THE INFORMATION CONTAINED WITHIN
THIS ANNOUNCEMENT IS DEEMED BY THE COMPANY TO CONSTITUTE INSIDE
INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATION (EU)
NO. 596/2014 AS IT
FORMS PART OF UK DOMESTIC LAW PURSUANT TO THE EUROPEAN UNION
(WITHDRAWAL) ACT 2018, AS AMENDED.
UPON THE PUBLICATION OF THIS ANNOUNCEMENT VIA A
REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO
BE IN THE PUBLIC DOMAIN.
28 June
2024
Angus Energy
Plc
("Angus Energy", the
"Company" or together with its subsidiaries, the
"Group")
(AIM:ANGS)
Interim Accounts for the six
months ended 31 March 2024
·
Gas production up year on year
·
EBITDA of £6.937m
·
Refinancing of existing debt with Trafigura Group
PTE Ltd, providing financial stability
·
Focus on organic and inorganic growth
opportunities, with Brockham restart complete
Angus Energy is pleased to
announce its interim accounts for the six months ended 31 March
2024 as set out below. A copy of the Interims is available on the
Company's website www.angusenergy.co.uk
END
For further information on the
Company, please visit www.angusenergy.co.uk
or contact:
Enquiries:
Angus Energy
Plc
www.angusenergy.co.uk
Richard
Herbert
Chief Executive
Director
Via Flagstaff
Beaumont Cornish Limited
(Nomad) www.beaumontcornish.com
James Biddle / Roland
Cornish
Tel: +44 (0) 207 628 3396
SP Angel
Corporate Finance LLP
(Broker)
www.spangel.co.uk
Stuart Gledhill / Caroline Rowe / Richard Hail
Tel: +44 (0)20 3470 0470
Flagstaff PR/IR
angus@flagstaffcomms.com
Tim Thompson / Fergus Mellon /
Alison Alfrey Tel: +44 (0) 207 129 1474
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 energy infrastructure company. Angus
Energy has a 100% 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). Angus Energy operates all fields in
which it has an interest.
Disclaimers - this
Announcement includes statements that are, or may be deemed to be,
"forward-looking statements". These forward-looking statements can
be identified by the use of forward-looking terminology, including
the terms "believes", "estimates", "forecasts", "plans",
"prepares", "anticipates", "projects", "expects", "intends", "may",
"will", "seeks", "should" or, in each case, their negative or other
variations or comparable terminology, or by discussions of
strategy, plans, objectives, goals, future events or intentions.
These forward-looking statements include all matters that are not
historical facts. They appear in a number of places throughout this
Announcement and include statements regarding the Company's and the
Directors' intentions, beliefs or current expectations concerning,
amongst other things, the Company's prospects, growth and strategy.
By their nature, forward-looking statements involve risks and
uncertainties because they relate to events and depend on
circumstances that may or may not occur in the future.
Forward-looking statements are not guarantees of future
performance. The Company's actual performance, achievements and
financial condition may differ materially from those expressed or
implied by the forward-looking statements in this Announcement. In
addition, even if the Company's results of operations, performance,
achievements and financial condition are consistent with the
forward-looking statements in this Announcement, those results or
developments may not be indicative of results or developments in
subsequent periods. Any forward-looking statements that the Company
makes in this Announcement speak only as of the date of such
statement and (other than in accordance with their legal or
regulatory obligations) neither the Company, nor the Bookrunner nor
Beaumont Cornish nor any of their respective associates, directors,
officers or advisers shall be obliged to update such statements.
Comparisons of results for current and any prior periods are not
intended to express any future trends or indications of future
performance, unless expressed as such, and should only be viewed as
historical data.
Beaumont Cornish Limited, which is
authorised and regulated in the United Kingdom by the Financial
Conduct Authority, is acting as nominated adviser to the Company in
relation to the matters referred herein. Beaumont Cornish Limited
is acting exclusively for the Company and for no one else in
relation to the matters described in this announcement and is not
advising any other person and accordingly will not be responsible
to anyone other than the Company for providing the protections
afforded to clients of Beaumont Cornish Limited, or for providing
advice in relation to the contents of this announcement or any
matter referred to in it.
