- Updated CPR commissioned at the Company's wholly-owned Saltfleetby Gas Field ('SGF') on the basis of Angus' decision to drill two new wells in 2025-2026, for a total of five wells producing from the Westphalian Main Reservoir along with potential for conversion for gas storage or CO2 injection in the future
- P90 NPV10 valuation of £57.1 million and P50 NPV10 valuation of £64.5 million post tax, (including the full impact of the Energy Profits Levy)
- Over 2 BCF of Sales Gas produced and exported since August 2022
- Reserves uncertainty reduced from 2021 CPR with P90 Gross Sales Gas Reserves up by 8 BCF to 24.2 BCF and P50 Reserves decreased by 2.6 BCF to 27.2 BCF net of historic production
Revised Saltfleetby Competent Persons Report
AIM-listed Angus Energy has announced an updated Competent Persons Report ('CPR') for its Saltfleetby Gas Field ('SGF'). The full CPR is available for download in the 'Presentations' section of the Company's website (www.angusenergy.co.uk/media/presentations).
The CPR, performed by Oilfield International Limited, gives the net present value of the cash flows from SGF, including the impact from the revised capex, the senior loan facility debt service costs, the associated royalties and the mandatory hedging. Oilfield International Limited has used a discount rate of 10%. The CPR is updated from the previous CPR commissioned by Angus in October 2021 ('2021 CPR').
The new CPR has taken account of production performance from the 3 wells in the SGF in the period from August 2022, when it was brought on line, to the end of July 2023. During this time, 2 BCF of sales gas has been processed and exported. The CPR includes an allowance for plant availability of 92.3% and an estimate of gas consumed in operations of 10% (P50) to 15% (P90), compared to 2.75% in the 2021 CPR, one of the reasons for the decrease in P50 Reserves as noted above. The Company is confident that gas usage will prove to be lower than this estimate once the plant has fully stabilised with the new flowline in operation.
Two further wells on the Main Westphalian reservoir, SF9 and SF10, are scheduled to enter production in January 2025 and January 2026 respectively, to extend plateau production and accelerate the extraction of gas. The cost of these additional wells, expected to be funded out of field cashflows, has been included in the NPV10 valuations outlined above.
For CPR details, see link to this announcement or download the CPR in the 'Presentations' section of the Company's website.
Richard Herbert, CEO of the Company, commented: 'Following the redevelopment of the Saltfleeby Field and a first year of successful production, it is very reassuring to confirm from the production of the 3 wells in the field that the reservoir is performing according to our expectations. We have been able to narrow the range of uncertainty on the Reserves, with a significant increase in the P90 high-confidence estimate. Despite using a more conservative shrinkage factor for gas consumed in operations and the significant impact of the Energy Profits Levy, net cash flow, discounted and undiscounted, remains strong. This evaluation allows us to plan the next phase of development of the Saltfleetby reservoir with confidence.'
Source: Angus Energy
