Member Info for Alan2017

*my February / March 2021 for First Gas

I do wonder with 80 years of oilfield experience that Angus would have published a timetable with unachievable timings. As I said in December 2019 there was no way they would be producing gas in June 2020 and now the posters who were questioning my February / March 2020 for First Gas have now come around....as well as it seems with respect to Angus not having enough money to get to the finishing line which was self evident after you tallied up their financial commitments.

I note Lucan evades the finance question. Where has all the money gone and who is going to loan money to Angus except Knowe. We already saw in 2019 AIM companies struggling to raise capital and Angus is sadly at the bottom after borrowing so much. They can't pay off their debt without the loan company exchanging debt for shares or Knowe properties coming to the rescue.

Slide #10

NTS Detailed Design, Equipment Procurement, Construction

Start Date: Mid November 2019
Completion Date: Mid April 2020
5 months

Yet Angus RNS paints a different picture

“…the National Grid has agreed to carry out the works required for the DESIGN and CONSTRUCTION of National Grid Facilities at Theddlethorpe. Long lead items have been ordered and construction remains in line with our project schedule.”

http://www.angusenergy.co.uk/wp-content/uploads/2020/07/Opertaions-update.pdf

Other missed schedules:

Pipeline Detailed Design + Construction/Laying

Start Date: Start October 2019
Completion Date: Start May 2020
7 months

Well we can remove the majority of the Design phase timings, yet still have to go through HSE approval which hLucan said by September…..
Pipeline Pigging & Commissioning

Start Date; Start of May 2020
Completion Date: Start of July 2020
2 months

Processing Facilities Design Procurement

Start Date: 3rd Week of January 2020
Completion Date: First week of April 2020
2.5 months

Facilities Installation & Commissioning

Start Date: 3rd week of March 2020
Completion Date: Mid June 2020
2.75 months

PRODUCTION TARGET
Target start up for MAY - AUGUST 2020

http://www.angusenergy.co.uk/wp-content/uploads/2019/12/Saltfleetby-Gas-Field-Dec19.pdf

gkb47 - have you seen another Managing Director give that sort of interview before?

Then again, Lucan couldn't pronounce the name of the well established, much respected multi-national company Conoco. I thought he said he had experience with large oil companies?

1min 35 secs…..its pronounced Con-O-Co….not Con-OOOOO-Co

https://www.youtube.com/watch?v=8CffIyVIGoI

Continued Part 3

This helps to explain all the issues at Brockham, Lidsey and Balcombe that have added more than 2 years onto projects through an inability to do things correctly which has resulted in multiple meetings with the OGA / Local Authority to explain why they drilled from the wrong well, not ordering critical spare parts delaying well tests for 3-6 months and closing a testing permit which means yo halve to start from scratch.

And we must end up with Lucan stirring speech to rival Churchills’ We shall fight them on the beaches.

@15min 43secs - GL: IT’S NOT OIL TOURISM
ITS NOT OIL PICK UP YOUR LAUNDRY
ITS NOT OIL VISIT YOUR GRANDMOTHER
ITS OIL EXPLORATION

Just imagine if he had got a First in English….speaking of which…Degree in English and walks into a City job doing Finance?!?! Thats worthy of a novel.

Continued Part 2

@16min 44sec - Malcy: “Where about do you have planning permission problems?”

GL: Balcombe, we ran into Planning Officers recommendation to refuse…….He was doing that very much on Political Grounds.”

No this is totally incorrect. What George fails to mention in this interview is that Angus informed WSCC that there would be no more testing at Balcombe, so the Council closed the testing permit. By doing that, Angus now have to start from scratch and the field has changed. By sheer incompetence they have again delayed a well testing project. Remember the 7 day well test was finished on 7TH OCTOBER 2018….this is the corporate equivalent of shooting yourself in the foot.

@20min 26secs - GL: “We don’t have a fancy office in Mayfair.” But Angus does just round the corner from Buckingham Palace….why does he fail to mention that I wonder?

How many guys have suddenly been added to the wage bill? It was already above £1 million?!?!

And still Angus staff / directors haven’t taken a pay cut like all other companies (Shell, Total) ? Some posters have called this a Lifestyle Company in the past….they don’t seem to help themselves ,so they have with a detachment from their Investors.

@22min 32sec - GL: “They have [compliance officers] been rebuilding our entire compliance infrastructure, and we need that. We were set up some extent as a wonderful COWBOY EXPLORATION SHOP, had great fun.”

“Now we’re actually managing high pressure gas, its a different game. There is a lot more planning, a lot more regulation and you need management infrastructure.”