Chairman's Statement
Dear Shareholders,
I am pleased to share with you the
interim results for the six months ended 31 March
2024. Production was up year on year with strong EBITDA being
reported. Our growth strategy has also kick started with the
refinancing of our existing debt with Trafigura Group PTE Ltd ("Trafigura") and the reinstatement
of production at Brockham.
All operations were conducted
without any harm to people or the environment. During the period we
successfully restructured the Company's debt with the closing of
the facility provided by Trafigura. The new debt facility provides
the Company with a level of financial stability which allows us to
plan for the future and to maximise the value of our assets for the
benefit of all our shareholders. Trafigura has demonstrated a
strong commitment to its new relationship with Angus and we intend
to work together to evaluate the potential for gas storage at the
Saltfleetby site, increasing gas production, developing the oil
assets and other potential acquisitions in the future.
Angus is committed to creating
value for shareholders through organic and inorganic growth. We
have already restarted production at Brockham which has exceeded
expectations. We are now focussing on increasing production at
Saltfleetby through activating additional wells and installing a
booster compressor. Further opportunities for crude production are
being developed. Angus is proceeding with a strategy of
acquisitions that will increase production, reduce unit costs and
decrease overall risk. We have identified three geographic regions
of interest and are actively pursuing acquisition and commercial
tie up opportunities. We hope to be announcing details during the
next six months.
Revenue from oil and gas
production during the period was £12.131m on production of a gross
24,274 bbls of gas condensate and 14.161 mm therms of natural gas.
This was the result of production from the Saltfleetby Gas Field.
Average sales prices achieved during the period were £35.45/bbls
for gas condensate and £0.80/therm for natural gas.
The Group recorded a profit of
£5.775m, which included an operating profit of £2.151m. EBITDA for
the period was £6.937m. The derivative profit is based on future
production and calculated using forward gas prices as at 31 March
2024. The derivative will be realised to a profit or loss when the
payments under the derivative instruments become due.
As mentioned above, another
milestone was achieved post period-end, with the restarting of
production at Angus's Brockham Oil Field in Surrey. The workover of
the Brockham 2Y well to reinstate production from the field was
successfully concluded in late May. A new pump was installed in the
well and repairs and upgrades made to the surface equipment. After
a period of flow to clean-up the well, it is back online producing
c. 120 bbls/day of total fluid, of which 40% is currently
oil.
Operational Highlights
Saltfleetby
Gas volumes produced and sold from
the Saltfleetby Field equalled 14.161 mm therms in aggregate for
the period as against hedged volumes of 9 mm therms for the period.
Operational efficiency was 90% for the period. Gas condensate
(liquid) production was 24,274 bbls for the period.
In October 2023 Angus announced
the publication of an updated independent Competent Persons Report
("CPR") for its Saltfleetby Gas Field ("SGF") conducted by
Oilfields International Limited. The summary of the results
which includes resources and reserves for both sales gas and
associated liquids is set out below:
|
Saltfleetby Field Net Reserves and Contingent Resource as at
August 1, 2023
|
1P
|
2P
|
2C
|
|
Sales Gas (Bcf)
|
22
|
25
|
17
|
|
Sales Liquids (Mstb)
|
332
|
415
|
238
|
|
Total (Mboe)
|
4,194
|
4,760
|
3,204
|
|
*Energy equivalent factor 5,800
cubic feet of gas per boe
|
The new CPR has taken account of
production performance from three wells currently on production and
the addition of two further development wells in the Main
Westphalian reservoir, SF9 and SF10, which are scheduled to enter
production in January 2025 and January
2026 respectively.
The CPR also gives the net present
value of the cash flows from SGF, including the impact from the
revised capex from additional drilling, projected impact of the
Energy Profits Levy, the senior loan facility debt service costs,
the associated royalties and the mandatory
hedging. Oilfield International Limited has used a
discount rate of 10%.
We highlight below the NCF and
NPV10, discounted to August 1st, 2023: Net Attributable to the
Company:
|
|
Net Cash Flow (NCF)
Attributable to the Company
|
NPV10 Attributable to the
Company
|
|
Scenario
|
1P
|
2P
|
1P
|
2P
|
|
Pre-Tax
|
£125.4m
|
£153.5m
|
£86.9m
|
£104.1m
|
|
Post-Tax
|
£78.9m
|
£90.6m
|
£57.1m
|
£64.3m
|
MOD: money of the day
The full CPR is available for
download in the "Presentations" section of the Company's website
(www.angusenergy.co.uk/media/presentations).
