WTI (May) $94.41 -$18.54, Brent (June) $94.75 -$14.52, Diff -$34c*
USNG (May) $2.72 -15c, UKNG (May) 114.1p -6.92p, TTF (May) €45.815 +€1.41

Oil price

Oil ran up overnight, by just over three dollars as the ceasefire came under significant pressure, don’t they all? This time Iran has not reopened the Strait of Hormuz as per and apparently as they didn’t expect Lebanon to be still under fire from Israel they are now launching missiles again. 

Talks in Pakistan are scheduled for Saturday but at this rate the US forces in the area shouldn’t expect top stand down any time soon. The API inventory stats, which are pretty redundant at the moment showed a build of 3.719m barrels agains the whisper of a 1.6m draw, gasoline drew 4m barrels and distillates drew 600/- b’s.

Angus Energy

Angus Energy is pleased to announce its audited annual accounts for the year ended 30 September 2025, extracts of which are set out below.

I am pleased to present the Annual Report of the Company and its subsidiary undertakings for the year ended 30 September 2025.

The year ended 30 September 2025 was a period of continued operational progress at the Saltfleetby gas field alongside significant work to stabilise and restructure the Group’s financial position. Throughout the year the Board and management team remained focused on maintaining reliable gas production, optimising field performance and progressing discussions with creditors regarding the proposed refinancing and restructuring of the Group’s financing arrangements.

Saltfleetby remains the cornerstone of the Group’s operations. Production during the year benefited from continued optimisation of the field and the commissioning of additional compression capacity, supporting stable gas output and the delivery of cash flow from operations. The operational team has continued to focus on maximising production efficiency while maintaining safe and reliable operations across the facility.

A key operational milestone during the year was the installation and commissioning of a booster compressor at the Saltfleetby Gas Field. Following commissioning, the Group progressed further production optimisation initiatives aimed at improving well and facilities performance and supporting stable operational output. Following the year end, the Group also successfully completed a series of coil tubing workovers at the field designed to enhance well productivity and support continued production reliability.

Alongside operational performance, the Board devoted significant attention during the year to strengthening the Company’s financial position. During the period the Company began progressing the refinancing and restructuring of its financing arrangements with its principal creditors, including Trafigura, the counterparties to the Overriding Royalty Interest attached to the Saltfleetby Gas Field and Forum Energy Services Limited in respect of the deferred consideration relating to the acquisition of Saltfleetby Energy Limited.

During the year the Board and management team also evaluated potential accretive M&A opportunities. The Company’s shares were suspended from trading on AIM following the announcement of a potential reverse takeover, which the Board subsequently decided not to proceed with. Further to this, discussions regarding a potential minority non-operated interest, as previously announced, have not progressed, although the Company remains open to further engagement with the counterparty. The suspension has remained in place while the Company continues to progress the financial restructuring with its principal creditors.

Subsequent to the reporting date, the Company has continued progressing the refinancing and restructuring discussions and has reached agreement on the key commercial terms of the proposed arrangements. The Company is currently working with the relevant parties and its advisers to finalise the definitive documentation required to implement the restructuring.

The proposed restructuring is expected to simplify the Group’s capital structure, strengthen the balance sheet and improve the Group’s financial resilience. The Company’s shares will remain suspended from trading on AIM until the restructuring has been completed and the necessary regulatory and market documentation has been published. The Board remains focused on completing this process as soon as practicable and will update shareholders as appropriate.

Financially, the Group delivered revenues of £18.0 million and EBITDA of £8.3 million for the year. Cash generation benefited from disciplined cost control and improved operational reliability. In addition, a number of legacy hedging arrangements entered into in prior periods matured during the year. Certain positions crystallised into fixed settlement obligations that remained outstanding at the reporting date (see Note 22). The expiry of these hedges is expected to improve realised pricing and cash flows going forward, all else being equal, and enhance the Group’s financial flexibility.

Looking ahead, the Board’s immediate priority remains the successful completion of the proposed refinancing and restructuring arrangements while continuing to optimise production and operational performance at Saltfleetby. The Company will also continue to evaluate selective development opportunities and potential acquisitions that align with its technical expertise and disciplined capital allocation approach.

Subject to the successful completion of the proposed restructuring and supported by the continued stable performance of the Saltfleetby gas field, the Board believes the Group will be well positioned to pursue disciplined growth and long-term value creation.

