Will Lucan's Shareholders Benefit from Angus Energy's Success This Year?
Following a loss of £111.95m in the year ending September 2022, the important inquiry is whether or not investors in Angus Energy (LON:ANGS), which is listed on AIM, will experience any improvements in the present year.
This company strives to develop its collection of authorized UK possessions throughout onshore oil and gas production without the need for outside support.
It is important to mention that a significant portion of the loss, amounting to £110.31 million, was a result of a derivative investment made on future production forecasted using projected gas prices at the end of the year.
The contract for energy hedging involved the sale of half of the production from the Saltfleetby Gas Field in East Lincolnshire. This deal spanned three years, commencing from July 2022 and was made at a price established in Spring 2021.
It is understandable that prices have increased significantly during the period due to the Ukraine conflict. However, the production was only partially covered during that time.
The group, valued at £48 million and set to conduct their annual general meeting later this month, aims to utilize their knowledge to promote and enhance their collection of UK assets, while also acquiring, overseeing and profiting from specific projects.
Known as a self-reliant Energy Transition corporation, it possesses a supplementary assortment of eco-friendly gas progression resources, land-based geothermal initiatives, and previous oil yielding areas.
The corporation does more than working as the only operator with ownership over the Saltfleetby gas field, which supplies gas directly to the National Grid. They're also involved in exploration and production at their traditional oil properties of Balcombe, Lidsey, and Brockham.
Located near the village of Balcombe, approximately 8km south-east of Crawley, is the Balcombe site, also known as PEDL 244.
The corporation manages and has the largest stake in the license, currently owning 80% of the area.
The organization has announced their intention to utilize their expertise in geology, drilling and engineering to repurpose onshore oil wells for generating geothermal energy. Additionally, they also plan to use older fields for storing CO2 or hydrogen.
Richard Herbert, who previously served as Head of Exploration at BP, is set to become the new Chief Executive with full authority over daily business operations. Meanwhile, George Lucan is eyeing the position of Executive Chairman, where he will primarily concentrate on devising strategies and managing stakeholder relationships.
There are 3,484,101,882 available shares, with Forum Energy Technologies owning the most at 13.4%. Other shareholders include Aleph Fin C (6.60%), Kemexon (6.39%), Knowe Properties (2.81%), Jaspal Singh (1.17%), Gneiss Energy (1.14%), PJ Tidswell (0.81%), Marr Sebastian (0.61%), Aleph Commodities (0.53%), and Adegbenga Alabi (0.38%).
As Saltfleetby's production rates continue to rise, the company is optimistic about its ability to generate operational cashflow. They are confident in their abilities as a producer and are planning to conduct flow testing towards the end of March. Additionally, they expect gas export to begin on April 1st.
The company plans to pursue more gas opportunities and advance its geothermal projects in the south-west region of England. The ultimate aim is to not only increase shareholder value but also to contribute to the pressing need for energy transition projects.
The team aims to be a major participant in collecting, creating, and stocking gas. Having advanced its current concerns, it's now starting to take the initial steps towards fulfilling its goals.
Following a year of vast changes in 2022, the organization seems to be headed towards reaching its goal of increasing its sales of gas and generating profits in the coming year of 2023.
The stocks were previously valued at 2.72p in September, but now they are only worth 1.375p each. Despite this reduction, there is still considerable potential for growth.
