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(Alliance News) - Angus Energy PLC on Friday said it was benefitting from strong gas prices as its production averaged 80,000 therms per day in June.
The UK-focused oil and gas development company reported it averaged production of 80,000 therms per day in June and 92,000 therms per day in the first 18 days of July.
As of July 1, the firm's daily hedged volume reduced to 50,000 therms per day until July next year when it reduces further to 21,666 therms per day.
Consequently, Angus is now producing "significantly" above the hedged volumes and is benefiting from strong gas prices. It is expected that this production will be maintained at 90,000 to 95,000 therms per day over the next quarter.
With current prices and after hedges, Angus said it generated gas revenue of GBP1.7 million in June.
Looking forward, Angus said it expects that the winters of 2023/2024 and 2024/2025 will present the possibility of price spikes as "geopolitical tensions and the potential for cold snaps remain". As a result, the company has reduced its future hedge exposure.
Angus has now unwound 50% of its hedge position in the second half of 2024 and the first half of 2025. It has also agreed to settle some volumes at fixed prices from the third quarter of 2024.
The company also announced on Friday that it has closed the GBP6 million junior debt facility with Aleph Finance Ltd, an associate of the company's substantial shareholder, Aleph Commodities Ltd.
Shares in Angus Energy closed down 0.9% at 0.92 pence in London on Friday.
By Heather Rydings, Alliance News senior economics reporter
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