23 February 2016

Purchase of new site to support North Sea Services contract

We are pleased to announce the purchase of a new site to support a contract in our North Sea Services business (ANSS).
 

ANSS van outside Great Yarmouth site

As noted in the Group's recent trading update, ANSS entered into a new contract in January 2016 to provide production waste management and onshore industrial services to a major oil & gas operator. The contract is an important development for Augean as the Group seeks to access customers and deliver under contracts related to the southern North Sea in the medium-term.  Linked to this contract, the Group now announces that ANSS has purchased certain freehold land and assets in Great Yarmouth.  This site will enable ANSS to supplement those services already provided to customers in the northern and central North Sea, which will continue to be mainly delivered from Aberdeen.
 
As previously announced, the successful move of our North Sea Services business into the provision of production waste management and onshore industrial services to major oil & gas operators represents a significant diversification into a more stable sector of this market. 
 
The new site, which has been purchased from a waste management company and already holds relevant planning and environmental permits, was purchased for £500,000, plus associated taxes and fees.

Dr Stewart Davies, Chief Executive Officer commented:
 
"The purchase of the Great Yarmouth site marks significant progress for the Group as we continue to maintain and build our position as a leading specialist waste management provider in the UK.   The entry into the southern North Sea represents further progress in our strategy of becoming a leading supplier in the stable market of production waste management and onshore industrial services to major oil & gas operators. The Group's customer base continues to expand across a diversified range of sectors, which along with the quality and length of our contracts underpins our position as we move through 2016."
 
The Group's preliminary results for the year ended 31 December 2015 are expected to be announced on 22 March 2016.

Stewart Davies, CEO,  and John Coull, from ANSS, outside the Great Yarmouth site