Share Talk highlight Oil & Gas AIM-listed companies: Part 1 –  Angus Energy PLC (AIM:ANGS)

 

Today we highlight a UKOG & ANGS hydro carbons AIM-listed companies that have caught shareholder attention lately. A few listed companies have relaunched themselves, some have suffered major setbacks from past heights, while others have gathered pace and are looking to expand. One thing is for sure, life is never dull on the Alternative Investment Market (AIM).

In part 2 we covered Canadian Overseas Petroleum Limited ‘AIM:COPL’ (TSX-V: XOP),  Angus Energy PLC (AIM:ANGS) & UK Oil & Gas Investments PLC (AIM:UKOG)

Today we take a look at Angus Energy PLC (AIM:ANGS) from Pre- IPO to today current market value and what the future holds.

With investors looking for a quick buck these days. It is achievable if you do your own due diligence, don’t follow the herd and don’t listen to the noise across social media. My personal experiences investing over the years, if it’s unloved – but the fundamentals add up, the good management team in place, assets – cash positive with a structured road map, sit up and pay attention.

 Angus Energy PLC (AIM:ANGS)

 

We have covered ANGS on Share Talk on numerous occasions, highlighting the IPO launch back in November 2016 and what progress the company has made to date.  Personally, I have taken a keen interest in oil play’s over the years and the Horse Hill story has been sheer drama, politics, hype, blood, sweat and tears for a few. We will cover the history behind horse hill, Angus Energy’s involvement as founders and the true prize that lay less than five miles to the southeast ‘Brockham’.

Plans a flotation before Christmas to join the junior AIM market 2015

Angus Energy management team alway’s made their intentions clear and it was easy to see the crack’s appearing in the Horse Hill Sisters relationship when in November 2015 the www.thisismoney.co.uk ran this story Angus Energy planning to join stock market to fund the expansion of drilling operations in Surrey and Sussex.

Another article appeared the following month Angus Energy set for AIM listing in late December 2015 one of the companies exploring for oil in the Home Counties, was planning to join the UK stock market.

Paul AbramVonk, managing director at Angus, said at the time that Brockhamnear Dorking, in Surrey, and in the Lidsey oil field near Bognor Regis, in West Sussex were already pumping about 50 barrels a day but extending the wells could raise output to 400 barrels a day. Vonk said that once the IPO was complete, the expansion would allow oil to be extracted at a cost of £15 a barrel or less, which would mean a healthy margin on the project.‘We think the existing assets are worth about £6 million,’

l am sure at the time l was not the only one watching this play out in the public arena and for me, the seed was sowed.  For the company at the time, this must have been a costly affair and as we moved into 2016 the status quo remained, for now!

A few who may read this article are aware that in the summer of 2016 discussions took place with two London city broker’s and a few high net worth investors to highlight that ANGS may try to list again. What l wasn’t to know at the time, a broker company had already made the move and beat me to the punch!

Share Talk published the head line ‘Angus Energy a small company with a bright future‘ back in November 2016, the image above is clearly asking the question, who will benefit from the Weald Basin?

Back Story

2009 Angus Energy PLC was founded.

2010 They qualify as a UK O&G Operator (this was a major step for the company as a private operator).

2012  Brockham and Lidsey Oil Field Acquisition.

2014

  • Horse Hill Development Ltd. (HHDL) founded by Angus Energy
  • Partners brought in to fund drilling of Horse Hill – 1 exploration well
  • Horse Hill-1 exploration well drilled and delivered on-time and on budget

Horse Hill Developments is a special purpose limited company vehicle formed to drill the Horse Hill-1 well and appraise and develop any hydrocarbons found.

Before we move forward, it is worth cosidering the bulletin points above make this all look straight forward, that is far from the truth because we know the process for any hydro carbon company has to go through in the U.K just to reach the point of being able to put the drill bit in the dirt.

