ANGUS ENERGY AGREES TO ACQUIRE 25% OF THE BALCOMBE LICENCE (PEDL244)

Cuadrilla Balcombe Limited and Lucas Bolney Limited are pleased to announce a new joint venture partnership with Angus Energy Plc, an oil and gas exploration, production and development company.

Angus Energy will join the existing Cuadrilla / Lucas partnership through the acquisition of a 25.0% interest in UK onshore licence PEDL244 which includes the entire Balcombe Field discovery in West Sussex.

On behalf of the joint venture Angus Energy, which is an existing onshore oil and gas operator in the South East of England, will, subject to UK regulatory (Oil and Gas Authority) consent, take over Operatorship of the PEDL244 licence from Cuadrilla. Angus Energy will, in due course, commence the approved well test program of the existing horizontal well at the Lower Stumble site.

Francis Egan, CEO of Cuadrilla, said:

“Following the approval of our planning application to flow test and monitor the existing horizontal exploration well at Lower Stumble we are delighted to form this new partnership with Angus Energy, an existing and successful operator in the area. This agreement will enable the testing works of the existing well to be undertaken in a timely way and to the highest standards, whilst we continue to also focus on our shale gas operations in the North West.”

Paul Vonk, Angus Managing Director, commented:

“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.

We are also looking forward to the near term testing of Balcombe-2Z horizontal well as it will further add to our extensive existing knowledge base and understanding of the Kimmeridge layers of rock. ”

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.

All operations at Balcombe will be performed through conventional production. There will be no hydraulic fracturing as the rock is already naturally fractured.

 

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