Angus Energy Plc (LSE:ANGS) is an AIM listed oil and gas exploration and production company with a portfolio of assets located in the United Kingdom.
Angus Energy was admitted to AIM in November 2016 and raised £3.5 million in new equity through the issue of c. 58.3 million ordinary shares at a share price of 6 pence each.
Following the admission, ANGS had c. 215 million shares in issue and the market capitalisation of the company was £12.89 million.
In September 2020, the company had c. 604 million ordinary shares in issue and the ANGS share price was 0.9 pence, giving it a market cap of c. £6 million.
Overview of the company’s assets
Angus Energy has an interest in the following portfolio of assets, all located onshore in the UK:
Brockham: Owns a 65% majority interest in a conventional oil production field at development and testing stage. Currently has planning permission for six wells.
Lidsey: Owns an 80% interest in a conventional oil production field at the development testing stage.
Balcombe: Owns a 25% interest in a conventional oil production field which has achieved high flow rates for a short period
Holmwood (A24 Prospect): Owns a 12.5% minority interest.
Saltfleetby gas field: Acquired a 51% interest in June 2019. Prior to shut-in in 2017, this field had previously been the UK’s largest onshore gas field. A Competent Persons Report released in March 2020, indicates 2P gas reserves of 16 billion cubic feet (BCF) and c. 97,000 barrels of condensate. These reserves are forecast to generate a net present value of between £16.7 million (conservative case) to £35 million (optimistic) to Angus.
Carrying value of the assets:
The latest interim financial statements to 31st March 2020, indicate that the carrying value of oil & gas production assets was £6.416 million. The recoverable value of Brockham and Lidsey is based on the net present value of estimated future net cash flow which assumed an oil price of US$ 63 per barrel and a discount rate of 10% (in the September 2019 annual report).
The carrying value of exploration and evaluation assets (the Balcombe licence and Saltfleetby gas field) was £6.366 million.
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