Last checked at 20 Dec 2019 17:23
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET ABUSE REGULATION (EU No. 596/2014) ("MAR"). THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.
20 December 2019
Angus Energy Plc
("Angus Energy" or the "Company")
Balcombe Oil Field Update
Angus Energy plc (AIM: ANGS) is pleased to announce the submission of a revised Hydrogeological Risk Assessment report (HRA) to West Sussex County Council (WSCC). The report will shortly be available on the WSCC planning portal at https://westsussex.planning-register.co.uk/Planning/Display/WSCC/071/19
The HRA updates risk assessment of sub-surface and downhole operations, but importantly provides detailed description of fluid containment and management at the surface. In particular, the HRA, and supporting Design Philosophy Statement, identifies those soil and water protection measures to be put in place for Phase 2 of the Extended Well Test with a designed lifetime well in excess of the expected term of that Test.
The Company is regularly questioned and is constantly reviewing its expectations for flow rates at the Balcombe 2Z Well. In investor meetings and conference calls estimates as low as 300 barrels of oil per day (bopd) have been mentioned. To clarify, the Company cannot accurately predict flow rates based on the limited information available, but it is possible to use geological information and analogous rates from offset wells.
In this regard, the Company has noted that the Balcombe 2Z well addresses a horizontal length of approximately 1700 feet within one of the two Kimmeridge Limestones tested together in the Horse Hill 1 well. We understand that at Horse Hill a 360 feet vertical section of similar Kimmeridge Limestonachieved rates of 200-300 bopd, publicly reported. Whilst it is sometimes hard to compare horizontal and vertical well productivity, especially in naturally fractured reservoirs, it is reasonable to expect we can at least achieve similar or better rate so other things being equal, the Company does believe that the estimate mentioned above for Balcombe may be overly pessimistic.
George Lucan, Managing Director, writes "We are pleased to be submitting what we believe to be an exceptionally thorough report to WSCC to meet the stringent standards expected by the Environment Agency.
As regards estimates, in the past the Company has raised a high bar in expectations which have not subsequently been met. The Board is anxious not to repeat that error, nonetheless the technical team here remains upbeat."
Technical Sign off
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.
END.
Enquiries:
Angus Energy Plc | www.angusenergy.co.uk |
George Lucan | Tel: +44 (0) 208 899 6380 |
Beaumont Cornish (Nomad) | www.beaumontcornish.com |
James Biddle/ Roland Cornish | Tel: +44 (0) 207 628 3396 |
WH Ireland Limited (Broker) | |
Katy Mitchell/ Harry Ansell | Tel: +44 (0) 113 394 6600 |
Flagstaff PR/IR | angus@flagstaffcomms.com |
Tim Thompson | Tel: +44 (0) 207 129 1474 |
Fergus Mellon |
Notes
About Angus Energy plc. Angus Energy plc. is a UK AIM quoted independent onshore oil and gas production and development company focused on leveraging its expertise to advance its portfolio of UK assets as well as acquire, manage and monetise select projects. Angus Energy majority owns and operates conventional oil production fields at Brockham (PL 235) and Lidsey (PL 241) and has a 25% interest in the Balcombe Licence (PEDL244) and a 12.5% interest in the PEDL143 Licence (A24 Prospect).