George Frangeskides, Exec-Chair at Alba Mineral Resources, discusses grades at the Clogau Gold Mine. Watch the full video here.
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Alan... why do you keep quoting 10p per therm! It’s not going to be anywhere near this level this next year... we’re in the middle of a pandemic so you blatantly using the current pricing structure to suit your own Agenda! No one is interested in your constant waffle... do yourself a favour and disappear for another 9 months!!
Betterupthandown - So are you saying the CPR is tripe are you just haven't read the full CPR. I'm quoting from the CPR albeit Gas instead of Oil
"AEWB is carrying a range of capital cost estimates to achieve First Gas before January 1st, 2021. Table 6-1 refers: Low: £1.83m, Most Likely: £2.79m; High: £3.81m, of which £2.5m is payable by Saltfleetby Energy"
So yes Angus will be £290,000 short...I hope that explains it for you.
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
Do not believe Alan 2017 - he's on here for some purpose having "disappeared" for the best part of 9 months without a single post on here or on UKOG. (oddly at exactly the same time as Heid re-appeared over on UKOG)
All of a sudden he's back - sighing and bs ing a little bit of oil field knowledge and trashing employees who can't hit back.
Avoid!
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.
http://www.angusenergy.co.uk/wp-content/uploads/2020/03/Saltfleetby-Gas-Field-Competente-Persons-Report.pdf
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 An average price of 50pence/therm for calculating is out of date with a current price of 10pence/therm and the near future looking bleak.
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
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
http://www.angusenergy.co.uk/wp-content/uploads/2017/02/RNS-Angus-Energy-Fundraising-and-Acquisition.pdf
The cash at bank equates to current market value. oil and gas projects are worth a minimum of £10 million between them .
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:
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
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.
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.
http://www.angusenergy.co.uk/wp-content/uploads/2020/03/Angus-Energy-PLC-Annual-Report-2018-2019.pdf
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.