Member Info for ocelot

1st well and seismic capped at $5m, so about £3.6m.

Last November's placing raised £2.2m.

We don't know if the costs of the 1st well and seismic will run up against the cap or not.

They have 6 months to publish their results to 30/11/20, longer in present circumstances if need be.

In the past, they've published them in about 4 months.

Following the long Easter weekend, UKOG more than trebled, at its peak, during the next 4 days.

As a long-term investor, one can only hope for a repeat performance this time!

Maybe an update about this Summer's planned work in Greenland.

At some stage, and it must be getting closer, permission to dewater Llechfraith.

My overall reading of the answers is as follows:

re Saltfleetby:

all participants are committed to getting the debt facility done and the conclusion may not be far away;

re Lidsey:

Angus are pretty confident in its prospects, GL says "we expect" and not "we hope".

re Lidsey:

... we expect that the revised seismic will confirm the high water cut and low oil flow rates were both the result of the drilled section addressing the flank of the reservoir. We expect much better rates and lower water cut in the main structure...

From a monthly average of $32.01 in March 2020 to a monthly average of $65.41 in March 2021, ie it has doubled.

... there have not yet been any major roadblocks, but a few potholes as might be expected in a secured facility with many interlocking agreements: the process of senior secured lending has actually grown more complicated over the last two decades just as has property and insolvency law whilst regulation generally has ballooned in every facet of modern life...

The £12 million finance facility seems to be taking a lot longer than usual. You had seemed confident of closure in a recent RNS. Can you explain the delay? Asked on 30 April 2021

A number of reasons. There isn’t anything particularly “usual” about senior secured lending in the UK’s onshore oil industry. The bulk of operators and licensees fund out of equity. We have a multitude of counterparties here: three borrowers inside the Angus group, a limited recourse guarantor in the shape of our Licence partner, a security agent, and a collection of private lenders, large and small as announced. Certain parties have very unique documentation needs or wants and a single draft can take some time to circulate around the various parties’ counsel.

Then, as a secured loan into a heavily regulated industry, there are a large number of reports to be collated, assets to be identified for charging, specialist bank accounts to set up, technical support, regulatory enquiries. The trust deeds for the Licence alone stretch to well over 100 pages. We have been frugal on our own legal costs, and restrained on the use of counsel, and we are not paying for any other party’s costs (excepting limited reports on property title) other than the commitment announced in November to Aleph as arranger. Nonetheless the delay has been very frustrating for us and all our shareholders but we hope that we have made good use of the time we have without the full funding in hand.

To provide some comfort as to progress being made, please can Angus broadly summarise progress made on the refinancing since the 29 March RNS and the legal costs associated with the refinancing.

Asked on 20 April 2021

As answered to another query this month: We have been frugal on our own legal costs, and restrained on the use of counsel, and we are not paying for any other party’s costs (excepting limited reports on property title) other than the commitment announced in November to Aleph as arranger.

Progress has been steady but frustratingly slow. Further detail would demand an RNS but we do hope that the next RNS will be the happy announcement we have all been waiting for.

What are Angus’ views on the new Geothermal Energy Advancement Association? Asked on 30 April 2021

Angus welcomes any industry body, particularly with supportive links with academia, which will draw attention to the benefits of geothermal energy – most particularly the baseload advantages of geothermal over wind and solar. As we noted in a recent conference call, the price we, as UK citizens, are paying for our electricity has risen considerably over the last 15 years to accomodate the cost of idling gas fired power stations, manned 24/7 and on standby to make up the load when solar and wind power periodically fail. We strongly believe that baseload or continuous generation, which does not require several pence/kwhr of that standby support, should be rewarded with improved long-term tariff rates to encourage us and other operators to invest further in this industry.

Angus sees a very profitable future for shareholders in geothermal with wide public support. Our recently announced target of 50 MW capacity within 7 years may soon be updated and we have made real progress on reducing the risks and costs associated with the subsurface and drilling work, as well as site identification and acquisition and innovation in the application of traditional surface equipment for harnessing the heat energy. We speak to many of our peers in the industry, all of whom recognise the considerable skills and century long experience which hydrocarbon drillers have to bring to this sector.

Our, and our peer group’s, well resourced effort to make Transition work has to be communicated better to the public at large and we welcome these associations. Equally the fact that Transition is not an overnight shift needs to be better understood by local planning authorities as they mull our legacy hydrocarbon assets as it is these which will provide some of the cashflow needed to speed that Transition along by funding these long-lasting projects.

Answered:

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

GL has spoken of the unreliability of wind and solar power and has stated that ANGS's focus is on reliable sources of power.

The Times comments on Orsted, "one of the big operators in the North Sea, (which) is having to spend up to £350m mending cables at up to 10 wind farms only 3 years after they started operating.
This is a young industry still throwing up surprises. No one understood the 'wake effect', which turns out to reduce efficiency of one turbine sited close to another. No one knew how turbine blades could wear out so quickly and have to be repaired ...".

It more than trebled from 0.15p just after Easter.

Could we see a similar movement this time, taking us up to about 0.65p?

FOMO - when UKOG moves upwards, it can leap in spectacular fashion.

200m traded - that 2nd 100m has taken 25 minutes.

Volume has really picked up: it was at 12:58 we arrived at 100m, 176.8m now.

Seems to be gathering some momentum.

Good weather - not much cover for the grouse :-)