During the period, the SF7
permanent flowline construction was completed, and the flowline
tied into the main process plant. The Company also completed a
bottom-up assessment of the geological interpretation of the
Saltfleetby field. This included:
· Reprocessing and reinterpreting the 3D seismic across the
field generating a revised top structure map
· New
stratigraphic correlation of the reservoir units and other key
horizons
· Revised petrophysics of key well logs
· A
probabilistic evaluation of the volumetrics
This exercise has helped to
constrain the structure of the reservoir and will be critical in
the planning of future development wells. Additionally, the work
has indicated the potential for underdeveloped (or undeveloped)
horizons within the reservoir. It has also reconfirmed the
previously identified production acceleration potential within the
main producing reservoir unit.
Detailed Design has progressed
with the Booster Compressor. Selection of the compressor and
engine, for the pressures and flowrates established by the
reservoir modelling and CPR report, have now been
finalised.
Potential Future Drilling and Gas Storage
A planning application was
submitted post-period end to the local planning officer. The
planning application will allow for drilling, completion and
testing of four new wells to be drilled from either the A or B site
giving us flexibility in future development.
Upon completion of the seismic
remapping exercise described above, Angus will progress with the
development of a reservoir model (static and dynamic) which is
anticipated to be completed Q3 2024 and will be utilised to fine
tune the detailed design and anticipated results of future drilling
targets and gas storage potential.
Brockham
The workover of the Brockham 2Y
well to reinstate production from the field was successfully
concluded post period end in late May 2024. A new pump was
installed in the well and repairs and upgrades made to the surface
equipment. After a period of flow to clean-up the well, it is back
online producing c. 120 bbls/day of total fluid, of which 40% is
currently oil. The well will be monitored over the coming weeks to
determine future production potential. All produced water is
reinjected at the site into the reservoir for pressure support.
Further updates on oil production from Brockham in which Angus has
an 80% interest and other potential developments will be shared
over the coming months.
Balcombe
Despite the West Sussex County
Council Planning Officer's decision to recommend approval of the
Company's application for a one year extended well test at the
Company's oilfield site at Balcombe the West Sussex County
Council's Planning Committee rejected the Company's planning
application for an Extended Well Test. Angus strongly disagrees with their opinion and an
application to appeal was submitted in October 2021.
On 14 February 2023, our appeal
against the decision by West Sussex County Council to refuse
permission for an extended well test at the Balcombe oil site was
upheld. The Planning Inspectorates decision was subsequently
challenged in the High Court by a local residence group. In October
2023 the High Court upheld the Planning Inspectorates decision to
grant the Company the right to test the existing well, which has
now also been successfully appealed. The Company now waits to hear
whether their appeal will be successful and should know by January
2025.
Lidsey
The Lidsey Field has been shut in
during the period, waiting on the resumption of Brockham production
in order to evaluate options for combined operations.
Financial Highlights
On 30 October 2023, and previously
announced on 28 September 2023, Kemexon Ltd agreed to convert its
£3m Junior Bridge Facility, together with interest and fees, into
equity in the Company at a price of 0.66 pence per share.
Accordingly, the Company issued 516,033,308 ordinary shares at 0.66
pence per share.
On 22 February 2024, the Company
announced that terms had been agreed with a subsidiary of Trafigura
Group PTE Ltd ("Trafigura ") for a refinancing of its existing
debt. The Company signed definitive loan documentation which
allowed it to draw down in full on the £20 million loan facility
(the "Facility") with Trafigura. The existing senior debt of £4.56
million was transferred to Trafigura and the proceeds of the
Facility were applied to repay the second bridge facility of £6
million, and £1.75 million of Forum Energy's deferred consideration
from the sale of Saltfleetby Energy Limited's 49% interest in the
Saltfleetby Field to Angus in 2022. The balance of funds from the
Facility would be used to pay legacy creditors and invest in wells
and equipment to increase gas production from Saltfleetby and
restart oil production from the Brockham Field in Southern England.
The existing security package encompassing first fixed and floating
charges over all the Group's leases, licences and equipment has
been novated to Trafigura as has the Gas Sales Agreement with Shell
Trading Europe Limited. The existing hedge contract was replaced
with a gas offtake, with embedded price protection.
