AN(g)US Energy. It Goes From Bad To Worse…. Another #Placing On The Way…..

The Angus Energy (LON: ANGS)  ‘Jackanory’ just keeps going from bad to worse. Todays ‘epistle’ from the ‘Kimmeridge Crackpots’ sees ANGS throw their hat into the Balcombe license. Balcombe was first drilled and abandoned by ConocoPhillips in 1986 it was then left to rot until the fracking outfit Cuadrilla drilled an appraisal well then a side track in 2013. Both wells were again abandoned after the ‘appraisal’ appraised them as worthless. That’s because no oil flowed from any of the zones drilled and obviously the ‘fracking case’ couldn’t be made at the time because of the political fallout.

So what better for the Board of Angus to take 25% off Cuadrilla/Lucas Bolney Ltd and start up a rinse repeat operation screaming kimmeridge…. Great business…….

Abandoned by 2 other oil companys…

Lets spend over £4,000,000 that we don’t have and take 25% of an abandoned well! We’ll not put in the details of the well and the side track being abandoned, instead we’ll talk about kimmeridge. Even though we’ve got absolutely no production whatsoever from the kimmeridge clay either at Lidsey or Brockham. Apart from the facts that we have cash-burning capex at Lidsey and Brockham as well as hefty drilling cash commitments of £800,000+ at Holmwood1, not to mention the ongoing PLC costs of an AIM listed company….

Sounds like the ‘Jackanory’ has failed to realise several salient points. The first being that most now know that the constant allusions to kimmeridge ‘Billions I tell ya Billions of Barrels of Oil’ are about as truthful as that well-known corporate bullshitter (Lord Liealot), David Lenigas not selling his UKOG/ANGS shares into the orchestrated Pump & Dump. The others being that common-sense dictates that ConocoPhillips and Cuadrilla deemed Balcombe to be a failure, which is why both companies abandoned it and Cuadrilla/’Baloney’ has farmed out 25% to ANGS.

But hey let’s be rather generous, ’cause I’m a generous chap, and say that Balcombe actually flows oil. Well then you can expect that it will be a bread and butter piss poor producer on-trend with that other world-changing über ramped global changing ANGS asset, Lidsey. Scores on the production doors 40bopd that’s 20bopd net to Angus. Lidsey is uneconomic. And production at Lidsey is falling….

I’d say that cash at Angus is like the great kimmeridge and Lidsey/Brockham fairytale OIL JACKANORY, rather thin on the ground and stretched to breaking point.

There’s a huge financial gap that needs to be plugged to keep the ‘Show’ on the road. £5,000,000 placing looks likely to me. And for those ‘Howler Monkeys’ who are screaming NEX Bonds…. Please don’t make me laugh. You’ll note that the Company have not updated on the NEX Bonds since 29th September 2017. That’s because the NEX Bonds are dead in the water, them being tied to production and a declining 20bopd doesn’t get you much in the way of cash on the Bond….

The share-price is headed down and could hit 3p. That’s about what they can expect to get on the next placing and make no mistake there’s another huge discounted placing coming.





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