With UK Oil & Gas Plc (AIM: UKOG) announcing on 3 February 2014  acquired a 6% interest in UK onshore oil producer Angus Energy Limited (“Angus”). A partnership was being formed and if anyone needed any further proof, the bolt out the blue came with this update on 4 March 2014 Work commences on Horse Hill-1 well in the UK Weald Basin

‘The RNS announce civil works have commenced on the Horse Hill site in the UK Weald Basin in preparation for the drilling of the proposed 2,646 metre (8,680 feet) Horse Hill -1 well on the Horse Hill Prospect, which lies about 3km from Gatwick Airport and is designed to test a number of promising conventional oil and gas targets.

On the 20 March 2014, the UKOG partners with Angus Energy for 14th onshore oil and gas bid round in the UK  announces that it has agreed to exclusively partner on a 50:50 basis with certified onshore operator Angus Energy Limited (“Angus Energy”)  bid round expected to be announced in Q2 of that year.

The Horse Hill project was moving fast and with Angus Energy, as the founders and operators, everything looked to be going to plan with the announcment ‘Drilling commences at Horse Hill’ in September of that year. The participants in the Horse Hill Prospect were HHDL (65%) and Magellan Petroleum Corporation (35%), Angus Energy owns 40% of HHDL.

With the news ‘Portland Oil Discovery, Horse Hill-1’  24 October 2014, the Weald Basin was here to stay, excitement among investors was growing and this was the starting pistol for what was to follow.

The Horse Hill-1 exploration group (Horse Hill sisters),  generated dramatic headlines in April 2105, with claims of a huge oil find near Gatwick airport. 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 has yet to be proven with further drilling planned in 2107.

 

2767cf0a00000578-0-image-a-32_1479128251417

Source:Reuters  

UKOG buys Angus Energy’s stake in Horse Hill -1.

Released 07:00 18-Apr-2016

Then on 18 April 2016 came the news ‘UKOG buys Angus Energy’s stake in UK’s Horse Hill -1 Oil Discovery‘ UK Oil & Gas Investments PLC announces that it has acquired all of Angus Energy Holdings UK Limited’s (“Angus”) remaining 7.8% interest in onshore Weald Basin licences PEDL137 and PEDL246 (“the Licences”). That gave UKOG a net working interest in the Licences from 19.968% to 27.3% at a cost of £1.8 million, UKOG received Angus’ 7.8% beneficial interest in the Licences via the purchase of Angus’ remaining 12% shareholding in Horse Hill Developments Limited (“HHDL”).

The Consideration, with an effective date of 15 April 2016, is comprised of £1 million in cash and £0.8 million in the form of 43,886,116 UKOG ordinary shares. Furthermore, £200,000 of the cash element will be paid directly by Angus to the Licence Operator, HHDL, to reconcile cash calls for the now completed HH-1 flow test operations. The transaction requires no further regulatory approvals.

UKOG continued to purchase more of  Horse Hill-1 (“HH-1”) acreage –  13 June 2016 Signed agreements with Celtique Energie and Magellan Petroleum to acquire 100% ownership of the 300 sq km (116 sq miles) Weald Basin licence PEDL234 (the “Licence”). Importantly, the Licence includes regulatory permission to drill the Kimmeridge at the Broadford Bridge-1 (“BB-1”) site. 

Why mention this particular news update?

This was a great bit of business at the time for UKOG back in 2016 ‘WHY’ Broadford Bridge-1 (“BB-1”) drill 2017 would cause the SP to spike from the May 2017 placing price – 0.80p, passing the 10p mark in just two month’s give or take the odd week with core sample’s, flow test’s still to follow. 

Weald Basin

We leave behind HH-1 behind and look at the birth of a company that would shine like a bright star. Share Talk has covered ANGS from IPO to the present day and this is a perfect opportunity to take a look at how far they have come in such a short period of time.

We will cover that in part2 of the Angus story later this week.

@ABMckinley

Further details can be found on the Company’s website www.angusenergy.co.uk


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