Analyst Comment3 Oct 2023 10:53
Angus Energy (ANGS LN) 0.67p, Market Cap £29m: Production update
• Angus announced average 3Q23 volumes up 16% q/q to ~8.3mmcf/d and condensate production averaging 160b/d, with 90% operational efficiency from the Saltfleetby gas field (100% WI), generating $6.3m revenues.
• The B07T production well has continued to clean up, now returning only minor quantities of drilling fluid solids, and construction and commissioning of a permanent flowline planned this month.
• Angus commented that work on the previously announced global refinance of the Company's debt is well advanced, with a new reservoir model and production forecasts in the process of being finalized for lenders.
A positive update that is broadly in line with the CPR forecasts, which had estimated a P90 target of ~10mmcf/d for the plateau rate of flow from all three wells on the Saltfleetby field after clean-up. Following a transformational 2022 for Angus and the delivery of sales gas volume growth in 2023, management is now focused on refinancing the Company’s existing debt in order to pursue expansions at Saltfleetby in production and storage.