surely if prices are now 80 percent less, they wont get 1.7m? But I must be stupid because the price has rocketed and people are expecting 4p price?
Much obliged for help in my research.
Stock price today is 49.50 were did you get your figures from
Only one I'm aware of is in Part III of the AIM Admission Document Part III. You should also check out how they went.
Do we have cprs for lidsey and brockham? What did that say? I cant see it anywhere. Apologies for being an amateur
We absolutely need an MD with a historic track record in the Oil and Gas sector.
GL is a good financier I'm sure,but it must be a really steep learning curve for him understanding the technical complexities of oil extraction .
i would not listen to anyone on BB including myself. do your own research and make up your own mind?
Alan where did you to disappear from here and why last year?
Unless you can prove the experience levels at other companies, and that it makes them a better investment (UKOG? Europa??) I suggest you lay off the staff as well.
The conservative scenario is for 10 years, the optimistic case is for 12 years.
Are you saying this is loss making over 10 years? Im confused as to what the facts are because some people here think this could make a lot of money quickly but other posters seem to think it is bad.
I have some money to invest but the negatives have put me off.
Saltfleetby projected for 10 years....the effects of Corona which we haven't seen the full effects of discounts from the likes of the Qataris and the lower pence/therm than Angus have calculated pushes this projects value South.
Does Angus keep the wells closed in and wait for the price to rise? Or they will have to pump the gas and sell it for what they can for a lower price.
Angus were only getting £17 million for 10 years at 50pence/therm average. Their annual salary is close to £1 million. Equipment / office rental per annum is circa £2 million to be divided, so thats another £1 million. Has that been deducted prior to the £17 million to Angus?
Does anyone know when we get a permanent MD with oil and gas experience. I thought the current one was only temporary?