Member Info for B2HS2L

Happy Easter Mirasol, and thanks for the brief trip into Totalboloxland.

RNS 03.07.2018
Angus Energy Plc
("Angus Energy", the "Group" or the "Company")
Kimmeridge Assesment Indicates High Quality Crude at Lidsey
New Measurements Show Kimmeridge Producing 38 - 40 API, Light Crude

Angus Energy Plc (LSE:ANGS), a leading UK on-shore, conventional oil and gas production and
development company, is pleased to provide results from its supplementary assessment programme at the
Lidsey Oil Field. Having consent from all its regulators, the Company performed a Geochemical Analysis
of oil produced from the Kimmeridge (Clay) Layers in the Lidsey-X1 Well.
In order to conduct the assessment, production from the Great Oolite formation was temporarily isolated
and the Kimmeridge exposed to allow fluid samples to be collected. The Kimmeridge formation
immediately produced light oil, samples which were sent for third-party analysis. The Geochemical Analysis
was performed by the same organization that previously provided third-party geological evaluations of
Horse Hill and Brockham.
The multiple samples tested demonstrated a composite of oil from the Oxfordian and Kimmeridge layers
exhibiting a mixed range of source maturities. The lowest quality crude in the range possessed light, 38.5 -
degree API oil in the natural fracture system.
Angus Energy’s Chief Geologist, Andrew Hollis said “The significance of this assessment is that we now
have demonstrable evidence of oil generation of good quality on the outer perimeter of the basin. This
supports our conclusion that the Weald Basin Kimmeridge play is robust and the highest maturity will be
found in the centre of the Weald at Brockham, Balcombe, Holmwood and Horse Hill.
“Based on the data, it is possible that fields centred in the Weald could produce even lighter, sweeter crude
at 40 API. Comparatively, Brent Oil is 36 API,” he said.
Angus Energy own a 60% direct interest in the Lidsey Oil Field and a 50% economic interest in the LidseyX2 well which is held under UK Production Licence PL 241. In March 2018 the West Sussex County
Council (“WSCC”) extended planning permission for the Lidsey Oil Field for the next decade.
Paul Vonk, Angus Energy’s Managing Director, said “We will continue to gather more data as we assess
the commercial viability of the Kimmeridge across the Weald basin. This includes the highly anticipated
basin wide study due in the next month. Demonstrating we have movable oil in the Kimmeridge at Lidsey
is an important metric and, we believe, further de-risks our assets at Brockham, Balcombe and Holmwood.”
END

Three days later JT-P quits as head of Angus, and other matters take priority.

Lots of discussion concerning Lidsey and why the board are interested in developing the well(s).
The LSE Angus RNS index does not list an RNS for 03.07.2018,
but from http://www.angusenergy.co.uk/media/news/ it appears in the next post.
Toward the end Paul Vonk is quoted as saying:

"This includes the highly anticipated basin wide study due in the next month."

What does this refer to please, as this study might be the reason the board are so interested in Lidsey?

Alan seems to think we are performing serial perforation operations, so I assume the water issue is fixed.
It could even be that we are performing several small scale perforations instead of one large one, so that we do not interfere with the good work performed on the bridging piece.
As I see it, we would have an RNS about fixing water ingress by now if they intended to issue one on this subject alone.

IMO we are in danger of assuming that David Lenigas wants to swap an interest in the Lidsey license for 8,324,024 ANGS shares, because he wants to sell them to fund Australian projects.
If DL likes what he is hearing (about Balcombe and Brockham) after the 6th March Annual Financial Report ie:

"Outlook

The Company will continue to work towards commercial production from the Weald Basin by water identification and isolation followed by production testing at Brockham and preparing Balcombe for production by applying for the extending well test The company will also continue to explore options to increase production at Lidsey and reduce water disposal costs. Additionally the Company is beginning a detailed study into the potential exploration lead to the west of existing Lidsey producing structure."

DL might be able to find funds from elsewhere for Oz, and keep the 8,324,024 shares as the basis of a future larger ANGS holding.
(DL will own 1.78% of ANGS after 24th April if he sells no shares).
Perhaps we shouldn't be surprised if come 24th April a Holding(s) in Company RNS reveals Lenigas has > 3% of ANGS, and begins stake building.

