TIDMANGS
RNS Number : 6502A
Angus Energy PLC
03 June 2021
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF THE MARKET ABUSE REGULATION (EU No. 596/2014) AS IT FORMS PART
OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT
2018.
3 June 2021
Angus Energy Plc
("Angus Energy", "Angus" or the "Company")
Saltfleetby Gas Field Finance and Operations Update
Highlights:
-- GBP12 million facility for the re-development of Saltfleetby
has been signed, the Conditions Precedents have been fulfilled and
facility is now available and being drawn
-- Angus and Saltfleetby Energy Limited have now secured all
funding required to commission the plant by Q4 2021 and achieve
First Gas by December 2021
-- By making the full GBP12 million facility available
immediately, Angus is able to bring forward plans for the side-
track well, which would be fully funded from the facility, and
increase production to the plateau rate sooner than expected.
-- With the financial, commercial and technical support of
Mercuria, Aleph and its partner Albanwise Synergy, Angus continues
its plan to re-develop the Saltfleetby Gas Field and develop Energy
Transition projects, with a particular focus on Geothermal
Energy.
Saltfleetby Drawdown and Initial Application of Funds
Angus Energy plc (AIM: ANGS) is pleased to announce that the
Conditions Precedents to drawdown have been met, the full GBP12
million facility required for the re-development of the Saltfleetby
Gas Field and the drilling of the side-track well is now fully
available.
GBP5.84 million has currently been drawn down with the balance
to be drawn over the coming weeks against invoices in line with the
Field Development Plan and the Plans for the acceleration of
production through the fast-tracking of the side-track well.
Simultaneous with drawdown, the Company has hedged (the "Hedge")
approximately 70% of the Company's and its partners' share of
future gas sales, estimated under a conservative projection, for
three years beginning in July 2022, providing Angus with downside
revenue protection, all the while allowing the Company to capture
upside in the event of higher gas prices. The average achieved
price under the Hedge, including all fees, costs and charges is 43
pence per therm.
Angus has initiated the following activities to implement its
timeline to first gas by the end of 2021:
-- Two gas compressors packages are currently being designed by
specialist fabricators in Kent. Each unit is rated at 5 MMscf/d
each with Caterpillar gas engines and Ariel reciprocating
compressor sections. The engines and compressor ends have been
identified and secured for the project. Delivery to site of the
first pre-fabricated unit will be in October.
-- A condensate stabilisation system is being designed by a Hull
based engineering group with extensive experience supporting gas
production operations in the region. Local UK fabricators have been
contacted and build slots identified to allow for equipment
manufacture to fit the project schedule. This includes associated
options for the Joules-Thompson dew pointing device and a desiccant
dehydration system.
-- Gas commercial sales meter and analyser skid incorporating
state-of-the-art Honeywell equipment is completely designed and
subsequently reviewed by the National Grid. The equipment is under
fabrication in the UK working towards delivery in mid-July.
-- Detailed design of the process facility continues with
Aberdeen based engineering house, Optimus. The current design in
progress will be iterated to include final equipment selections and
matured into the complete design package. Bulk materials will be
ordered based on the specifications developed in the detail design.
HSE and Regulatory review will be progressed.
-- Construction activities are planned over several months with
multiple local specialist contractors. On site operations will
commence in July with limited groundwork preparations on this
pre-developed site. In situ fabrication of flowlines will commence
in August and main production equipment will be connected as
individual skid packages arrive.
Further to its presentation of 24 February, and in view of the
revised timeline of the funding, the Company is now targeting
commissioning of the field during Q4 2021 and First Gas around the
year end.
Shares Issued in relation to the Loan Facility
As previously advised, the Lenders are being granted 30 million
ordinary shares over the life of the facility in lieu of a cash
facility fee, of which 15,000,000 (the "Lender Shares") will be
issued today and 5 million at each anniversary for three years
thereafter.
In addition, and in order to satisfy certain existing
outstanding professional fees, as well as commission payable in
respect of the Funding Agreement, the Company has agreed to make
certain payments in Ordinary Shares (the "Adviser Shares"). Thus
the Company is also issuing 20,000,000 ordinary shares in
negotiated settlement of a proportion of those commissions and fees
otherwise payable. The remainder of the fees will be settled in
cash and/ or shares, such final amounts being agreed and to be
updated should further share issues be agreed. This being a debt
funding, no amounts are due to the Company's Nomad or Broker. The
average price per share deemed paid in respect of the Lender and
Adviser Shares is 0.9429 pence.
Application will be made for the Lender and Adviser Shares to be
admitted to trading on AIM ("Admission") and it is expected that
Admission will become effective on or around 10 June 2021. The
Lender and Adviser Shares will rank pari passu with the existing
ordinary shares.
Following the issue of the Lender and Adviser Shares, the
Company will have 966,502,269 Ordinary Shares in issue, each share
carrying the right to one vote. The Company does not hold any
Ordinary Shares in treasury. The above figure of 966,502,269
Ordinary Shares may be used by shareholders in the Company as the
denominator for the calculations by which they will determine if
they are required to notify their interest in, or a change to their
interest in, the share capital of the Company under the Financial
Conduct Authority's Disclosure Guidance and Transparency Rues.
END.
Enquiries:
Angus Energy Plc www.angusenergy.co.uk
George Lucan Tel: +44 (0) 208 899 6380
Beaumont Cornish (Nomad) www.beaumontcornish.com
James Biddle/ Roland Cornish Tel: +44 (0) 207 628 3396
WH Ireland Limited (Broker)
Katy Mitchell/ Harry Ansell Tel: +44 (0) 113 394 6600
Flagstaff PR/IR angus@flagstaffcomms.com
Tim Thompson Tel: +44 (0) 207 129 1474
Fergus Mellon
Aleph Commodities info@alephcommodities.com
Notes
About Angus Energy plc
Angus Energy plc is a UK AIM quoted independent onshore Energy
Transition company with a complementary portfolio of clean gas
development assets, onshore geothermal projects, and legacy oil
producing fields. Angus is focused on becoming a leading onshore UK
diversified clean energy and energy infrastructure company. Angus
Energy has a 51% interest in the Saltfleetby Gas Field (PEDL005),
majority owns and operates conventional oil production fields at
Brockham (PL 235) and Lidsey (PL 241) and has a 25% interest in the
Balcombe Licence (PEDL244).
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END
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