George Lucan, Managing Director of Angus Energy told London South East that the 51% holding of Saltfleetby gas field has been 'transformational' for the company and expects to see both gas and oil revenues produced before the year-end.
Angus is now a much derisked company focused on production and delivery he said. "Saltfleetby was a big risk risk at first but particularly with the Competent Persons Report published last week we have derisked it." "There is £130M worth of recoverable gas in the Saltfleetby field of which we get half. We reckon after costs and CAPEX we get just over 50M quid over the next ten years", said George Lucan.
"This amounts to £3/4 million of revenues net of costs." "I don't worry about getting the field connected to the National Grid or getting the small processing plant built, rather my focus is on getting the gas flowing well over the ten year span of the project, which means buying the right compression kit etc to make that happen".
Meanwhile at the 25% owned and operated Balcombe Field in the Weald, a vital West Sussex County Council planning meeting takes place on 24 March 2020. The hope is that permissions are granted to extract and produce, essentially for work to continue and for a Three Year Well Test to be completed as initial oil is extracted from the Kimmeridge reservoir.
George believes this will flow at a sustainable average of 300 bpd, well above the commercially viable rate of 75 to 100 bpd, delivering revenues by the end of 2020. He concluded by telling us: "I have to say we have a preference for gas now. In terms of sustainability we will have a longer term future with gas than we will with oil."
Angus Energy (ANGS)