Angus Energy to drill new Saltfleetby side-track before First Gas to avoid safety complications

George Angus, MD at Angus Energy, talked to London South East about his ambition to build an AIM-listed energy transition company.

#ANGS currently have a 51% interest in what was Britain’s largest onshore gas field at Saltfleetby in Lincolnshire, the jewel in the crown, with £12M of debt financing for the gas project recently agreed, and first gas expected by Q4 2021.

“When we first spoke to our lenders [Aleph and Mercuria] about financing another well they were a little bit hesitant. Now we have just signed a debt facility with them which will cover all the process kit and a new side-track well. That being the case it is safer to drill the side-track without the obvious safety complications of working alongside two flowing gas wells. Better to get the drilling done before gas starts flowing” explained Angus Energy MD George Lucan.

“The lenders in any Senior debt facility want a degree of your revenues to be hedged so that you as the operator don’t have to worry about price fluctations. In this instance about 70% of our revenues will be fixed,” said George.

Angus have legacy onshore interests in non-fracked oil discoveries in the Weald, at Lidsey, Brockham and Balcombe and George Lucan believes “there’s still value there”. Of those Lidsey seems the most likely project to deliver revenues. “It’s a very strong runner, and one of the lowest impact sites in the South of England. There’s 9 million barrels there, it’s near a trunk road, down the road from a refinery, close to a sewerage works – its a very low carbon footprint operation”.

And future geothermal projects are under discussion with MOU’s signed, funding being progressed but no binding agreements as yet. Angus say their focus is different from some others, and they are interested in so-called ‘flash generation’ going for the hottest possible rocks in the UK . “We think the economics are fantastic if you can get the risk profile around the drilling right.” said George.

#ANGS #GAS #Saltfleetby #AngusEnergy #Lidsey #Saltfleetby #AIM
#O&G #GeorgeLucan #LordLucan #DebtFacility

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