London South East spoke to George Lucan , MD at Angus Energy (ANGS), and George gave us some invaluable context to the Saltfleetby and Brockham RNS's which have been released by #ANGS in the last month or so.
He said that of the 6 gas wells at Saltfleetby, 2 wells will be producing First Gas in May at a rate of approximately 1.5 million therms per month. The remainder are candidates for sidetracks and/or geothermal projects.
"We are also sidetracking one well which by itself will be producing a further 1.5 million therms. Contractors have advised a date of late June, followed by a window of 30/40 days for drilling and then tidying up before the flow date in August."
"With that on stream we would expect to pay down all capital debt by the end of the year, the calendar year, gone from the balance sheet. That gives you a sense of the gas price and the potential of the field."
When pushed about whether the Saltfleetby assets were to be sold or kept, George explained that everything remained under Takeover Panel rules and he wasn't allowed to say much other than "We are continuing to be in discussions with parties."
If the assets are kept, some funds would be returned to holders via an in specie special dividend or a share buy back programme. The caveat to all this of course is: "to the extent we are not involved in some corporate action, which as you know is pending".
"The one thing I can add" said George, "Is that as a board we have worked so hard for this we are not about to give this away for 'a song' as some shareholders may be concerned. We will drive the hardest bargain that we can in this environment."
Angus Energy (ANGS)