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Angus Energy initiates Balcombe field partnership
Onshore oil and gas company Angus Energy has initiated its partnership with privately-owned exploration and production firm Cuadrilla after completing a £1.85m payment to the group.
Angus Energy will join Cuadrilla's existing partnership on the site with AJ Lucas through the acquisition of a 25% interest in UK onshore licence PEDL244, which includes the entire Balcombe Field discovery in West Sussex.
The joint-venture partners were set to seek consent from the Oil & Gas Authority for the assignment of interest in the license and the change of operatorship for the Balcombe Field Discovery.
Paul Vonk, Angus' managing director, said, "This transaction aligns with our goal of enhancing shareholder value and we believe is another important company milestone as we execute our business plan. Both the new partnership along with Cuadrilla's and Lucas' recognition of Angus Energy's ability to successfully manage and execute operations in a safe, environmentally sound and efficient manner at Balcombe are gratifying to our entire team."
"As part of the agreement, Angus Energy will pay the costs of the well test program. If the results of the well test are determined successful, the Company will assume the associated costs of a Field Development Plan submission to the Oil & Gas Authority which would also require further planning permission from West Sussex County Council and permit approvals from the Environment Agency," he added.
As of 0920 GMT, shares had dialled back 1.49% to 6.28p.