On behalf of the Board, I would like to thank our employees, contractors, partners and shareholders for their continued support during a year of significant progress and transition. The Board remains focused on delivering operational performance, completing the restructuring process and positioning the Company to generate sustainable long-term value for shareholders.

Additionally, I would like to record the Board’s thanks to Richard Herbert, our former Chief Executive Officer, who stepped down during the year. He made a valuable contribution to the Group during a period of operational and financial transition, and we wish him every success for the future.

Financial and Statutory Information

Revenue from oil and gas production for the year was £18.0 million (2024: £21.8 million). This was generated from gross production of 30 Mbbl of condensate oil, 10.8 Mbbl of crude oil, and 18.3 million therms of natural gas (2024: 44 Mbbl of condensate oil, 2.6 Mbbl of crude oil and 26.5 million therms of natural gas), primarily from the Saltfleetby Gas Field and the Brockham Oil Field.

The Group recorded a profit of £0.14 million and EBITDA (revenue less expenses, excluding tax, interest, depletion, impairment and derivative movements) for the year of £8.3 million (2024: £10.8 million).

The Group recognised a fair value gain on derivative financial instruments of £9.1 million, reflecting movements in forward gas prices used to value the Group’s derivative arrangements as at 30 September 2025. These instruments will settle over time through future cash payments as production is delivered under the associated arrangements (see Note 22). The fair value movement recognised during the year is non-cash in nature and reflects the revaluation of future settlement obligations rather than current period operating cash flows.

The Company continued to focus on maintaining a disciplined cost base at both corporate and operational levels while upholding high standards of safety, professionalism and operatorship. Administrative costs decreased by £0.3 million to £2.9 million (2024: £3.2 million).

Outlook

Subject to the successful completion of the proposed refinancing and restructuring arrangements and supported by the continued stable performance of the Saltfleetby gas field, the Group will be well positioned to pursue disciplined growth while maintaining a continued focus on operational performance. The Board remains committed to capital discipline, operational excellence and the evaluation of value-accretive opportunities that align with the Group’s technical capabilities and strategic objectives, while remaining mindful of the principal risks and uncertainties described in this report.

Krzysztof Zielicki, Interim Non-Executive Chairman

This extensive statement covers pretty much everything going on at Angus at the year end and operationally looks to be improving with the installation of the compressor at Saltfleetby improving production. 

But the discussions continue and are still not concluded, the line is as follows, ‘The Company has reached agreement on the key commercial terms of the proposed restructuring and is currently working with the relevant parties and its advisers to finalise the definitive documentation required to implement these arrangements’.

Clearly the restructuring needs to be sorted before any sort of finality can be accepted and of course the relisting of the shares must be the priority for the board. Underlying this is a great business in an area of significant interest and particularly at the present time of uncertainty of gas supplies, it would be a shame if an agreement can’t be hammered out satisfactorily.

Operating Review

Following the progress outlined in the Chairman’s Statement, the year ended 30 September 2025 was characterised by continued operational development at the Saltfleetby gas field and significant work to stabilise the Group’s financial position. Saltfleetby remained the cornerstone of the Company’s operations, while management focused on maintaining reliable production, optimising field performance and progressing discussions with creditors regarding the proposed refinancing and restructuring of the Group’s financing arrangements. These initiatives, together with the strengthening of the management team during the year, position the Company to focus on operational optimisation and disciplined growth as it moves into the next phase of its development.

Safety and environmental stewardship remain fundamental to our operations. This performance reflects the strong safety culture embedded across the organisation and our continued commitment to operating responsibly.

During the year the Group produced 18.3 million therms of natural gas and 30 Mbbl of condensate from the Saltfleetby Gas Field, together with 10.8 Mbbl of crude oil from the Brockham Oil Field. Compared with the prior year and management’s production plan, gas and condensate volumes were lower as the field required a longer period to stabilise following the installation and commissioning of the Saltfleetby booster compressor, while Brockham delivered higher oil output reflecting improved well performance.

Operational efficiency averaged 89% during the period, reflecting planned shutdowns associated with the installation and commissioning of the Saltfleetby booster compressor and subsequent well optimisation activity.

