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What I meant by settlement terms is in what proportions the payments for the kit will be staggered?
Alan2017 tells me it's in the CPR, so my question is apparently redundant.
Lancs - It doesn't tak a great deal of effort, from the last interims it's £1.592,000 / 6 (months) which is £256k per month. That is each month this lot are spending more that the entire revenue for a year.
Ocelot - its in the CPR...if you've read it.
Thanks for a sensible reply.
I had a good look at the CPR report and it doesn’t list any lease costs even though there is a column listed so being they are also talk of purchasing second hand I assume they would have to pay cash especially in these trying times.
Is there another possibility?
LancashireLife - you do realise you've just contradicted yourself lol How on earth can you say its way too high when you haven't even look....sigh.
"Pretty sure that cash burn figure is way too high. I’m not going to spend anytime going through docs to determine true cash burn though"
What will be the settlement terms for the kit they are aiming to install in Q4?
A question if I may?
So from the half year accounts Angus had £2.59 million in cash. Add to that the £1.4 million from Knolwle that’s just under £4million.
Looking at the accounts from previous years and the figures from the half yearly they have a cash burn of approx €250.000 per month? So that’s £750,000 gone approx to today's date?
Looking at previous RNS’s £650,000 is ring fenced for Brockham and Lindsey shutdown. They also have the CLN repayment and payments due shown in the half yearly.
That leaves about £1.5 million . With at least 4 months until gas pipeline completion and with the associated cash burn
Can I ask for opinions on how they intend to pay for the forthcoming Saltfleetby works let alone Balcombe.Brockam or Lindsey?
Appreciate any explanations as I’m a bit confused!
I have not seen any calcs to debate. Would be good to see anything as about to unwrap an egg salad roll for this afternoons session
Michael - I may have missed it, but has LancashireLife said why he has invested in Angus for Brockham? What does he know that the OGA / Annual accounts don't state?
Michael: me too. 0.24p still the target for August, innit? Have i got that right? It’s confusing, this company. Thank goodness the shareholders have got this excellent Board looking after their interests. I’m not sure that the concept of profits holds any meaning under triple entry bookkeeping. And who cares, when losses are so valuable? I’m impressed with Ocelot’s positive stance. Let’s get the price up.
So the more water they produce...the bigger the share value due to higher losses? Genius
Another 300k to add to that mcap. Gift that keeps giving.
Im worried this wont get back to my buy in let alone profits!
Ratuss I am here for serious debate and think ocelot is not taking this seriously as you and I. Im here to make money next month so have a keen eye here as other shares are being a little dull.
Is profit actually even important here?
Highroller - "...your comment a pleasant surprise may be Brockham production from the portland. it should produce as much as ukog." is misleading on many fronts.
How many decades has Brockham been producing for compared to HH?
What was the average bopd at Brockham?
How many barrels of water was being produced at Brockham?
"Prior to being shut-in in January 2016, the Brockham and Lidseys fields were producing at a net 20bopd to Angus."
Brockham was producing 1,000bbls of water per month before it was converted in 2016. Where do you suggest the water can go without being trucked considering Angus cannot use their water injection well...hence why water is being trucked at Lidsey.
1,000bbls x £49 = £49,000 a month and what is Angus % of Brockham? 55% is it?
I will let you do the maths to work it out over a year, but its a huge amount...over £300,000.
Michael: I think you’re being a little hard on Ocelot. He’s valued the losses at 1.16p per share. The rest is gravy, whether it’s profits or losses, surely? I don’t suppose anyone on here takes a calculation of a positive enterprise value for Saltfleetby seriously. Think of the value of the losses though.,
I’m thinking of NMC here. I dare say the Earl of Clanwilliam is too - he could make a lucrative comeback. Once they’ve crystallised the losses and the banks may have made their write-offs, think of the value of the tax losses. I hope the current NMC shareholders don’t get robbed by the administrators of their rightful windfall.
