Member Info for ocelot

Ibug,

It's the answer to the 6th question down:

https://www.angusenergy.co.uk/media/investor-questions/

Bet a lot of due diligence is going on even if anyone is interested.
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"Loxley looks to be an attractive asset and we will always look at attractive assets at the right price" (George Lucan of Angus in an answer to an Investor Question on their site yesterday).

It looks, too, as if ANGS may well be on the look-out soon for projects in which to invest, given they achieved first gas at Saltfleetby on 30/08.

Think they may be seeking to create a mid-cap stock over time, so don't believe the aim is to set up ANGS for a sale.

If someone was to come along and offer a very generous figure, then, of course, they would be obliged to take a close look at the offer.

Not on their own, hence the pre-planned farm-out programme.

Rishi Sunak's Energy Profits Levy creates a pool of money looking for projects in which to invest.

UKOG is proposing Loxley as one such project.

Won't benefit UKOG if they farm it out ...
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Not sure UKOG have sufficient profits to benefit from it themselves.

But it should help them to farm Loxley out.

According to Saltfleetby's CPR, its expected lifetime is about 10-12 years (although ANGS will doubtless be looking to extend that lifetime as much as possible).

SS has written of an expected lifetime for Loxley of 20 years. It does appear to be an exciting potential prospect.

What took the most time was arranging the debt facility of £12m, more than a year (after a false start with an international bank).

Most of the infrastructure has been installed and tested during the course of this year.

Reminder:

Under Rishi Sunak's Energy Profits Levy, "For every £1 a company invests, it will get back £0.91 in tax relief".

For those companies subject to the levy, there is, therefore, a powerful financial incentive to invest. This should help UKOG as it seeks to implement its pre-planned farm-out programme.

Has emerged from all the regulatory and procedural delays.

We await news of the pre-planned farm-out programme.

Details of the hedge were published on p49 of the revised CPR of 26/10/21:
https://www.angusenergy.co.uk/wp-content/uploads/2021/10/Angus-Energy-Saltfleetby-Reserves-Valuation-Report.pdf

Since then, some of the 22 Q3 hedge has been rolled forwards into 23 Q1 (we do not know how much).

Loxley looks to be an attractive asset and we will always look at attractive assets at the right price. (from an answer to an Investor Question this morning).
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In a letter to the local MP of 10/06, UKOG wrote of "the 43-70 billion cubic feet of independently estimated recoverable gas at Loxley".

The commerciality of the field has yet to be confirmed so, in the event of success, first gas is several years away.

But it provides one indication of the kind of project in which ANGS might seek to participate once flows at Saltfleetby have been optimised and they feel comfortable with the reimbursement of their debt.

I suppose they could receive an offer that it would be difficult for them to decline.

If they were "trying to offload the 'second biggest onshore gas field" and succeeded, it might provide a useful boost to their cash resources.

There are posters who think Igas may be a potential farminee for Loxley.

Now we have Angus saying that Loxley "looks to be an attractive asset and ... will always look at attractive assets at the right price".

Any more for any more?

So what, Ibug?

ocelot
I've met loads of "attractive" women in my time but I wouldn't marry them ...
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George Lucan is the CEO of an AIM-listed oil and gas E&P company, you are not, Ibug.

Ibug,

Of course Loxley has potential - "it looks to be an attractive asset", in George Lucan of Angus's words -and of course the share price should be far higher.

And:

Give the lessons learned and valuable experience gained from SFB, would the Board consider farming into or acquiring UKOGs Loxley gas asset? Given SFB cash flows and experience Angus would have to be viewed as very attractive partner for UKOG which could to be reflected in favourable T&Cs of any deal. Asked on 1 September 2022

Loxley looks to be an attractive asset and we will always look at attractive assets at the right price.

And:

Give the lessons learned and valuable experience gained from SFB, would the Board consider farming into or acquiring UKOGs Loxley gas asset? Given SFB cash flows and experience Angus would have to be viewed as very attractive partner for UKOG which could to be reflected in favourable T&Cs of any deal. Asked on 1 September 2022

Loxley looks to be an attractive asset and we will always look at attractive assets at the right price.