A more detailed account of the Group’s operational performance during the year is provided in the Review of Activities section below. The health and safety of our employees and contractors, the protection of the communities in which we operate, and responsible environmental stewardship remain central to the way we operate. The Group is committed to maintaining high standards of regulatory compliance and continues to maintain open and constructive relationships with its regulators, including the North Sea Transition Authority (NSTA), the Environment Agency (EA), the Health and Safety Executive (HSE), and our local councils.

Business Review

The principal activity of the Group during the year continued to be onshore, conventional production and development of hydrocarbons in the UK.

Review of activities

Angus remains firmly committed to operating in a safe, responsible and environmentally sustainable manner. These priorities are overseen by management and embedded within the Group’s operational policies, procedures and control framework, and are reflected in the day-to-day activities of all field operators. During the year, operations were conducted in full compliance with applicable health, safety and environmental requirements, with no reportable HSE or environmental incidents.

Saltfleetby (100% Working Interest)

During the period the Company successfully installed the booster compressor whilst continuing to develop its well performance program and improving equipment reliability. Between September 2024 and May 2025, production declined by around 30%; following the booster compressor installation and ongoing well optimisation, approximately 10% of that decline was recovered, before the planned workover commenced subsequent to the reporting date (December 2025) at the Saltfleetby Gas Field. The workovers comprised coiled-tubing wellbore clean-outs in two wells, designed to remove drilling additives, lift accumulated liquids and remediate any near-wellbore damage that may have developed over time.  These workovers aim to improve production and reliability from the two wells. Initial results are encouraging. Average total field production has been approximately 6.3 mmscfd, representing an increase of circa 30% compared to the average daily production achieved during Q4 2025.

The annual 5-day shutdown in June was conducted with all safety related maintenance completed without incident. Operational Efficiency for the year is down 3% on the previous year’s performance with an average efficiency of 89% achieved, this is 3.7% down on our operating efficiency target of 92.7% primarily driven by planned shutdowns for the installation of the booster and commissioning period along with continued well optimization plans.

Building on the seismic reprocessing and remapping work completed in 2023, a static geocellular reservoir model was constructed across the Westphalian Sandstone and underlying Namurian reservoir at the Saltfleetby Gas Field.  The static reservoir model is now being history matched to produce a dynamic model, which is in turn being used to generate production forecasts for Saltfleetby.  Management expects the revised production forecasting approach to provide improved technical input by incorporating reservoir properties, flow dynamics and enhanced compression capacity. Forecasts remain subject to reservoir performance, operational factors and market conditions.

Previously, the Group used a 23% exponential decline curve for Saltfleetby production forecasting, based on historic production rates and the information available at the time. The revised modelling work is intended to support a forecasting approach that better reflects updated technical understanding of reservoir performance. The updated ‘no further action’ forecast is intended to reflect a production decline profile consistent with the revised reservoir understanding. The implications for long-term field life and economics will continue to be assessed as the modelling is completed and as production performance is observed.

The reservoir model, anticipated to be completed in Q2 2026, is intended to support the placement and optimisation of potential infill well locations and the generation of indicative production profiles for such wells. This will support the ongoing evaluation of longer-term options for the Saltfleetby field, including potential future storage applications (for example CO₂, natural gas or hydrogen), subject to further technical assessment and regulatory considerations.

Angus continues to assess the potential drilling of an additional well, which would add a fourth producing well to the field and is expected to accelerate production and enhance shareholder value. The well is currently in the preliminary design phase, with a target drilling date in Q4 2026 / Q1 2027, subject to the procurement and delivery timelines of long-lead items. If progressed, the proposed drilling schedule is expected to support incremental field production of approximately 2-6 mmcf/d from early 2027, subject to technical evaluation, and approvals.

Legacy monthly hedged volumes priced at an average of 42 pence per Therm and set at 1,250,000 Therms per month terminated in June 2025. During the year, the Group entered into additional hedging arrangements in accordance with its financing requirements. In July-December 2025, monthly hedged volumes were set at an average volume of 1,075,000 Therms per month at an average price of c. 88 pence per therm. As required under its loan agreement with Trafigura, Angus also struck hedges in 2026 set at an average volume of 530,000 Therms per month at an average price of c. 103 pence per therm. Please see Note 22 for the year-end hedge position and Note 27 for post balance sheet developments.