“YOU CAN’T BE SO ANGLO AMERICAN IN TERMS OF PLAYING OIL & GAS.”

“We were set up some extent as a wonderful COWBOY EXPLORATION SHOP, had great fun.” Raised £25 million since IPO and have paid out some great salaries for achieving £200,000 of oil revenue in 2019…….

“They have [compliance officers] been rebuilding our entire compliance infrastructure, and we need that.” What happened to all that in-house management expertise and Andrew Hollis BG experience with 40 years in the oil game Where was the Chief Technical Officer then? Where was the Business Director (Tidswell) during the time when he was earning £120,000 a year plus share options?

“There is a lot more planning, a lot more regulation and you need management infrastructure.” My question to an interim MD who has no previous oilfield experienced, as stated by Angus RNS, is how would you know George? Lucan lets the cat out of the bag (or was it ever in there?) by stating what the true experience of Angus Team really was.

@39 secs - GL: “Angus floated back in 2016, with a range of assets down in Kent..” WRONG. Really George…Kent? I think you need to check your facts there. Angus has never had assets in Kent

“And very much with a view to exploiting the Kimmeridge reservoir across the Weald Basin”.

Slide 4 of IPO Presentation shows Lucan is WRONG on both counts.

http://www.angusenergy.co.uk/wp-content/uploads/2016/11/Angus-Energy-IPO-Investor-Presentation.pdf

@1min 11secs - GL: “one of the decisions I took was to diversify slightly away from exploration and into production and last year we acquired a formerly producing gas asset, which was once the largest onshore UK gas field and that had been stranded.” Once again Lucan is WRONG, as Angus have been promoted from Day 1 as not being an Exploration company, but a Producer / Development Company, hence the title of the above presentation

“Proven UK Operator, Producer and Developer
IPO INVESTOR PRESENTATION NOVEMBER 2016”

@1 min 42 secs - GL: “we’ve moved away from being a pure exploration [inaudible] into a more diversified oil and gas proaction company.” WRONG again George….Angus have had 2 producing oil fields at Lidsey / Brockham since before IPO.

@2min 3 sec - GL: “We have a preference for cash production assets.” The exact same thing was said about Lidsey / Brockham Portland wells….Deja vu.

Slide #6: “build cash flow from existing asset base while evaluating new opportunities adding low cost, onshore development assets to build production”.

@ 6min 26secs - GL: “Haven’t completed planning permission for the pipeline, we’re waiting on their [inaudible] for decision in September.”

@7min 08secs - GL: “we don’t want them to say you’ve dug it the wrong way.” I can’t believe Lucan even said this considering the incompetence surrounding Angus drilling from the wrong well at Brockham delaying the project by 2 years.

@10min 28secs - GL: “Get most of that construction work completed in Q4 and commissioning begun with First Gas sometime around New Year.” And which Government bodies work over Christmas and New Year?!?! As I said from December 2019, June 2020 for First Gas was never achievable (80 years of experience?)

@12min 37sec - GL: “If we were to sit back and do our analysis and Shell and Total and everybody else were to do their analysis on 15pence/therm, we’d all be bust.”

Shell and all the other companies having producing assets around the world, which make them multi-national companies and intern…means they have cashflow coming in and huge cash reserves. What does Angus have? Nothing…actually quite the opposite as Lidsey will make a loss in 2020, considering they only scrapped a profit in 2019 with average price of $63. A wage bill of £1 million for 2019…I hate to see what the bill will be in 2020 with all the consultants brought in…don’t forget the ex-interns as well.

https://www.youtube.com/watch?v=EjFrIeyS1OM&feature=youtu.be

So Angus have raised £5 million pounds for Holmwood and £3 million for work at Balcombe, Brockham and Lidsey.

Subtracting £300,000 for buying out Terrain Brockham share…that leaves £7.7 million unaccountable. Where has all that money gone? I don’t see it in the Annual accounts and yet you could drill 2 wells with no partners for that.

The £1 million Holmwood commitment to drill a well still stands, the 100% Balcombe EWT costs still stands, yet its been shown Angus don’t have enough to get them to First Gas.

PS - £3 million was raised under George Lucan. And for folk who say its old news…I don’t think your mortgage company would think the same way when you say I took out the mortgage years ago. A debt is a debt.