On 6 March 2024, the Company
issued 25,000,000 Ordinary Shares at 0.4 pence per share in
relation to a £750,000 fee for structuring and assistance in
securing the Trafigura £20 million Loan Facility. The total number
of fee shares is 187,500,000. The balance was issued on 19 March
2024, after receiving additional authorities at the General Meeting
on 14th March 2024.
As at 31 March 2024 the Group had
cash of £5.438m.
Outlook
With the successful restructuring
of the Company's debt and stable production at Saltfleetby the
management team can now turn attention to both organic and
inorganic growth opportunities and we look forward to updating
shareholders as our plans progress.
With kind regards,
Krzysztof
Zielicki
Non- Executive Chairman
28 June 2024
ANGUS ENERGY PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
For the period ended 31 March 2024
|
|
|
|
|
|
|
|
|
Note
|
|
Six months
31 March
2024
Unaudited
|
|
Six
months
31
March
2023
Unaudited
|
|
|
|
|
£'000
|
|
£'000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
4
|
|
12,131
|
|
16,466
|
|
Cost of sales
|
|
|
(3,109)
|
|
(2,356)
|
|
Depletion cost
|
|
|
(4,786)
|
|
(5,162)
|
|
Gross profit
|
|
|
4,236
|
|
8,948
|
|
|
|
|
|
|
|
|
Administrative expenses
|
|
|
(2,005)
|
|
(1,499)
|
|
Share based payment
charge
|
|
|
(80)
|
|
(963)
|
|
Operating profit
|
|
|
2,151
|
|
6,486
|
|
|
|
|
|
|
|
|
Derivative financial instrument
gain
|
11
|
|
8,981
|
|
121,222
|
|
Realised derivative
costs
|
11
|
|
(3,442)
|
|
(11,554)
|
|
Finance cost
|
|
|
(1,915)
|
|
(856)
|
|
Profit on ordinary activities before
taxation
|
|
|
5,775
|
|
115,298
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
-
|
|
-
|
|
Profit for the period attributable to the
equity holder of the Company
|
|
|
5,775
|
|
115,298
|
|
|
|
|
|
|
Profit per share (EPS):
|
|
|
£
|
|
£
|
|
Basic and diluted (whole £'s)
|
12
|
|
0.0014
|
|
0.0315
|
ANGUS ENERGY PLC
CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
At 31 March 2024
|
|
|
|
|
|
|
|
|
|
|
|
|
As at
31 March
|
|
As
at
31
March
|
|
As
at
30
September
|
|
|
|
|
2024
Unaudited
|
|
2023
Unaudited
|
|
2023
Audited
|
|
|
Note
|
|
£'000
|
|
£'000
|
|
£'000
|
|
Non-current assets
|
|
|
|
|
|
|
|
|
Property, plant and
equipment
|
5
|
|
12
|
|
20
|
|
17
|
|
Exploration and evaluation
assets
|
6
|
|
5,647
|
|
5,619
|
|
5,628
|
|
Oil and gas production
assets
|
7
|
|
76,489
|
|
85,656
|
|
80,248
|
|
Lease assets
|
|
|
-
|
|
31
|
|
25
|
|
|
|
|
82,148
|
|
91,326
|
|
85,918
|
|
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
Trade and other
receivables
|
8
|
|
3,941
|
|
3,266
|
|
2,976
|
|
AFS financial
investments
|
|
|
9
|
|
13
|
|
11
|
|
Lease assets
|
|
|
10
|
|
33
|
|
1
|
|
Cash and cash
equivalent
|
|
|
5,438
|
|
3,171
|
|
2,172
|
|
|
|
|
9,398
|
|
6,483
|
|
5,160
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
|
91,546
|
|
97,809
|
|
91,078
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
Share capital
|
|
|
8,789
|
|
6,868
|
|
7,254
|
|
Share premium
|
|
|
48,376
|
|
46,598
|
|
45,500
|
|
Merger reserve
|
|
|
(200)
|
|
(200)
|
|
(200)
|
|
Loan Note reserve
|
|
|
-
|
|
106
|
|
-
|
|
Accumulated loss
|
|
|
(9,440)
|
|
(22,048)
|
|
(15,295)
|
|
Total Equity
|
|
|
47,525
|
|
31,324
|
|
37,259
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
