£2.5m ring fenced is standard practice, though earning some nice interest (though GL reckons they can decommission cheaper).
Angus is in fortunate position of raised £3.1m at 4.25p and while it's terrible for prior shareholders it presents quite an opportunity for entry at this level with no placing needed. Also, given most of our MCap is cash in hand and Saltfleetby is a de-risked asset worth >4p by itself (though I understand folks will only believe it when they see it).
I'll happily take some more from impatient sellers - best time to invest.
In fairness sceptics will say the same was said of Brockham 'sweet spot' etc., but difference is we know Balcombe flowed very well and plenty enough to dwarf the current MCap, not even considering other assets.
I don't short, but what an easy one to ride down with UKOG.
Yes, fantastic potential with the higher throughput and despite the downturn in the macro diamond sector relatively stable for the higher quality gems. graham-wales, I'll wager your doomsday scenario of Bluerock never being profitable will be proved wrong within a month.
I would prefer Angus to hold onto Brockham, unless they can release some funds to redirect to a higher Balcombe stake. Would be nice to see even a small amount of commercial production through the Portland and who knows, as more knowledge is gained from the Kimmeridge from the Weald players maybe can revisit this in the future.
Happy to keep topping up here in the meantime. Won't take much to lift this above 2p and I suspect will be closer to 4p when Balcombe is ready to go. Seriously, all things considered we are well funded till next year with two de-risked assets, either of which would be transformational. Even if Balcombe gives a (conservative) few hundred bopd Angus has plenty of tax-free cash flow before the gas asset is switched on. Fast-forward to summer 2020 with commercial production from Balcombe and Saltfleetby coming online and 4p will look cheap.
RA, you are blind to see any potential upside from the current levels because you are clearly (and understandably) bitter because of Brockham and countless other things. Objectively the assets are worth 2.5p at current state of play. The hefty discount represents the lack of trust the market has in Angus to deliver on their promises. That may be little comfort to you but it doesn't negate the fact that there are two potentially transformational revenue streams and both significantly derisked and both fully funded with money left over to tackle Lidsey seismic too. (Your talk of a half-dozen placings is wildly pessimistic).
First revenue expected tail end of this year from Balcombe. Second revenue expected mid 2020 with Saltfleetby. I personally believe success in either one will see return to 4-5p. Success in both and double figures are within reach, which is why I'm happy to average down.
I wish you luck with your legal case but please don't twist the facts.
Agree - Saltfleetby is as derisked as can be especially with Mike Wells at the helm. That should restore confidence and we are promised a 'flurry of news' in relation to this, so won't have to wait a year to begin to reflect upside here.
Lidsey still appears to be of interest and we're awaiting the news on the seismic. Potential of producing at virgin pressure if I remember rightly from the CC, though not sure what flow rates that yielded historically. Could be interesting.
Balcombe already derisked as you state, with encouraging choked back rates.
Brockham still has the portland potential and clearly it's of interest to some given the ongoing discussions. I personally feel they will sell out and put the money to better use e.g. up stake in Balcombe.
Worth remembering also that the £2.5m sitting in the bank is also earning interest ;) Probably be more like £3.5m by the time it's needed to decomission (though I'm not sure whether Angus can use these funds or if we are obliged to hold it ringfenced...)
(Courtesy of CharlieLondon previous post)
The market cap at the moment is around £7.5 million.
We know ANGS have about £2m from the recent placing plus the £2.5m impairment charge.
They paid £4million for 25% of Balcombe, which arguably should be worth more given the initial flow test results, let’s say £6m
GL has suggested Saltfleetby is worth £20m on completion (he put a figure of 4p per share on it). Let’s be very conservative and call it £5m a present given the contingencies but reflecting the £2.5m impairment charge.
Adding £2m cash in bank, £6m for Balcombe and £5m for Saltfleetby gives £13m, which is 2.5 p alone. And that’s fairly conservative and doesn’t reflect much future upside. So people talking this going lower are playing to sentiment rather than actual facts.
People forget Angus is a new company now with the ex-BP man in charge of Saltfleetby. You couldn't hope for a better addition to the team - also involved in the original successful exploration Portland wells at Brockham and extensive experience in onshore regulations.
Angus still expecting to get cash flow this year from Balcombe 'at the tail end of the year' so a few months is not long to wait and SP will rise in anticipation for those who are patient enough.
I'm still holding fair chunk of AAOG but will swing some more into here if it dips. Incidentally, there were plenty of trolls on the AAOG BB talking it down at 4.2p (now ca. 5p), including Oilman Jim on twitter ripping it apart before miraculously turning bullish overnight. Was a pleasure to see the shorts burn over there, and looking forward to the same happening here!
Ps. CharlieLondon - appreciate your posts. What email are you using for GL? Tried a few variations with the @angusenergy.co.uk but not luck!
Yes. Wouldn’t be surprised to see UKOG pick it up for the Portland alone, and perhaps they may retackle the Kimmeridge in the future based on their acquired experience. That’s likely to push SP into the 2s if we get a bit of cash. Be great to have share buy back or acquire more Balcombe stake...?
Well, it's a paper loss if you don't sell out. It's AIM so high-risk high reward. 50-100% swings either way and despite conspiracy theories and some galactically stupid mistakes from Vonk and Tids, the conference call sounded genuine to me and I have confidence in GL going forward. It's oversold at the moment, the directors are buying in higher and the current cash/assets greatly exceed the current SP. I'm just thankful they got the placing away and diversified the risk at 4.25p else we really would be in trouble. Gas asset is much lower risk and relatively near-term cash flow.
RA - don't take it the wrong way, respect your decision and frustration but if it becomes a personal campaign that takes over your life you will get more stressed and worked up if it comes to nothing. I personally don't think it's worth the stress and in all likelihood the SP will return multiples and all will be forgiven. It's not a one-trick pony.
RA I feel your pain, but seriously take the hit and move on. Objectively there's nothing the board can be held liable for and you'll just work yourself up over it. Average down and move on - that's just my way of dealing with it.