28th Jun 2019 10:56
(Alliance News) - Angus Energy PLC on Friday said there is little chance any hydrocarbon flow can be established at the Brockham field at commercial rates.
Angus earlier in June began the second stage of work at Brockham, in southern England's Weald basin, and following analysis of the results no conventional technique could extract hydrocarbons from the Kimmeridge layer.
The company, which operates the field, does not plan on attempting any unconventional methods.
Angus has now begun talks with a third party over selling its 65% interest in the licences on which Brockham is situated, though negotiations are at a "very early" stage. It is thus considering making an impairment on the licence, which makes up 26% of the company's carrying value.
Managing Director George Lucan said: "The result from recent works is clearly disappointing although as stated above we are examining our options for the PL235 licence including the Brockham site.
"This serves to underline the importance of our strategy of diversifying our source of hydrocarbons by participating in the developments of fields which already have a proven production record but bring with them very substantial reserve opportunities. The Saltfleetby opportunity which has been brought to shareholders fits exactly this profile and will also complement the near term stable cash flow we anticipate, with a high level of confidence, from our onshore oil interests at Balcombe."
The Brockham update was noted by Alba Mineral Resources PLC, which has a 5% stake in the licence.
Angus shares were 52% lower on Friday morning at 1.70 pence, with Alba down 18% at 0.18p.
Elsewhere, at Angus' PEDL244 licence in West Sussex, the licensing period has been extended to July 2020. The partners are planning on applying for planning to carry out an extended well test.
Related Shares:
Alba Mineral ResourcesAngus Energy