Trade and other
payables
|
9
|
|
4,708
|
|
15,151
|
|
10,270
|
|
Loan payable
|
10
|
|
1,250
|
|
4,200
|
|
13,829
|
|
Derivative liability
|
11
|
|
10,146
|
|
20,319
|
|
12,827
|
|
|
|
|
16,104
|
|
39,670
|
|
36,926
|
|
|
|
|
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
|
|
|
|
Provisions
|
14
|
|
4,970
|
|
4,369
|
|
4,970
|
|
Trade and other
payables
|
9
|
|
1,610
|
|
57
|
|
23
|
|
Loan payable
|
10
|
|
18,750
|
|
5,250
|
|
3,013
|
|
Derivative Liability
|
11
|
|
2,587
|
|
17,139
|
|
8,887
|
|
Total non-current liabilities
|
|
|
27,917
|
|
26,815
|
|
16,893
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
44,021
|
|
66,485
|
|
53,819
|
|
Total Equity and Liabilities
|
|
|
91,546
|
|
97,809
|
|
91,078
|
|
|
|
|
|
|
|
|
|
ANGUS ENERGY PLC
CONSOLIDATED STATEMENT OF CASH FLOWS
For the period ended 31 March 2024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months 31
March
|
|
Six
months 31 March
|
|
|
|
|
2024
Unaudited
|
|
2023
Unaudited
|
|
|
|
|
£'000
|
|
£'000
|
|
|
|
|
|
|
|
|
Cash flow from operating activities
|
|
|
|
|
|
|
Profit before taxation
|
|
|
5,775
|
|
115,298
|
|
Adjustment for:
|
|
|
|
|
|
|
Unrealised derivative financial
instrument (gain)/loss
|
|
|
(8,981)
|
|
(122,936)
|
|
Interest payable
|
|
|
-
|
|
394
|
|
Share based payment
charge
|
|
|
80
|
|
962
|
|
Depletion charges
|
|
|
4,786
|
|
5,162
|
|
Depreciation and amortisation
charges
|
|
|
8
|
|
6
|
|
Loss on AFS investments
|
|
|
3
|
|
-
|
|
Write-off of Inventory
|
|
|
-
|
|
4
|
|
Revaluation of
Investment
|
|
|
-
|
|
7
|
|
Lease amortisation
charges
|
|
|
16
|
|
22
|
|
Operating cash flows before
movements in working capital
|
|
|
1,687
|
|
(1,081)
|
|
Change in trade and other
receivables
|
|
|
(965)
|
|
841
|
|
Change in trade and other
payables
|
|
|
(1,622)
|
|
3,526
|
|
Net cash (used) / generated
in operating activities
|
|
|
(900)
|
|
3,286
|
|
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
Payment of deferred
consideration
|
|
|
(2,358)
|
|
-
|
|
Changes in trade and other
payable
|
|
|
-
|
|
(196)
|
|
Acquisition of exploration and
evaluation assets
|
|
|
(19)
|
|
(47)
|
|
Acquisition of oil and gas
production assets
|
|
|
(1,027)
|
|
(10,025)
|
|
Net cash used in investing
activities
|
|
|
(3,404)
|
|
(10,268)
|
|
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
Loan facility repayment
|
|
|
(16,841)
|
|
(2,100)
|
|
Proceeds from loan
drawdown
|
|
|
20,000
|
|
3,004
|
|
Lease principal
repayment
|
|
|
-
|
|
(18)
|
|
Net proceeds from issue of share
capital
|
|
|
4,411
|
|
8,520
|
|
Net cash generated from
financing activities
|
|
|
7,570
|
|
9,406
|
|
|
|
|
|
|
|
|
Net increase in cash &
cash equivalents
|
|
|
3,266
|
|
2,424
|
|
Cash and cash equivalent at
beginning of year
|
|
|
2,172
|
|
747
|
|
Cash and cash equivalent at
end of period
|
|
|
5,438
|
|
3,171
|
NOTES TO THE
FINANCIAL INFORMATION
1.
GENERAL INFORMATION AND PRINCIPAL
ACTIVITIES
Angus Energy Plc (the "Company")
was incorporated in United Kingdom as a limited company with
company number 09616076. The registered office of the Company
is Building 3, Chiswick Park, 566 Chiswick High Road, London, W4
5YA, UK.
This financial information is for
the Company and its subsidiaries undertakings (together, the
"Group").
