Angus Energy has released an updated Competent Persons Report (CPR) for its Saltfleetby Gas Field (SGF). The CPR includes a valuation of the cash flows from SGF, taking into account the revised capex, debt service costs, royalties, and hedging. The report shows a P90 NPV10 valuation of £57.1 million and a P50 NPV10 valuation of £64.5 million post-tax. The CPR also reflects the production performance from the three wells in SGF, with over 2 BCF of sales gas produced and exported since August 2022. The reserves uncertainty has been reduced, with P90 Gross Sales Gas Reserves increasing by 8 BCF to 24.2 BCF and P50 Reserves decreasing by 2.6 BCF to 27.2 BCF net of historic production.
The updated CPR takes into account the performance of the SGF wells from August 2022 to July 2023, with 2 BCF of sales gas processed and exported during this period. The CPR includes an allowance for plant availability and gas consumed in operations, with the company expecting gas usage to be lower than estimated once the plant stabilizes. Two additional wells are scheduled to enter production in 2025 and 2026 to extend plateau production and accelerate gas extraction.
The CPR also includes the net cash flow and NPV10 valuations, both pre-tax and post-tax, discounted to August 1st, 2023. The figures show the significant value of the field and the impact of the Energy Profits Levy on the valuation.
In addition to the gas reserves, the CPR also includes contingent gas and liquids resources in the Main Field Namurian Reservoir and Southern Lobe Westphalian Reservoir. The contingent gas resources are stated net of gas consumed in operations, with the figures for 1C, 2C, and 3C resources being higher than in the 2021 report. The contingent liquids resources are also included in the CPR.
Overall, the updated CPR for the Saltfleetby Gas Field reflects the performance of the wells, the reduction in reserves uncertainty, and the potential value of additional drilling to accelerate production.