I guess it all depends on whether the team bring oil to the surface at Brockham soon, or ANGS run out of funds attempting to do so.
Should the board find funds for appraisal work at Lidsey, and not put 100% technical and financial effort into Balcombe, then that might go against Lenigas' interests.

Could this situation have occurred because Lucan has timed the issue of 8 Mil shares to Doriemus only when the VWAP share price had been reached?
Issued any earlier, and Doriemus would have received a premium on the share price.
Any later and Doriemus would have been concerned that they did not have the shares they wanted ready to sell into an sp rise on expected good news.
(Who would have been better placed to KNOW whether good news was imminent?)

Masterbaker:
I believe the following is also relevant:

RNS 26.02.2019 extracts:

Lidsey: The Company continues to produce crude oil at a variable self-restricted flowrate due to produced water disposal limitations. Whilst the well remains commercially profitable in spite of these limitations, the Company also continues to explore all water disposal solutions including water injection to aid production.

Additionally the Company is beginning a detailed study into the potential exploration lead to the west of existing Lidsey producing structure. Further work is required to work up the target and determine risk and viability however indications are it could be drilled from the existing pad and potentially a side track of one of the existing wells greatly reducing costs as well as any environmental impact.

Qualified Person's Statement:

Chris de Goey, a Non-Executive Director of the Company, who has over 20 years of relevant experience in the oil and gas industry, has approved the information contained in this announcement. Mr de Goey is a member of the Petroleum Exploration Society of Great Britain and the Society of Petroleum Engineers.

Ref "about to flow big numbers form the Kim".

What are you guys expecting?

I'll kick off with 750 bopd conservative estimate.

RRR, - My thoughts are that if Tidswell is tweeting photo's, it is generally a good sign, - ie he is not pre-occupied with problem solving. Tidswell is more likely pleased to be ahead of the stated schedule.

Extracts from 06.03.2019 RNS:
Board Changes

Angus Energy plc (AIM: ANGS), a leading UK conventional oil and gas production and development company (the "Company") is pleased to announce the following appointments effective immediately:

Non-executive Chairman - Patrick ("Paddy") Clanwilliam

Paddy's previous responsibilities include the Chair of Eurasia Drilling Company Limited (EDCL.LI) the largest drilling and work-over company in Eurasia. He is also a former non-executive director of SOMA Oil & Gas, a private exploration play in deepwater offshore Somalia and OJSC Polyus Gold (OPYGY) the largest Russian gold mining company by market share. Paddy has over thirty years of experience in corporate communications and resource extraction in the MENA and FSU regions. He is presently non-executive director of FTSE100 listed NMC Healthcare PLC (NMC.L).

Cameron Buchanan, outgoing acting non-executive Chairman, writes: "Having taken over the Chairmanship at short notice, I am very pleased and delighted that I am handing over the role to Paddy Clanwilliam who has had a wealth of experience over many years in the oil & gas drilling and production fields.

Patrick Clanwilliam the Company's new non-executive Chairman writes: "I am delighted to join the Board of Angus Energy as non-executive Chairman. I was especially attracted to Angus by the quality of its technical and operational team and in particular its vision for the future. I hope to use my Oil and Gas experience to add value to this vision which, I fully expect, will one day reach beyond its excellent foundations in the Weald Basin ."

So I fully expect Paddy to be cognisant of - and actively involved in - minimising risk of whatever nature during this workover.
I hope Paddy has recourse to a number of suitably qualified contacts to provide telephone backup should problems arise.

I would expect nothing less from a man in his position.

I'm waiting the next RNS with confidence.

Alan is of the opinion that we would be very unlucky to have encountered >1 water source.
That's one of the reasons I'm still in.

The fear I have includes the outside possibility that there is > 1 water ingress, and only one bridgeing plug.
Presumably that is why they have scheduled to perform water logging (as opposed to being satisfied with previous logging attempts).
Here's hoping they are certain there is only one water source.

Thanks Alan for your detailed account of what should be going on at Brockham post water logging.
I hope the announcement of such lenient timescales takes the pressure off the installation team, - allowing efforts to 'get it right first time' to succeed.

I'd be happier if I knew who was setting the bridge plug Alan.

(There is some more logging to do before they decide where to place the plug).