This is misleading and several wise people have explained at great length why. Your excuse of this isnt a valuation could be classed as deceitful as people like me would take that at face value and buy. Its agreed as complete nonsense by several esteemed posters here. It would be helpful as a footnote to say you dont have any knowledge, qualifications or experience in aim valuations as per your own admission last week.
Alan2017: thanks for this too. A timely reminder that it’s all about the losses now. Luckily they have the ideal people in place to optimise these. “Cometh the hour, cometh the man” - to quote Jonathan.
Ocelot: congratulations. You were the first to identify the value here. Rem acu tetigisti. See what spellcheck makes of that.
Regarding the exorbitant increase for rent well the old days Angus just had a virtual office.
Angus now use the address Audley House, 13 Palace Street, SW1E 5HX which is nice if you need to borrow sugar from the Queen, but is it really good management to being paying such high prices for smack bang in the middle of London? George and the ex-interns could meet at a Starbucks.
I would imagine the Scottish address is just a virtual office or mailing address for the Scottish registered company.
Losing £400,000 in rent and a pay reduction of 20-30% equating to £200-£300,000 actually makes Angus a more viable company to survive Covid-19....your savings pay for 1 years salary (well thats before all the additional consultants are factored in...but at least its a start in the right direction).
gkb47 - Yes the £200,000 revenue at Lidsey does paint the whole story.
Sadly Lidsey revenue in 2019 at an average of $63 gave Angus very little, so imagine what will 2020 show with Corvid prices and the fact they have shut in the Field for maintenance and to heat some homes.
Lidsey Field produced a total of 1,941 bbl of water for the whole duration of 2019.
Lidsey Field produced gross 5,346bbl of oil for 2019.
On slide 8 of the Angus Presentation costs water disposal at £49/bbl.
Sadly Lidsey is unable to dispose of its water at Brockham, so has to truck the water up North.
1,941bbls x £49/bbl = £95,000
Angus has 80% of Lidsey so:
£95,000 x 80% = £76,000
Lidsey made £200,000 in revenue at an average 2019 Brent price of $63 (that is before tax, expenses are deducted), so minus £76,000 leaves £124,000).
Angus have pre-agreed lease hold agreement for the Lidsey field of circa £40,000 per annum (2016 price) which leaves £84,000 left in the cookie jar. BUT don’t forget the Scholarship fund that also takes a big chunk out of that plus Angus still have to pay tax (if applicable) , expenses on the original £200,000 of Oil revenue, so its virtually £0.
Page 51 - Oil Revenue (pre tax, expenses etc).
Page 52 - Lease requirements
gkb47: many thanks indeed for this clarification. I see, a useful housekeeping exercise on the part of the Angus Board. Thank goodness they got rid of all that dead old when they cleared out the people with oil and gas expertise and got some proper finance men in charge - albeit on a stopgap basis. They’re still paying audit fees on all these though, aren’t they? I believe Angus Energy, the listed entity, covers the cost. Excellent additions to their valuable losses.
Rastuss - that's AWB No 1 but it doesn't own AWB No 2 anymore. However AWB 2 still owns AWB 3 but isn't owned by AWB No 1. as it's now owned by Angus Energy Plc. AWB No 1 is owned by Angus Holdings, which in turn is owned by Angus Energy Plc but AWB 3 isn't. Hope that's cleared it up, quite straight forward really.
Michael: doesn’t the Board’s commitment to apparently premium office space in Edinburgh tend to demonstrate their confidence in the company’s long term future? No point in spoiling the ship for a halfpennyworth of tar. Also, these substantial additions to the operating company’s already enviable losses are doing our job of getting the price up admirably, surely? These valuable losses seem to me to be the shareholders’ best hope. Forget Lidsey..
Well, that was a horlicks. Trying this:
gkb47: thanks again. I don’t know bout all this stuff, as you know. What’s this?
Net assets at 31/03/20: 2.07p per share (£11.116m)
Net present value at 01/01/20 of the Saltfleetby CPR mid-case forecast (p53): 4.69p (£25.2m)
Even before we receive further updates re the progress of Saltfleetby and Balcombe, a case can be made imho for ANGS to be valued in the 2.50-4.00p range.