“general working capital “and “Provide further working capital for the Group.” seems the equivalent of having a black Amex card….spend spend spend.

http://www.angusenergy.co.uk/wp-content/uploads/2019/05/Angus-Energy-Proposed-Placing.pdf

"Reasons for the Placing and Open Offer Potential Acquisition

The funds raised are to be applied, after provision for general working capital, approximately equally to support ongoing works at the Company's Brockham asset, forthcoming works at the Company's Balcombe asset, a seismic overview of the Company's Lidsey asset and to fund the exploration of potential acquisition opportunities."

http://www.angusenergy.co.uk/wp-content/uploads/2017/02/RNS-Angus-Energy-Fundraising-and-Acquisition.pdf

"Use of proceeds ?Angus intends to use the proceeds of the Placing to:

Pay the costs of the Acquisition and the ongoing costs attributable to its interest in PEDL143, including drilling the Holmwood-1 exploration well, expected to be approximately £1.0 million ?
Fund the costs of the acquisition of a 10% interest in the Brockham oil field licence PL235 which it acquired from Terrain Energy Limited (“Terrain”) on 16 December 2016 (the completion of which will increase the Angus group’s interest in PL235 to 65%) (“Brockham Acquisition”). The Company estimates this will cost approximately £300,000. The Brockham Acquisition had been funded with excess working capital the Company raised at Admission; the Placing re-establishes that working capital surplus to act on future growth opportunities ?

http://www.angusenergy.co.uk/wp-content/uploads/2017/11/RNS-Angus-Energy-£3000000-Fundraising-2017-11-23.pdf

"Use of proceeds
The principle purpose of this offering is to increase capitalization and financial flexibility. Net proceeds from this Placing will: ?
pay operational and associated costs related to the delay of the drilling of Holmwood-1 exploration well;

fund capital expenditures for the distribution of excess power generated on-site at Brockham with the installation of a connection to the National Grid, as outlined in the Company RNS of 22 September 2017; ?

assist with funding business development and potential acquisition activities; and ?

Provide further working

gkb47 - Don't forget Ruperts slice of the pie either. Didn't Clanwilliam take an oil rig company private when he was Chairman?

gkb47 - what is Knowes current share %?

Rastuss - I agree it does seem very strange when you are quoting the companies accounts / RNS and adding up their liabilities and yet folk will go out of their way to say you're wrong....with no counter evidence (links, page numbers).

I do find it takes up our time and Admins time to filter the wheat from the chaff.

Rastuss - your post on Friday caught my eye.

"Where are they going to raise the cash to bring it to first gas, if the equity market won’t support another placement and Knowe Properties is close to its shareholding limit before it has to make a bid for the whole company?"

What is the limit?

Angus fail the stress test for Saltflleetby and that is even without the Holmwood £1 million commitment to pay for a well which doesn't appear in the accounts.

Just the costs of getting to First Gas, salaries places an immense strain on the companies cash reserve. The CPR doesn't look at all the outgoings that Angus has

Angus have predicted it will cost £2.79million to get to first gas, so deducting the £2.5 million leaves them £290,000 short.

Angus annual wage bill £1 million and rising.

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

As well as having to pay for all the Balcombe applications after screwing up the permit they already had in place.
Angus are also liable for all the EWT costs for Balcombe and pay for the FDP.

Being generous and saying 40pence/therm minus 2.5pence = 37.5pence.
Over 10 years that is circa £37.5 million for the entire project for both Angus and Saltfleetby Ltd
Angus share = £18.75 million over 10 years before deducting £2 million for 100% decommissioning costs.
Angus share = £16.75 million over 10 years

1 year equates to £1.675 million
Subtract £0.97million
Subtract £1million

Leaves you owing £295,000 a year.

And that doesn't even include the £1.29 million for the sidetrack or the £290,000 missing to get to first oil or the £200,000 per annum for Merger reserve.

And that is with 40 pence/therm

The cookie pot is well and truly empty.....

And thats before the missing £1 million for Holmwood.

Angus will have to start taking any profit (from whichever year that is) at the start of the project ....ring fenced for their £2 million decommissioning (just as they did at Lidsey and Brockham).

Saltfleetby - at 40pence/therm doesn't make a profit.
Expected kit arrival in Q4, but still need to hook it up, test it and commission it....Q1 of 2021 for First Gas due to no
activity over Christmas / New Year period.
Lidsey - scrapped a profit in 2019 with $63 average price, but (and Angus can't be blamed for this) due to Corona will not make a profit with 2020 oil prices.
Brockham - isn't producing and costs Angus £140,000 in just lease costs.
Balcombe - 7 day Well test finished 2nd October 2018. Time and money spent by Angus trying to get a new testing permit after they closed the previous one.

