Angus Energy Plc (AIM:ANGS) Lidsey Oil Field Update

Angus Energy Plc, a conventional oil and gas production and development company, is pleased to provide an update to the Company RNS of 17 November 2017.

Operational Update – Lidsey Oil Field

· The Lidsey-X2 well experienced significant gas locks at pump causing the original equipment to cease operation.

· A 150 bopd pump with a 120-meter tailpipe extension was installed (prior to the 17 November RNS). This pump did not gas lock or cease functioning however every six hours the rate declined significantly with bubbly oil recovered to surface even though production is above bubble point.

· The flow rate of 40 bopd, per the company RNS of 17 November was recorded from Lidsey-X2 on Thursday 16 November whilst attempting to identify the down hole issues. The company notes this current rate is twice the historical output from the Lidsey field.

· The Lidsey-X1 well, shut in since January 2016, to be brought back in to production.

· Angus Energy has put in place a comprehensive diagnostic program with the help of external experts to make all necessary repairs and adjustments to further conventional oil production at Lidsey and increase yield from Lidsey-X2.

Geochemical Analysis Update – Lidsey-X2

Angus Energy is pleased to provide an update to the Company RNS of 6 November 2017. The Company has now received final results from a third-party study of tests performed on the Kimmeridge Layer and Oxford source rocks of Lidsey-X2.

These results were received after Angus Energy fulfilled its statutory requirements to release the above mentioned RNS of 17 November 2017.

Per the Company RNS of 6 November 2017, detailed geochemical analysis of all potential hydrocarbon bearing formations encountered in the Lidsey-X2 well has been performed. The Group carried out similar work on its Brockham assets and compared the results from Lidsey-X2 with Brockham and data from Horse Hill-1 – the first well in the UK to successfully test oil from the Kimmeridge – as summerised below.

The Company has received confirmation, the Lidsey-X2 has TOC (total organic content) values similar to the Brockham and the Horse Hill-1 well and is comparable to the Bakken Shale formation (US).

The historical temperature reached by the rock is estimated with the RockEval pyrolysis analyses method. Angus Energy has received third party confirmation, the values seen at Lidsey are similar to those seen in Horse Hill and the Bakken Shale formation. In the Bakken Shale the onset of oil generation is at a Tmax of around 420-425deg F and this is met in both Brockham and Lidsey. The Bakken formation is a hybrid reservoir like the Kimmeridge in that it has fractured limestones which enable natural production. It is therefore a close analogue to the Kimmeridge in both the generation of oil and how it can be produced.

The results received on Friday were unexpected as basin modelling of the Weald Basin in recent years has suggested that peripheral areas such as the location of Lidsey would not be expected to reach these temperatures. These temperatures appear sufficient to generate oil thus far.

The amount of oil generated cannot be measured directly but is indicated by the metrics S1 and S2 reflecting the total oil content and H1 the hydrogen index.

The newly confirmed third party review of the Lidsey data and the earlier reviewed Brockham data indicate the hydrogen index Tmax plot for the Kimmeridge at Lidsey and Brockham to be within the same envelope as Horse Hill-1 and the analogue of the Bakken Shale formation. Similarly, S1 oil content and oil saturation index derived from it, for both the Lidsey and Brockham wells also fall in the same envelope as Horse Hill 1 and the Bakken. The Company believes this data demonstrates that significant producible oil has been generated.

The Kimmeridge was encountered at Lidsey-X2 between 782.3m-862.4m MD (with a true vertical thickness of 66.2m). Lidsey has a thinner Kimmeridge section than Brockham and Horse Hill with less limestone present. But nonetheless the limestones seen are likely to be fractured and Angus Energy plans to attempt production from this zone.

There are two other major source rocks seen in Lidsey as well as Brockham – the Oxford (with a true vertical thickness of 105.0m at Lidsey-X2) and the Lias (located below the Great Oolite reservoir but drilled with the Lidsey-X1 exploration well). These are deeper formations indicating greater thermal maturity. Angus Energy has also received confirmation these formations compare favourably as far as organic content and oil generation.

Further data is available on the company website here.

Per the Company RNS of 17 November 2017, Angus Energy will submit an FDP Addendum to the Oil and Gas Authority (“OGA”) to begin production appraisal of the Kimmeridge and Oxford layers at Lidsey.

Qualified Person’s Statement:

Chris de Goey, a Non-Executive Director of the Company, who has over 20 years of relevant experience in the oil and gas industry, has approved the information contained in this announcement. Mr de Goey is a member of the Petroleum Exploration Society of Great Britain and the Society of Petroleum Engineers.



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