Member Info for ocelot

One of the most bullish points about yesterday afternoon's RNS was its very title:

Re-evaluation of Lidsey Field (PL 241)

It means that Alba have expressed an alternative view.

If ever there is to be question of Alba disposing of their stake in HH to UKOG, then it is in Alba's interest to talk up the value of their stake and it is in UKOG's interest to talk it down.

ocelot
Why post what ALBA said when UKOG have their own views?
----------------------
Because it provides an alternative view.

A reminder from Alba's annual report for the year ended 30/11/20, Alba's stake in HH being 11.765% and UKOG's being 85.635%:

Following a review carried out by the Company in connection with the preparation of these accounts,
the Directors have determined that the fair value of the Company’s investment in HHDL should be
revised down to a figure of £4,000,000 (2019: £5,430,000). The Directors commissioned a third-party
market-based valuation of Alba’s investment. For further details see Note 10.

From the annual report for the year ended 30/11/20:

Following a review carried out by the Company in connection with the preparation of these accounts,
the Directors have determined that the fair value of the Company’s investment in HHDL should be
revised down to a figure of £4,000,000 (2019: £5,430,000). The Directors commissioned a third-party
market-based valuation of Alba’s investment. For further details see Note 10.

They dealt with this in their last set of accounts.

https://www.bloomberg.com/news/articles/2021-09-24/france-slams-eu-s-single-electricity-market-as-aberration?sref=Em01M8Hr

$78.03

The U.K. is considering fresh proposals for building a new nuclear power project at the Wylfa site in Wales a year after another plan was shelved after a lack of funding.

The government has said that nuclear is vital for its plans to reach net-zero emissions by the middle of this century, but has struggled to get large scale projects built. The latest push for atomic power comes as Britain struggles with an energy crunch, with surging natural gas and electricity prices increasing the risk of blackouts this winter... (from Bloomberg)

Bit of a shambles, isn't it?

Good for gas producers such as Angus, not so good for consumers, whether retail or industrial:

https://www.theice.com/products/910/UK-Natural-Gas-Futures/data?marketId=5253319

Look on aquis for a buy that doesn't show.

Think they are quite right to seek to make the most of their legacy assets such as Lidsey and to position themselves for future sources of energy such as geothermal.

Fully approve of their approach, they're not a one trick pony.

The preliminary work suggests that the historical mapping should be discarded and the structure mapped afresh using the new data and with further work to tie in two historical wells nearby ...

Reminder of content of page 10 of the presentation dated 18/06/21:

Further seismic lines acquired and to be reprocessed alongside original
lines
• Reinterpretation of of existing lines indicates larger reservoir area.
Consideration of further competent person update.
• Application for planning and EA permitting consent for further sidetrack
from one of two existing wells
• Potential either of farmout of some of 80% or internally generated cash to
fund shallow sidetrack
• On a modest recovery rate of 33% of an upwardly revised OOIP figure ....
• Management see embedded value of £15m (adjusted a prudential
discount of 80%)

https://www.angusenergy.co.uk/wp-content/uploads/2021/06/ANGUS-ENERGY-PROACTIVE.pdf

The Company therefore acquired a new line of seismic data to link existing seismic lines across the structure in the vicinity of the two existing wells. This work went very smoothly and was accomplished using a very simple low cost but high-quality method. When the data from the new line became available all of the existing seismic lines were reprocessed to a uniform standard.

Subject to some further work on the processing particularly processing to depth, Angus are now in a position to reinterpret the seismic, using the new data, with the aim of remapping the structure. The preliminary work suggests that the historical mapping should be discarded and the structure mapped afresh using the new data and with further work to tie in two historical wells nearby at Middleton and Pagham (outside of the Lidsey Field) to provide depth and structural control. This additional data should provide a more complete picture.

George Lucan, CEO, comments: "Whilst the Company views these oil producing fields as essentially legacy assets, and clean gas and geothermal as our primary focus, we remain committed to good husbandry of all of our sites and extracting maximum value for shareholders and expect this work to advance that goal.

Progress continues with Saltfleetby procurement with no significant deviations from timing or budget but with a significantly improved gas price environment. Additionally the Company looks forward to updating shareholders on its geothermal projects at the end of the month."

With acknowledgements to MPO818 on the Angus board:

Royal Dutch Shell Plc expects the global natural gas market to remain tight through 2025, according to a note from Jefferies, citing a sell-side event with the company.

that should be 8.160m+.

a better trade, 8,160m+ at 0.245p.

Almost at the end:

"we're looking to have multiples on that return (of £6m on Alba's investment in the Greenland projects) in the years to come".