Hydrocarbon company Angus Energy plc announced it hopes to acquire Doriemus plc’s 10% interest in the onshore oil Brockham Licence (PL235) in Surrey.
The deal, if approved by the Oil & Gas Authority (OGA), would see Angus’ share in the licence increase from 65% to 75%.
Angus also said it would ask shareholders at its general meeting on 9 November if it can allot further ordinary shares, either for the Saltfleetby gas project in Lincolnshire or for general use.
The price of acquiring the extra 10% stake in the Brockham licence was adjusted to settle outstanding amounts due from Doriemus to Angus.
It was also a contribution towards the estimated share of long-term abandonment liabilities, totalling £260,000.
Once the transaction has been signed, Angus will add a further £100,000 to the existing £350,000 abandonment reserve for Brockham.
The extra amount reflected “a modest increase” in the company’s estimate of overall costs of decommissioning and site restoration at the end of life together with Doriemus’ share.
Angus said that oil recovery from Portland Sandstone at Brockham had been relatively low but that there were still “commercial volumes of extractable oil.”
In September 2020, the company reported that a hydrogeological risk assessment (HRA) was “well underway” and the wells and the site were ready to restart production once water injection has been approved.
It was also running a cement bond log to confirm the well integrity of the intended water injection well, BR3.
If the Environment Agency refuses to grant approval, Angus said it would look to abandon the field.
Managing director, George Lucan, added: “Whilst we await Environment Agency approval for water injection and the resumption of commercial production from the Portland, we continue to perform housekeeping on our eventual abandonment liabilities.”
In September Angus Energy plc announced it hoped to raise £12 million, with support from its 49% partner Saltfleetby Energy, to redevelop Saltfleetby Gas Field in Lincolnshire.(bit.ly/2GvaJC5)
It also raised raised £1 million from placing 111,111,105 new ordinary shares at 0.9 pence per share during the same month.