Highlights:

• £12 million facility for the re-development of Saltfleetby has been signed, the Conditions Precedents have been fulfilled and facility is now available and being drawn
• Angus and Saltfleetby Energy Limited have now secured all funding required to commission the plant by Q4 2021 and achieve First Gas by December 2021
• By making the full £12 million facility available immediately, Angus is able to bring forward plans for the side- track well, which would be fully funded from the facility, and increase production to the plateau rate sooner than expected.
• With the financial, commercial and technical support of Mercuria, Aleph and its partner Albanwise Synergy, Angus continues its plan to re-develop the Saltfleetby Gas Field and develop Energy Transition projects, with a particular focus on Geothermal Energy.

Saltfleetby Drawdown and Initial Application of Funds

Angus Energy today announced that the Conditions Precedents to drawdown have been met, the full £12 million facility required for the re-development of the Saltfleetby Gas Field and the drilling of the side-track well is now fully available.

£5.84 million has currently been drawn down with the balance to be drawn over the coming weeks against invoices in line with the Field Development Plan and the Plans for the acceleration of production through the fast-tracking of the side-track well. 

Simultaneous with drawdown, the Company has hedged approximately 70% of the Company's and its partners' share of future gas sales, estimated under a conservative projection, for three years beginning in July 2022, providing Angus with downside revenue protection, all the while allowing the Company to capture upside in the event of higher gas prices.  The average achieved price under the Hedge, including all fees, costs and charges is 43 pence per therm.

Angus has initiated the following activities to implement its timeline to first gas by the end of 2021:

• Two gas compressors packages are currently being designed by specialist fabricators in Kent. Each unit is rated at 5 MMscf/d each with Caterpillar gas engines and Ariel reciprocating compressor sections. The engines and compressor ends have been identified and secured for the project. Delivery to site of the first pre-fabricated unit will be in October.
• A condensate stabilisation system is being designed by a Hull based engineering group with extensive experience supporting gas production operations in the region. Local UK fabricators have been contacted and build slots identified to allow for equipment manufacture to fit the project schedule.  This includes associated options for the Joules-Thompson dew pointing device and a desiccant dehydration system.
• Gas commercial sales meter and analyser skid incorporating state-of-the-art Honeywell equipment is completely designed and subsequently reviewed by the National Grid. The equipment is under fabrication in the UK working towards delivery in mid-July.
• Detailed design of the process facility continues with Aberdeen based engineering house, Optimus. The current design in progress will be iterated to include final equipment selections and matured into the complete design package. Bulk materials will be ordered based on the specifications developed in the detail design. HSE and Regulatory review will be progressed.
• Construction activities are planned over several months with multiple local specialist contractors. On site operations will commence in July with limited groundwork preparations on this pre-developed site. In situ fabrication of flowlines will commence in August and main production equipment will be connected as individual skid packages arrive.

In view of the revised timeline of the funding, the Company is now targeting commissioning of the field during Q4 2021 and First Gas around the year end.

KeyFacts Energy: Angus Energy UK country profile