Angus Energy plc’s rise in losses could see it raise further funds for its onshore oil and gas assets in the United Kingdom.
FINANCES
The company’s audited annual accounts for the year ended 30 September 2022 showed losses of £111.947m, which included a derivative loss of £110.309m in relation to the derivative instrument, resulting in an adjusted operating loss of £1.638m (2021: loss of £2.455m).
“The derivative loss is based on future production and calculated using forward gas prices as at 30 September 2022,” said Angus.
“The derivative will be realised to a profit or loss when the payments under the derivative instruments become due.”
Revenue from oil and gas production was £3.142 million (2021: nil) based on production of a gross 1,378 bbls of oil and 1,273,994 Therms of natural gas (2021: nil).
The increase followed resumption of production from the Brockham oil field in Surrey and Saltfleetby gas field in Lincolnshire
Administrative costs rose to £2.619m (2021: £1.918m) as the company began gas production, although Angus added it continued to cut corporate and operational costs.
CAPITAL RAISE
As at 30 September 2022, the company’s auditors added that for Angus to be a going concern depended “on the group and company’s ability to raise further financing to cover its ongoing working capital requirements.”
“These conditions, along with other matters, indicate the existence of a material uncertainty which may cast a significant doubt about the group and company’s ability to continue as a going concern.”
OUTLOOK
Chairman Patrick Clanwilliam said that Angus aimed to maximise its portfolio by evaluating the Southern lobe at Saltfleetby which has “a further 20bcf of 2C contingent resources” and also looked forward to “positive cashflows for the year ahead”.
The company will additionally assess gas storage potential at Saltfleetby, future geothermal projects as well as resuming production from its oil assets.