Brockham (80% Working Interest)

With a full year of production in the period we saw significant production increase of 10.8 Mbbl compared to 2.6 Mbbl in 2024. Average Brockham oil production increased to approximately 30 bopd (2024: 20 bopd); following well optimisation and surface facility upgrades, production averaged around 40 bopd in Q3 2025, reflecting improved operational reliability and production stability.

In parallel, the Company has reaffirmed its commitment to returning the BRX4Z well to production in order to further increase recovery from the Portland reservoir. Work to reinstate the well has commenced, with operations progressing in line with plan and completion targeted in Q2 2026. This activity forms a key part of the Group’s strategy to maximise value from existing assets through disciplined capital deployment and operational improvement.

Balcombe (25% Working Interest)

Following an initial seven-day well test in autumn 2018, a planning application was submitted in late 2019 for an extended three-year test of the Balcombe-2Z well, intended to recover residual drilling fluids and assess the well’s longer-term production potential. Planning consent granted in October 2023 was subsequently appealed by a local residents’ group, with the matter heard in the High Court in January 2025. On 16 April 2025, the Court ruled in favour of the Company, confirming the validity of the planning consent and the Company’s right to proceed with testing the existing well.

However, due to the prolonged uncertainty created by the legal challenge, the Company was unable to complete the detailed engineering, procurement and contracting work required to commence the well test. As a result, the Company has decided not to activate the existing planning permission and is currently preparing a revised planning application, following completion of a technical and commercial review of the site.

The Company continues to regard Balcombe as a strategically important asset. The outcome of the judicial review confirmed the robustness of the planning case, and the requirement to submit a revised application reflects timing and process constraints rather than any loss of technical or commercial potential. The Company will continue to engage constructively with the local authority and local community as it progresses the revised development plan.

Lidsey (80% working Interest)

Lidsey has remained shut in due to the high cost of produced water disposal. As part of a lower-impact and cost-effective solution, the Company has submitted a planning application to permit the transfer of produced water off-site to the Brockham oil field for voidage replacement and pressure maintenance. Subject to approval, the Company intends to progress a programme of low-cost well-integrity testing, confirm the operability of the existing artificial lift system, and assess the reinstatement production potential of the X2 well. If successful, this approach would enable the phased return of the site to production, with produced water transported to Brockham for injection.

Financial Review

At the beginning of the period, the Group held interests in 80% of Brockham (PL235), 80% of Lidsey (PL241), 25% of Balcombe (PEDL244) and 100% of the Saltfleetby Gas Field (PEDL005), following the acquisition of Saltfleetby Energy Limited on 23 May 2022.

The Group reported a cash balance of £2.1 million as at 30 September 2024. During the year, 565,038,604 ordinary shares were issued in connection with the conversion of deferred consideration and accrued interest (see Note 15). The cash balance at the end of the reporting period was £1.1 million.

Revenue from oil and gas production amounted to £18.0 million (2024: £21.8 million). The Group recorded a profit of £0.14 million. EBITDA for the period was £8.3 million (2024: £10.8 million).

The Group recognised a fair value gain on derivative financial instruments of £9.1 million, reflecting movements in forward gas prices used to value the Group’s derivative arrangements as at 30 September 2025. These instruments will settle over time through future cash payments as production is delivered under the associated arrangements (see Note 22). The fair value movement recognised during the year is non-cash in nature and reflects the revaluation of future settlement obligations rather than current period operating cash flows.

The Group’s financial objectives are to increase revenue, deliver sustainable profitability and strengthen the asset base. Progress against these objectives is monitored through key performance indicators focused on revenue, margins, profitability and cash flow, consistent with investor reporting expectations.

Governance, Compliance and Shareholder Relations

The Board comprises a Chairman and Finance Director, supported by Non-Executive Directors with relevant sector and public market experience. As disclosed in the Corporate Governance Statement, certain Non-Executive Directors represent significant shareholders and are not considered independent under the QCA Code. The Board is committed to strengthening its composition and governance framework as the business stabilises and grows. During the year, the Board undertook a comprehensive review of the Company’s governance and leadership framework following the refinancing and changes in Board composition. The Board has reviewed and strengthened its remuneration framework to ensure that incentives are closely aligned with operational delivery, financial discipline and long-term shareholder value.

