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Angus Energy soars as CPR sees value in Saltfleetby gas field

The AIM-quoted onshore UK oiler has a 51% interest in the gas field which could be brought online in the relatively near future.

Angus Energy PLC - Angus Energy soars as CPR sees value in Saltfleetby gas field

Angus Energy PLC (LON:ANGS) shares soared in Thursday morning’s deals after a third-party assessment of the Saltfleetby gas field identified material reserves.

A competent persons report (CPR) authored by consultant Oilfield International estimated 16bn cubic feet of gas as mean sales gas reserves, which were valued at around £50mln.

Oilfield International also estimated some 10bn cubic feet of mean contingent resources.

The CPR envisages capital expenditure of £1.5mln would be needed to bring the filed online later this year, and, that a horizontal side-track well could be drilled later in the second half of 2021 to accelerate gas recovery.

READ: Thursday’s stock market movers

Further spending would be needed to monitise the estimated contingent resources.

Angus owns a 51% interest in Saltfleetby. The CPR estimates the mean value to Angus shareholders, in ‘the central case’, at around US$25mln - with a high case of £35mln to £16.7mln.

"This is clearly a gem of an asset and a just reward to loyal shareholders,” said George Lucan, Angus managing director.

“We look forward to converting these reserves into clear cash and positive cashflows whilst keeping open the possibility of further substantial upside from the contingent resources. 

“The exercise has been immensely useful for Angus management in identifying opportunities within the field as well as planning for connection and long-term operation.  We are very grateful to Oilfield International for their hard work."

In Thursday’s deals, Angus shares were up 0.30p or 35% changing hands at 1.15p.

Quick facts: Angus Energy PLC

Price: 0.465 GBX

AIM:ANGS
Market: AIM
Market Cap: £2.81 m
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