Brockham Update – Oct 2019

  • After announcing in June 2019 that the company was in preliminary discussions with a third party regarding a sale of its 65% interest in the Brockham license, Angus Energy is no longer actively selling, although a market buyer could still offer to purchase the site and licence. Angus said it received a temporary extension of its production license PL235 from the Oil and Gas Authority (it was due to expire in Oct 2019) but they have not told us the new expiry date.
  • Angus said there was oil in the Kimmeridge shale at Brockham, but “not in sufficient quantity or under sufficient pressure to want to release itself and come up the pipe.” They said there are variations in the Kimmeridge and that it is really an unknown. Multiple wells in multiple locations would have to be drilled to understand how the rock behaves in different areas.
  • Angus confirmed they have ruled out high volume fracking. The Kimmeridge layers are shallower than 1,000m below ground, and high volume fracking is not allowed. They also told Drill Or Drop? that it is too expensive and too difficult to get community support. Angus did not comment on other fracking-like methods such as acid stimulation.
    • Our comment: if there is not enough oil in the Kimmeridge, it makes little sense to try to extract it.
  • Angus says it plans to re-start production from the conventional Portland reservoir via well BRX2. The Portland has already been exploited at Brockham and is towards the end of its life.
  • Angus will need to apply pressure management techniques (namely reinjection of waste water), to produce the Portland. They previously said: “if we can’t reinject we can’t support the pressure in the reservoir and we can’t get rid of any water that has been produced.” Angus said they were in discussions with the Environment Agency to find a way around this technical issue, but no application has been made.
    • Our comment: In November 2018, Angus was granted a new environmental permit by the EA. This permit prohibited the reinjection of waste water (from Brockham and another drill site – Lidsey) at Brockham because of the risk of pollution of groundwater. There is no groundwater monitoring at Brockham, and Angus was not able to demonstrate to the EA that they had the required procedures in place to monitor well integrity when injecting waste water underground.
    • 31 Oct update: the EA confirmed that they have not received an application from Angus Energy for reinjection, and that they have not had formal discussions with them on this matter. If Angus were to make an application, the EA would need further information from them to formally make an assessment including of any required conditions. 
  • Angus also believe there might an opportunity to access the Portland via the infamous sidetrack BRx4Z drilled without planning permission. Although they also obtained a cost estimate to plug and abandon it.
  • If Portland extraction is not viable, the entire site will be probably abandoned and restored to agriculture.
  • Angus also told the Parish Council that they might target other layers, but no other detail is available.
  • Angus tentatively agreed to form a local liaison committee with the Parish Council and members of Brocham Oil Watch. Meetings of this group would begin in November 2019.
  • On 25 Oct 2019 Angus announced that it raised a £1.5m loan facility to pay for the costs of decommissioning oil and gas wells, and that £1m of the loan has been drawn down immediately to be set aside to fund the future restoration of oil sites at Brockham in Surrey and Lidsey in West Sussex. In this announcement Angus also says that Brockham is a valuable asset it still expects to exploit, and that a decision on whether to impair or fully write down its carrying value will be made at the time the full year accounts to 30 September 2019 are prepared and reviewed by its auditors.

Link to PC/Angus meeting notes will be posted if permission given

Link to Drill or Drop Interview

2 thoughts on “Brockham Update – Oct 2019

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