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Most popular questions
- 75% of the UK’s total energy comes from oil and gas, 42% of electricity is from gas fired power, 24 million homes rely on gas for heating and hot water. Even with an accelerated renewable programme this will not materially change on a 5-10 year time horizon, or potentially even longer. In fact, there are forecasts showing gas usage increasing in the next 3-5 years.
- This is besides the role gas will play in supplementing huge increases in power generation demand: 10% to keep up the UK’s leading edge in Artificial Intelligence and datacentres and 10% for transport electrification. Renewable electrification will be further constrained by the electricity grid which will require an upgrade/replacement of 75% of the wires supplying our electricity. Even if we wanted to replace the grid in a few years we would require almost all worldwide copper production. Gas is here to stay for the foreseeable future.
- No, it provides just over 50% of gas consumed and this is set to fall through field depletions and the decline/collapse of investment under new tax rules. Unless there are major changes in the taxation system, domestic supply could be 30% of demand by 2030, with the UK importing 70% of its gas supply.
- The UK will continue to be reliant on gas for years to come while supply decreases.
- Maximising domestic supply is key to energy security. LNG supply can easily be disrupted by weather (strong winds would also disrupt wind turbines), problems in the Middle East, gas export restrictions in the US (environmental and political) and sanctions.
- Gas storage has not been a priority for the UK, which only has a few days of gas storage capacity in comparison to other European countries some of which have over 90 days.
- The UK needs low carbon, efficient oil and gas supply, especially gas for power generation. There is currently no alternative.
- Angus is looking at leveraging its expertise to develop new options at Saltfleetby – using natural gas storage as a back up to renewable energy in power generation
- There is scope for CO2 capture / storage which is key to decarbonisation. We are actively reviewing this opportunity. As gas will continue to be used as a source of energy, the only way to begin to meet environmental targets is through carbon capture techniques.
- LNG, but its CO2 footprint is 4x more environmentally damaging than domestic gas. It also creates few UK jobs, contributes no energy security, pays no tax revenues and damages the country’s balance of payments.
- Hydrogen could be used as a source of power generation and mixed in with the current gas supply (up to 12%). This will be expensive, we still have little storage capacity and hydrogen production will take 10 years to implement on any scale.
- A large proportion of heating and power may eventually come from green sources but the undependability of wind and sunshine will remain challenging. This cannot be resolved with batteries as battery parks the size of Manchester would be necessary. Nuclear power may provide some of the answers but this is still 10-15 years out and will be expensive.
- To invest in its onshore UK assets to maximise recovery and returns.
- We are in the process of installing a booster compressor which is due to start functioning in the first quarter of 2025. This will stabilise production, reduce possible downtime and allow us to maximise the recovery of gas from the field over its lifetime.
- In the UK, we have the opportunity to drill new wells and/or rework some old wells to increase production of both gas and oil. Putting this into action will be subject to conditions for investment created by the new government. We will only invest in projects which generate solid returns for our shareholders and as we evaluate opportunities abroad, investment projects in our UK assets will need to compete for capital with international projects.
- We will continue our geological evaluation of the reservoir at Saltfleetby, where we believe there are further pockets of gas that could be brought into reserves and production in the future.
- We will examine ways of expanding crude production in our Wealden assets in southern England.
- We are committed to finding opportunities for storage. This could be natural gas storage or, longer-term, a carbon capture scheme.
- As we speak, we are actively pursuing options for both mergers and acquisitions leveraging the extensive experience of our world class team.
- There are around 300 small energy companies in the UK. Access to capital is very constrained, the opportunity for them to attract talent is limited and overhead costs are too high. The market is ready for consolidation through merger activity.
- For a number of reasons, the UK is no longer an attractive place to invest in the upstream industry. Growth opportunities in oil and gas outside the UK offer significantly more attractive returns for shareholders.
- We will consider compelling international acquisitions for onshore assets in North America and North Africa to improve existing producing assets.
- This will diversify geographic exposure and reduce reliance on the UK.
- We are focused on onshore opportunities in mature field management / efficiency.
- As Angus considers inorganic growth opportunities, it is supported by its strategic partners, Trafigura and major shareholder Kemexon.
- Strong cashflow generation through increasing production (through organic and inorganic activities) and creating a strong balance sheet. Historic low-price hedges imposed on Angus in 2021 when it obtained financing for the redevelopment of Saltfleetby will come to an end in June 2025, creating very healthy cashflow thereafter.
- Prudent financial management to maintain a low and competitive cost base.
- A solid foundation for growth, in tandem with improved liquidity and lower cost of capital post debt refinancing in February 2024.
- Reducing unit costs through growth.
- Industry-leading experience as a low-risk exploration and production player.
- Being part of the UK energy security solution.
- Superior shareholder returns through strategy of organic and inorganic growth.
- Scope for both appreciation in share price from a low base driven by revenue growth and EBITDA momentum, and dividends when finances support this.
- Increased production.
- Managed organic growth based on rising production, decreasing unit costs, robust liquidity and step changes through selective mergers and acquisitions.
- Existing strong EBITDA which will grow through organic and inorganic activity.
- In addition to recovering the proved and probable reserves of some 25 bcf remaining in the Saltfleetby field, Angus is focused on identifying additional asyet unquantified upside in the field and is evaluating the potential for long term gas storage in the Saltfleetby reservoir.
- Opportunities to contribute to lower carbon emissions through a commitment to evaluate natural gas and hydrogen storage and longer-term, CO2 storage.