£2.79 million to get to First gas
£140,000 for Brockham lease
£40,000 for Lidsey lease
£1 million plus salary
£400,000 for rent
£200,000 merger reserve

Thats already £4.57 million

Angus raised £2million for Holmwood and £5 million for Balcombe.....and its all gone without actually doing the projects. At some point tomorrow has to come and you can't keep putting off your commitments....which means more share dilution.

Rastuss - seems I have missed some action on the Chal board? I see my comment has taken collateral damage. Was it my analogy of Mr Von Tidswell drilling from the wrong well was the equivalent of siting the London Eye on the wrong side of the Thames?

Baits - one would expect to do sone due diligence rather than buy a share purely on sentiment alone, so please feel free to post the numbers with links to Angus accounts / RNSs. I will assume its just sentiment if you can't. And yes this is a totally different Angus from 2016 / early 2017 when they had institutional investors buying into them and riding on the Gatwick Gusher.

I see Emirates laid off another 800 pilots yesterday, even Aramco are getting rid of rigs and laying off guys. Cases are rising in various places around the world. 2020 doesn't look very healthy and 2021 is now getting closer.

Perhaps you should ask why Angus Directors and Staff haven't taken a pay cut unlike the likes of Shell / BP all the way down to UKOG whose Directors have taken a 20-50% pay cut (which yo ushoudl know about having been invested in UKOG). And why Angus is not reducing its outgoings by getting rid of their £400,000 rental costs.

Baits - your comment "...you need to spend money to acquire assets they are not free,and the money they have spent so far is a lot less than the worth of these assets." raises a lot of questions (pardon the pun).

Angus have raised £25 million since IPO and for that they achieved £200,000 of oil revenue from Lidsey in 2019 before costs, trucking of water, leases so we are looking at say £50,000. Is that a good return for your buck?

Perhaps this is why Knowe properties dipped into their pockets for £1.4 millions CLN (considering they have never bought an additional share since IPO). Getting funding for AIM companies was already tight in 2019 and now it seems even harder.

https://www.valuethemarkets.com/2020/03/16/aims-existential-crisis-will-more-firms-fail-as-funding-evaporates/

“Due to Covid-19 we face an unprecedented situation which makes a variable price and freely convertible instrument exceptionally difficult for the market to price. For the moment, we are very pleased to have secured £1.4 million of new core capital for the Company at a time when few can have confidence that equity capital markets will be open for fundraising for the foreseeable future.

http://www.angusenergy.co.uk/wp-content/uploads/2020/04/Issue-of-£1.4-million-Convertible-Loan-Note.pdf

So it is safe to conclude that less some cash for office stationary, the outstanding amount of the £3 million raised on 30th April 2019 has been spent on other things.

The question then is where will the money come from to undertake the Balcolmbe application / EWT / FDP and Lidsey seismics which? It seems the money in various posters eyes is for different projects? Yet there isn't to go round if Saltfleetby costs £2.79 million, Angus Salary is £1 million plus, lease obligations £180,000 and then Balcombe / Lidsey. I am interested in how folk can add the liabilities up and still find some spare cash.

"Reasons for the Placing and Open Offer

The funds raised are to be applied, after provision for general working capital, approximately equally to support ongoing works at the Company's Brockham asset, forthcoming works at the Company's Balcombe asset, a seismic overview of the Company's Lidsey asset and to fund the exploration of potential acquisition opportunities."

http://www.angusenergy.co.uk/wp-content/uploads/2019/05/Angus-Energy-Proposed-Placing.pdf

Ocelote - I note you are unable to provide a link and are using murphys law.

£3 million raised on 30th April 2019 for what actually? Work at Brockham lasted several days before the EWT was cancelled and Balcombe / Lidsey work that hasn’t taken place. This placing took place over a year ago. So what happened to the money? "general working capital" perhaps?

"Reasons for the Placing and Open Offer

The funds raised are to be applied, after provision for general working capital, approximately equally to support ongoing works at the Company's Brockham asset, forthcoming works at the Company's Balcombe asset, a seismic overview of the Company's Lidsey asset and to fund the exploration of potential acquisition opportunities."

http://www.angusenergy.co.uk/wp-content/uploads/2019/05/Angus-Energy-Proposed-Placing.pdf

Ocelote - are yo quoting an Angus account, presentation or RNS for the Angus's book net assets were £11.116m or 2.13p* per share et al or is this just a figure plucked out of the ether? Can you please post a link.

Baits - I have no need to remove your one liners. I'm still waiting for you to justify your reasoning with facts provided by Angus i their various accounts, RNS.