Saltfleetby Flow Rates and Operations Update

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) 6/2014 AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR"), AND IS DISCLOSED IN ACCORDANCE WITH THE COMPANY'S OBLIGATIONS UNDER ARTICLE 17 OF MAR.

30 September 2022

Angus Energy Plc 

("Angus Energy", "Angus" or the "Company")

Saltfleetby Flow Rates, Second Compressor and Side-Track Update

·    Total sales of 1.2 million Therms achieved during September up to the end of the gas day of 29^th exceeding obligations under the hedge for that month.

·    Flow rate to be ramped up to 6mmscfd (million standard cubic feet per day) in October.

·    2^nd compressor to be delivered in December, allowing an increase up to 12mmscfd by January 2023.

·    Side Track spudding in October.

Flow Rates

Angus Energy (AIM: ANGS) is pleased to announce that gas volumes produced and sold equalled 1.2 million Therms comfortably covering any deliverables under the Company's hedging programme at the end of September. 

From the 17^th September onward, the Company achieved an average daily flow rate of 5.2 mmscfd and a peak flow rate of 5.7 mmscfd.  These results compare favourably to an expected combined daily flow rate of gas sales from the existing wells of 5.0 mmscfd in our Competent Persons Reports of March 2020 and October 2021. Pressure on the existing two wells A4 and B2 remains high at about 54 bars.

Second Compressor, Side Track and Booster Compressor

The second compressor has already been black-built and is presently undergoing hydrotesting.  Following mechanical completion, electrical and instrumentation work will conclude during November and we expect delivery to site in early December.  This second compressor is largely identical to the first and is expected to double the capacity of the plant.

The side track is expected to be spudded around 20^th October with drilling operations expected to have a duration of no more than 35 days excluding well clean up and completion work. Simultaneous operations are permitted but we have allowed for two twelve-hour shut-in periods during this period to undertake critical works and enable certain equipment to be moved on site.   

George Lucan, CEO, comments: "Congratulations to our commissioning and operating team at Saltfleetby for a safe and successful commissioning period.  We now have built the foundation on which to expand our horizons in the energy space."

END.

Enquiries:

Notes

About Angus Energy plc

Angus Energy plc is a UK AIM quoted independent onshore Energy Transition company with a complementary portfolio of clean gas development assets, onshore geothermal projects, and legacy oil producing fields. Angus is focused on becoming a leading onshore UK diversified clean energy and energy infrastructure company.  Angus Energy has a 100% interest in the Saltfleetby Gas Field (PEDL005), majority owns and operates conventional oil production fields at Brockham (PL 235) and Lidsey (PL 241) and has a 25% interest in the Balcombe Licence (PEDL244). Angus Energy operates all fields in which it has an interest.

Important Notices

This announcement contains 'forward-looking statements' concerning the Company that are subject to risks and uncertainties. Generally, the words 'will', 'may', 'should', 'continue', 'believes', 'targets', 'plans', 'expects', 'aims', 'intends', 'anticipates' or similar expressions or negatives thereof identify forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Many of these risks and uncertainties relate to factors that are beyond the Company's ability to control or estimate precisely. The Company cannot give any assurance that such forward-looking statements will prove to have been correct. The reader is cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this announcement. The Company does not undertake any obligation to update or revise publicly any of the forward-looking statements set out herein, whether as a result of new information, future events or otherwise, except to the extent legally required.

Nothing contained herein shall be deemed to be a forecast, projection or estimate of the future financial performance of the Company.

Explanation of Terminology:

Kwhr, Therms, megajoules (MJ) are all measures of the energy content of a quantity of gas and have a fixed and unvarying relationship with one another.

scm (standard cubic metre) mscm (thousand standard cubic metre) and mmscf (million standard cubic feet) are traditional measures of volumes of gas.  As producers we tend to observe volume flow from wells and through process plant but we are paid on the energy content which is metered and analysed at point of sale.

These two types of measurement, energy and volume, are related by the calorific or higher heating value which is the number of MJ per standard cubic metre.  Very intense processing, i.e. lower temperatures, will tend to remove more higher hydrocarbon fractions such as propane, butane and pentane, which will lower the calorific value but improve the margin of safety in terms of meeting transmission grid specification.

55,000 Therms, given a calorific value of about 41MJ per standard cubic metres is approximately equal to 5mmscf or 141,584 scm, 1,612,486 kwhrs, 5,804,948 MJ.