The Board meets regularly and is supported by the Audit Committee, Remuneration Committee and AIM Rules Committee, ensuring appropriate oversight of governance, financial reporting, remuneration and regulatory compliance.

The Group operates with a lean management structure, comprising 26 employees including senior management, supplemented where appropriate by experienced third-party contractors. This approach supports operational flexibility while maintaining effective oversight and cost discipline.

The Company has appointed dedicated compliance officers responsible for engagement with regulators and planning authorities, including Surrey, Lincolnshire and West Sussex County Councils, the North Sea Transition Authority, the Environment Agency and the Health and Safety Executive. As an AIM-quoted company, the Group is also subject to the rules and oversight of the AIM Market of the London Stock Exchange and the Financial Conduct Authority.

The Directors recognise that the regulatory environment continues to evolve and has become increasingly complex. In response, the Group is focused on maintaining proactive and transparent engagement with regulators and planning authorities, strengthening internal compliance processes, and making greater use of pre-application and pre-approval procedures where available. This approach is intended to reduce execution risk, improve planning outcomes and ensure the Group continues to operate to the standards expected by shareholders and regulators alike.

Principal risks and uncertainties

The Directors recognise that the Group’s activities are subject to a number of risks and uncertainties which could have a material impact on the Group’s strategy, operational performance, financial position and future prospects. The Board regularly reviews these risks and the effectiveness of mitigating actions as part of its ongoing governance and risk management processes.

Market and Price Risk

The Group’s revenues and cash flows are exposed to fluctuations in oil and gas prices, which are influenced by global supply and demand dynamics, geopolitical developments, regulatory change and broader economic conditions. The Group’s ability to realise value from production is also dependent on continued access to processing facilities and transportation infrastructure, including pipelines and road networks, which may be subject to capacity constraints, maintenance issues or changes in tariff structures.

Oil and gas sales are priced by reference to market conditions and negotiated directly with purchasers, taking into account factors such as product quality, distance to market and prevailing supply-demand balances. Adverse price movements may impact revenues, cash flows and asset valuations. To mitigate downside exposure, the Group has entered into commodity derivative arrangements in respect of a portion of its gas production.

Regulatory and Permitting Risk

The Group operates in a highly regulated environment and is subject to planning, environmental, licensing and other regulatory requirements, particularly in relation to development and drilling activities. Delays, refusals or changes to permitting requirements could adversely affect project timelines, costs and operational outcomes.

The Group has historically been successful in obtaining the necessary approvals to operate. Regulatory risk is mitigated through strict compliance with applicable regulations, proactive engagement with regulators and local communities, and the experience and expertise of the management team.

Reserves and Resources Risk

Estimates of hydrocarbon reserves and resources are inherently uncertain and are based on geological, geophysical, engineering and economic data, together with assumptions regarding production performance, operating costs and commodity prices. No assurance can be given that reserves and resources will be present in the quantities estimated, recovered at anticipated rates or developed economically.

Reserve and resource estimates may be revised as additional information becomes available from drilling, testing and production activities, or as a result of changes in market conditions. A sustained decline in oil or gas prices could render certain reserves uneconomic, potentially leading to a reclassification of reserves as resources and adversely affecting asset values.

Unless otherwise stated, reserve and resource estimates for Lidsey and Brockham are derived from the Competent Person’s Report prepared at the time of AIM admission in November 2016, and those for Saltfleetby are based on the Competent Person’s Report published in October 2023. Actual production, revenues and cash flows may differ materially from estimates, which could adversely affect the Group’s business, financial condition and prospects.

Currency Risk

The Group generates revenue from the sale of crude oil and gas, with oil sales denominated in US dollars and gas sales denominated in sterling. The majority of the Group’s operating costs and cash flows are also denominated in sterling, which limits overall foreign exchange exposure. However, movements in exchange rates may affect the sterling value of revenues and reported financial performance.

The Board and management monitor currency exposure on an ongoing basis and consider mitigation measures where appropriate, with the objective of limiting downside risk while maintaining operational flexibility.

Events after the reporting period

Subsequent to the reporting date, the Company has been progressing the refinancing and restructuring of its financing arrangements with Trafigura Group Pte Ltd (“Trafigura”), the counterparties to the Overriding Royalty Interest (“ORRI”) attached to the Saltfleetby Gas Field, and Forum Energy Services Limited in respect of the deferred consideration relating to the acquisition of Saltfleetby Energy Limited. The Company has reached agreement on the key commercial terms of the proposed restructuring and is currently working with the relevant parties and its advisers to finalise the definitive documentation required to implement these arrangements.