I assume the manufacturers have at least supplied the setting instructions, if the manufacturers specialist will not be present.

rxdav,
I have passed a large image of Tidswells' mug shot to 2 Para to replace their Jeremy Corbin target.
They are reluctant to do this, but its all in a good cause.
They're happy to assist if water ingress persists, finances are spent, and JT-P leaves the country.

Alan, - If the Bridging / Packing equipment sourced from USA turns out to be supplied by a company who no longer intends to use it, and not from the manufacturer, do you expect it will be installed by the manufacturers specialist please?
I know I've asked before but this is bugging me because with Tidswell in charge, I want to to know whether to increase or decrease the risk of not fixing the water ingress issue first time. Thanks.

gkb47,
Could this be an attempt to stop a re-occurence of the problems experienced by UKOG at Broadford Bridge?
Ref:

http://www.ukogplc.com/page.php?pID=115

Just my 2 cents.
I know nothing about UKOG problems other than what is stated in this reference.

JT-P tweet 4th Feb.
"Although the oil reservoir pressure is very good the water zone which may be as little as a few meters is 200 psi higher!"

This is the only statement that gives any clue to what they have found so far.

They presumably purchased the plug before they have identified the size and nature of the water ingress.
Alan has stated that it would be very unlucky to have >1 ingress.

Lets hope the plug they have stops the water, they must be reasonably confident.

ANGS are not messing around at Brockham in the expectation of finding oil.
Oil is there and waiting to be extracted in large quantities is a fact.

We are very pleased with the new broom sweeping old investor communication strategies away, but we should temper our expectations of the timelines within today's RNS.

Operationally it can be very challenging to get close to the stated schedule, but I assume there is a certain amount of leeway locked in, and we have not been given a 'best case'.

We hope we are going to get a specialist to install the Bridging plug, but if not we are left with Tidswells attempts.
Lets hope advise and possible exterior assistance is available from Patrick Clanwilliam.

The prospect is transformational for ANGS, acquiring a decent income at last, but we must not lose sight of the threats to our investment that:

a We have no spare equipment (requesting Angus for an update has drawn a blank).
b We might need to rely on Tidswells expertise.

Great to see a plan. A quality (fixed first time) execution of that plan, on time and budget is a different matter.

I have just read the work programme on the website.

Page 8: Isolation of Water:
Full logging program over perforated section to identify water zone.
The isolation of the water zone using hydraulically set plug.

Page 11:

A detailed logging program will be carried out to identify water
zone in a cost and time effective manner

I'm still unsure whether they know if they have >1 water ingress point, or where it (they) are.

I see this as a risk to the published timescales, but I assume they have purchased a long bridging plug:

a because the well's perforated length is so long, they can afford a long bridge.
b because it is still unclear what length of perforation has to be bridged.

I stated yesterday I was unhappy with logging attempts so far.

Good luck all LTH.

Alan's post of 14th Feb is relevant, (reproduced below), I hope he doesn't mind.

I seek to establish whether a specialist is likely to be available to install the bridge if the bridge was not purchased from a manufacturer.
++++

B2HS2L - the actual running, setting and testing of the bridge plug or packers is carried out by a specialist Engineer who comes as part of the package. They know their equipment inside and out and have multiple wells experience of setting these in different well profiles / conditions.

I posted this link before, but this is how you would isolate the water zone at the bottom of the well.

https://www.youtube.com/watch?v=_yklTlzh7FU

I believe Doriemus were being cautious as it differs from Angus and Alba. Its most uncommon to find multiple zones, so I would still say its at the bottom of the well.

Regarding Tidswell, all he has to do is order the equipment and then work out a plan from the slickline logs which would pinpoint the water zone(s). But yes you still need to be efficient and know what you're doing. I would rather have a seasoned professional steering us forward. Tidswell has gained enough free shares in Angus over 2 1/2 years to be content.

This is from an old post regarding logging the water zone.

Carrying out slickline runs(s) will pinpoint the zone that requires to be sealed off using packers. Resistivity tool can determine whether its oil, water or gas. These measured depths from surface are required so the packers are positioned and set at the correct depths.

In the following link, scroll down to the very last chart and you will see the middle column in the header saying Resistivity. You can see how as you move deeper in the well how the resistivity curve changes when it encounters oil, water or gas. This is how Angus will pinpoint the water zone (if they haven't done already).

https://www.spec2000.net/14-contacts.htm