Angus Energy LON:ANGS Weald Basin re-visited

 

Share Talk has covered Angus Energy on a couple of occasions over the past month’s and the SP has risen 100% plus since the IPO in November 2016. We have received a few emails and have decided to re-visited the companies working in the Weald Basin and answer a few questions raised.

Angus Energy plc  LON:ANGS raise cash to expand existing wells at both Brockham and Lindsey oil field. Angus Energy made its AIM debut having raised £3.5 million – It arrived on the junior market with a bright future and proven production figures to match.

IPO Document 

Admission and First Day of Dealings 

 

Here is a small over view of the company before we address the questions people have been asking.

The Angus Energy LON:ANGS

2009 the company was founded, the following year they qualifies as a UK O&G Operator. Jump forward to 2014 and the group acquired Brockham and Lidsey Oil Field Acquisition.

In 2015 Horse Hill Development Ltd. (HHDL) was founded by Angus Energy with Partners brought in to fund drilling of Horse Hill – 1 exploration well.

The Horse Hill-1 exploration well (less than five miles to the southeast of Brockham) was drilled and delivered on-time and on-budget by Angus Energy as the operator, partners. The group (Horse Hill sisters), which was behind the exploration at Horse Hill generated dramatic headlines in April 2105, with claims of a huge oil find near Gatwick airport

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Source:Reuters  

UK Oil & Gas, the largest investor in the site, said up to 100 billion barrels could lie under the area. However, the amount that could be extracted is yet to be proven with further drilling planned in 2107.

Angus Energy, one of the companies exploring for oil in the Home Counties, had its own plans and was planning to join the junior AIM market back in late 2015, hoping to raise millions of pounds to expand its drilling operations in Surrey and Sussex.

This is a onshore, UK-based oil and gas company that is focused on production and development. Angus Energy holds a 50% interest in the Lidsey licence PL 241 and a 40% working interest in the Lidsey-2 well.

Angus Energy a small company with a bright future

Share Talk: 27th November 2016

 

Current equity partners in licence PL 235

Company Interest
Angus Energy (operator) 55%
Terrain Energy 20%
Doriemus 10%
Brockham Capital Ltd (BCL) 10%
Alba Minerals 5%

Brockham well commences- RIG working on the BR-X4Z well 

Share Talk: 19th December 2016
Surrey oil site get’s final approvals & drilling has commenced
Angus Energy(LON:ANGS) operator commence work on the BR-X4Z well on UK onshore Production Licence PL 235. The rig is now on site and has started work on the approved program. The company said in a statement it had received approvals from the Oil and Gas Authority and the Health and Safety Executive to start operations on the well, to be called BR-X4Z.

Questioned Answered 

Share Talk has been asked why we published a blog covering possible drill time, operational updates and information about work over rig on site. We are happy with the update we published but we will go in to a little more detail and explain how we come to these conclusions and publish updates.

We always ask companies for confirmation on information, cross check RNS’s and other respected information outlets. Sometime it is hard to substantiate verbal comments from sources and we usually wont use this information if no one is willing to go on the record.

When we covered Angus, Share Talk contacted Surrey County Council to clarify a few pointers raised and spoke with the Minerals and Waste team manager Mr Stone. He confirmed the current work being carried out on site has planning permission to work on the existing bore hole.

In a nut shell this entails a work over land rig used in cleaning operation’s, casing work, collecting – log data. ANGS can not as a operator increase depth in their current drill – vertically, this also includes any lateral deviation for the current planning permission.

But keep in mind Optiva Securities broker notes published September 2016 that included the following paragraph below.

*Angus’ key strategic benefit is that it already has a production licence with permits to drill up to six wellbores. The existing wells could be converted into horizontal producers to access the full potential via an ‘octopus’ drilling pad solution. With an individual horizontal well estimated to be capable of delivering up to 2,500 bopd, based on the initial HH-1 well test results, we believe that major development is possible with the appropriate funding.
Copyright © 2015 Optiva Securities Limited, all rights reserved. Additional information is available upon request. Member of the London Stock Exchange. Authorised and regulated by the Financial Conduct Authority.

*Optiva Securities acts as broker to Angus Energy PLC

Our interpretation to Mr Stones comments, the operator has the land rig on site and is re-visiting/drilling the current bore hole to get a better understanding of the geology using more modern data. Core samples will have to be studied, analyzed because BP drilled Brockham-1 well in through the Kimmeridge Limestones (micrites) although it did not test them in 1987 *

*In 1987 BP drilled the Brockham-1 well through the Kimmeridge Limestones (micrites) although it did not test them • We therefore know the presence and thickness of these layers at Brockham that tested so successfully at Horse Hill-1 • Angus’ Brockham field partner Doriemus commissioned Nutech to make a comparative analysis of the Horse Hill-1 well and Brockham-1 • It is still early stage but Angus believes that the maturity and fracture analysis, coupled with offset well information indicate that the Kimmeridge Limestones show potential of natural fracturing and warrant a proper assessment with the BR-X4Z side-track.

We have had reports of wagons entering the site/concrete foundations being constructed – strengthened on site, the last count we heard was 16 trucks had visited the site in the past month. Weather played a factor in time delays but we are once again being told unofficially that these operations have been completed.

David Lenigas confirmed that concrete was being used on site in his twitter account while interacting with one of the Share Talk team.

We can not confirm these claims independently because the representatives, companies involved will not be quoted official to go on the record comment. Due to the sensitive nature of drilling in the UK, we have spoke with people involved with the Weald Basin operations and have said they do not want to be interviewed at this time.

David Lenigas twitter feed makes very interesting reading, never one to shy away from social media and his tweets always draw investors like bee’s round a honey pot. The quote ” a picture paint’s a thousands word” well Mr Lenigas is the master craftsman and i dont think he can be any more up front on updating the public from his account.

The outstanding questing now? When will Angus spud the new horizontal drill OR are we missing something hear? until the next time, all eyes are on the Weald Basin.