Angus Files Plan for UK's Saltfleetby Gas Project

Angus Energy has filed a development plan with the Oil and Gas Authority (OGA) for the Saltfleetby gas field in East Lincolnshire in the UK, the London-listed player said in a stock filing on December 20.

Saltfleetby, which entered production in 1999, was formerly the UK’s largest onshore gas field. After most of its gas had been extracted, plans were put forward to use the field’s reservoirs for gas storage, but the project was later judged uneconomical.

Angus secured regulatory approval to buy a 51% stake in Saltfleetby on December 2, while the remaining share is held by Wingas Storage, a subsidiary of Russia’s Gazprom.

The independent firm’s plan is to exploit the field’s remaining gas, which would have been used to maintain pressure for storage operations. It may later consider its use as a carbon sequestration site.

“Progress continues to be made on this reconnection of what was formerly the UKs largest onshore gas field,” Angus’ managing director, George Lucan, said. “There are some considerable technical challenges which our team here are in the process of meeting and overcoming. We remain certain that, as advised, the prize for this very attractively priced opportunity will result in considerable value for shareholders.”

According to Angus’ updated timeframe, a competent person’s report on Saltfleetby’s reserves will be completed in January or February. In the first half of 2020 it will design the field’s new facilities and strike an offtake deal for its gas with a major. Construction is expected to begin in May.