Angus Energy plc said it expected higher revenues than previous estimates from the Saltfleetby gas field (SGF) in Lincolnshire.
PROGRAMME
The company added it had employed contractors for the drilling programme and that it expected costs of the sidetrack to overrun.
REVENUES
A revised competent persons report (CPR) by Oilfield International Ltd using a conservative discount rate of 10%, reported:
A conservative case, or P90, NPV10 of £25.4 million (February 2020 estimate: £16.7m) and
a mid-case, or P50, NPV10 of £38.5m (£25.2m).
Expressed as estimates of net future cashflows, after taxes but without discounting, Angus’ 51% interest is a conservative, or P90, sum of future cashflows to Angus of £31.7m (£21.5m); and a mid-case, or P50, sum of future cashflows to Angus of £55.9 million (£36.3m)
SIDETRACK
The CPR added due to that Covid-related logistics issues, first gas would be on 15 March 2022 but Angus said it would pursue its own schedule of commissioning with first gas during February 2022.
For similar reasons, the CPR said that there was uncertainty about the precise start date for the sidetrack well as one major piece of rig equipment was awaiting shipping from overseas.
The CPR also noted a 16% anticipated cost overrun on the sidetrack partly due to rising material and logistics costs.
Angus also undertook a full third party reprocessing of the 3D seismic and reinterpreted a limited block around the target well path.
CONTRACTORS
Contractors to advise on the drilling programme include a new wells manager, a mud and drilling fluid specialist, a rig evaluation specialist, Wellspec to advise on managed pressure environments, and a third party review of the drilling programme by Norwell Engineering.
Angus added that the drill programme had been reviewed by the senior lenders’ own upstream technical committee.