On 9 March 2026, the Group entered into additional gas hedging arrangements covering production from April 2026 to June 2027. These hedges secure approximately 7.745 million therms at an average weighted price of approximately 101 pence per therm and were placed in accordance with the Group’s financing arrangements and gas price risk management strategy.

Forward Strategy

Following the progress made towards the proposed refinancing and restructuring of the Company’s financing arrangements and the continued stable performance of the Saltfleetby gas field, the Group enters the coming period with an improving operational platform and a clearer strategic focus. As the Company works to finalise the restructuring process, the Board remains focused on maintaining reliable production from Saltfleetby and continuing operational optimisation across the field.

The Board’s immediate priority remains to maximise value from the Saltfleetby gas field through continued operational optimisation and selective development opportunities aimed at enhancing production efficiency and extending field life. Alongside this, the Company will continue to evaluate potential acquisition opportunities that align with its technical expertise, operational capabilities and disciplined capital allocation approach. The Board believes that domestically produced natural gas will continue to play an important role in supporting the UK’s energy security during the transition to lower-carbon energy systems.

Subject to the successful completion of the proposed refinancing and restructuring arrangements, the Board believes the Group is well positioned to focus on disciplined growth and long-term value creation. With a renewed management team and a clear strategic direction, the Company remains committed to strengthening its operational performance while contributing to the UK’s evolving energy landscape.

Approved by the Board of Directors and signed on behalf of the Board.

Carlos Fernandes, Finance Director

Zephyr Energy

Zephyr has reported that one of its U.S. subsidiary companies has been targeted in a cybersecurity incident.

The highly sophisticated incident involved the diversion of a single payment to a contractor and resulted in funds of circa £0.7 million being transferred to a third-party account. Upon discovery of the incident, the Company immediately notified the relevant law enforcement authorities and is working with the corresponding banks and consultants to attempt to recover the diverted funds.

The Company’s IT systems have been thoroughly assessed by a leading cybersecurity consultant, the incident is contained, and the Company’s operations and corporate activity are continuing as normal.  The Company’s IT consultants continue to monitor the Company’s systems.

While Zephyr uses industry standard practices in relation to its technology and payment systems, additional layers of security have been implemented as a result of this attack.

The Company’s board of directors can confirm that the Company has more than sufficient working capital to ensure that this isolated matter will not impact the Company’s ability to perform its ongoing operations.

Unfortunately these events are all too commonplace in today’s environment and the good news is that Zephyr report that this incident should not have an impact on their ability to do business and therefore there will be no disruption to operations at either the Paradox or Williston basins. With higher oil prices, largely unhedged production, and excess proceeds from recent acreage sales, I can see why this would be the case

As a result of this targeted attack, additional layers of security have been put in place and with Zephyr fully funded for its current operations shareholders should be looking forward to plenty more good news in the pipeline I hope.

Accordingly I remain upbeat about prospects for Zephyr and with my TP of 20p very much intact as is its place in the Bucket List, the next few months are looking very promising. 

Buccaneer Energy

Buccaneer has announced that its Chief Executive Officer, Paul Welch, will host a live interactive presentation on the Engage Investor Platform on Thursday 16 April at 3:30pm BST.

Buccaneer welcomes all current shareholders and interested investors to join and encourages investors to pre-submit questions. Investors can also submit questions at any time during the live presentation.

Investors can sign up to Engage Investor at no cost and follow Buccaneer Energy from their personalised investor hub.

Register for the event here: https://engageinvestor.news/BUCE_IP26 

I don’t always mention company’s upcoming presentations but having supported the company since the arrival of Paul Welch and noted the poor share price performance I think that all interested parties need to hear what the plans are for Buccaneer.

My argument that the company lacks scale remains very much intact but I do realise that it is not easy to solve that particular problem in the short term and management are clearly on the case. But with the high oil price and with the enormously successful Hunting apparatus significantly increasing production the company has a following wind, tomorrow should give the market the clues to how this will affect the future…

Original article   l   KeyFacts Energy Industry Directory: Malcy's Blog