Angus Energy made its AIM debut Monday having raised a comparatively modest £3.5million - but it arrives on the junior market with some big plans.
It is worth stressing this isn’t some exploration punt targeting crude in the wild waters off West Africa.
No, it’s onshore, UK-based and focused on production and development.
Providing the upside to the base case is an asset called the Brockham Oilfield in Surrey. It shares many geological similarities with the nearby Horse Hill discovery, over the border in Sussex and better known as the Gatwick Gusher.
In fact Angus was one of the driving forces behind Horse Hill before it divested its stake to concentrate on Brockham, one of two assets it is bringing to market.
The initial plans are fairly modest. It will perform a side-track at Brockham and drill a new horizontal well on the other licence, Lidsey, in West Sussex.
The idea is to get production up to around a ‘gross’ 400 barrels a day.
The operating expenses for these assets are between US$14-20 a barrel, meaning Angus is likely to be cash generative even at the current depressed oil price.
In drilling the side-track at Brockham, Angus will first go into the Portland sandstone, host to a known oil play that is already generating 35 barrels a day.
It will then push on into the Kimmeridge, before perforating a horizon called the Coralian.