Angus Energy plc is pleased to share with investors an update and adjoining presentation on recent work done by the Company on reprocessing and reinterpreting the Lidsey seismic data. One of the conclusions of the work is that previous seismic mapping both underestimated the aerial extent of the reservoir and most importantly its shape. As a consequence of which, the presentation addresses the likelihood that both wells X1 and X2 have been addressing the flank or edge of the structure rather than its crest.
The Company therefore intends to acquire a new line of seismic data and reprocess the existing seismic lines. Angus will reinterpret and remap the field using the new data with the aim of identifying a new drilling target. Assuming the further seismic line does not result in a wholly unexpected remapping, the Company will then explore farmout or other financing for a short sidetrack back to the crest of the structure, subject to Planning, EA and other regulatory permissions.
George Lucan, Angus CEO, comments: “Lidsey was one of the two oil fields which supported the launch of Angus onto the AIM at its initial public offering in 2016. Expectations were for over 250 barrels a day and the disappointment at low flow rates in late 2017 was one of two defining moments for the Company in its early years on the market.
The Company believes that the Field has more potential than previously considered and that our technical view concerning depth conversion and seismic interpretation will shortly be incontrovertibly confirmed by the addition on further short seismic line.
Clarification regarding Debt Funding Update
Further to the announcement released at 8.30am today, the Company advises that the references to the RNS of 19 January should have referred to 30 November 2020 (“Memorandum of Understanding on Saltfleetby Finance Facility and Geothermal Projects”). Additionally, and for clarification, the Mandate referred to anticipates the involvement of the group of investors led by Aleph. Thus the proposed £12 million Loan Facility has soft commitments and Mandate “best effort” commitments of approximately £20 million in aggregate.
Qualified Person's Statement:
Andrew Hollis, the Technical Director of the Company, who has over 40 years of relevant experience in the oil and gas industry, has approved the information contained in this announcement. Mr Hollis is a Fellow of the Geological Society and member of the Society of Petroleum Engineers.