Angus Energy ups average monthly production amid strong prices

24 Jul 2023

Angus Energy PLC announced on Friday that it is experiencing positive outcomes due to the high value of gas prices. Throughout the month of June, the company's production level was consistently at 80,000 therms per day.

The energy company that focuses on oil and gas development in the United Kingdom disclosed that it achieved an average daily production rate of 80,000 therms in June and 92,000 therms during the initial 18 days of July.

From July 1 onwards, the company's daily hedged volume has diminished to 50,000 therms per day. This decrease will persist until July of the following year, when it will further decline to 21,666 therms per day.

As a result, Angus is currently generating a considerably higher amount of gas than what was initially planned and is reaping the rewards of favorable gas prices. It is projected that this level of production will continue to be sustained at around 90,000 to 95,000 therms per day throughout the upcoming quarter.

According to Angus, it earned a total gas revenue of GBP1.7 million in June, considering the existing prices and hedges.

In the coming years, Angus has expressed anticipation that the winters of 2023/2024 and 2024/2025 could bring about price surges due to "struggles between nations and the likelihood of sudden cold weather". Consequently, the company has decreased its future protection against financial risks.

Angus has recently decreased 50% of its hedge position during the latter portion of 2024 and the initial portion of 2025. Additionally, it has reached an agreement to finalize certain quantities at predetermined prices beginning in the third quarter of 2024.

The company has also stated on Friday that it successfully finalized a junior debt facility worth GBP6 million with Aleph Finance Ltd, a partner company of the company's significant stakeholder, Aleph Commodities Ltd.

The stocks of Angus Energy finished the day at a decrease of 0.9% at 0.92 pence in London last Friday.

Written by Heather Rydings, an experienced journalist covering economic topics for Alliance News.

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