The principal activities of the
entities of the Group are as follows:
|
|
|
Country
of
|
|
|
|
Name of Company
|
Incorporation
|
Principal Activities
|
|
|
|
|
|
|
i)
|
Angus Energy Holdings UK
Limited
|
United
Kingdom
|
Investment holding
company
|
|
ii)
|
Angus Energy Weald Basin No. 1
Limited
|
United
Kingdom
|
Investment holding
company
|
|
|
|
|
|
|
iii)
|
Angus Energy Weald Basin No. 2
Limited
|
United
Kingdom
|
Investment holding
company
|
|
|
|
|
|
|
iv)
|
Angus Energy Weald Basin No. 3
Limited
|
United
Kingdom
|
Oil & Gas extraction for
distribution to third parties
|
|
|
|
|
|
|
v)
|
Saltfleetby Energy
Limited
|
United
Kingdom
|
Natural Gas Extraction
|
The principal place of business of
the Group is in United Kingdom.
The interim consolidated financial
information is presented in the nearest thousands of Pound Sterling
(£'000), which is the presentation currency of the group. The
functional currency of each of the individual entity is the local
currency of each individual entity.
2.
BASIS
OF PREPARATION
The interim consolidated financial
information for the six months ended 31 March 2024 and 31 March
2023 have been prepared in accordance with IAS 34, Interim
Financial Reporting which are unaudited and do not constitute a set
of statutory financial statements.
The principal accounting policies
used in preparing the interim results are the same as those applied
in the Group's financial statements as at and for the year ended 30
September 2023, which have been prepared in accordance with
International Accounting Standards in conformity with the
requirements of the Companies Act 2006. The auditors' report on
those accounts was unqualified and did not draw attention to any
matters by way of emphasis.
A copy of the audited consolidated
financial statements for the year ended 30 September 2023 is
available on the Company's website.
The interim report for the six
months ended 31 March 2024 was approved by the Directors on 28 June
2024.
Going Concern
The Group recorded a profit of
£5.775m (2023: £115.298m), which included an operating profit of
£2.151m (2023: £6,486m). EBITDA for the period was £6.937m (2023:
£10.893m). The Group recorded net cash outflows from operating
activities of £0.900 million (2023: inflow of £3.286 million). The
Group meets its day to day working capital requirements through
revenue from oil and gas sales and existing cash reserves. As at 31
March 2024, the Group had £5.438m (2023: £3.171m) of available
cash.
The Directors have assessed the
Group's working capital forecasts for a minimum of 12 months from
the date of the approval of these financial statements. In
undertaking this assessment, the Directors have reviewed the
underlying business risks, and the potential implications these
risks would have on the Group's liquidity and its business model
over the assessment period. This assessment included a detailed
cash flow analysis prepared by the management, and they also
considered several reasonably plausible downside scenarios. The
scenarios included potential delays to expected future revenues. In
making their overall assessment the Directors took into account the
advanced stage of the development of the Saltfleetby gas field and
the impact of the derivative instrument if there were delays in gas
production. As outlined in note 11, the Group has committed to
future cash flows as a result of the derivatives in place which are
due even if gas production is delayed.
Forecast cashflows place reliance
on there not being a suspension of gas production for an unforeseen
significant period. Current production levels are in excess
of derivative requirements. There are no present operational
concerns and whilst there are mitigating steps that could be taken,
the contracted derivative will need to be settled at a fixed point
in time. In the event of any significant delay this would be
subject to further negotiation with the derivative holder or
further funding may be required. The Directors have therefore
identified a material uncertainty which may cast doubt over the
Group's ability to continue as a going concern.
Based on the current management's
plan, management considered that the working capital from the
expected revenue generation are sufficient for the expenditure to
date as well as the planned forecast expenditure for the
forthcoming twelve months from the date of the approval of this
financial statement. As a result of that review the Directors
consider that it is appropriate to adopt the going concern basis
preparation, notwithstanding the material uncertainty as outlined
above. The Directors have assessed the company's ability to
continue as a going concern and have reasonable expectation that
the company has adequate resources to continue operations for a
period of at least 12 months from the date of approval of these
financial statements.
These financial statements do not
include any adjustment that may result from any significant changes
in the assumption used.
3.
CRITICAL ACCOUNTING ESTIMATES AND SOURCES OF ESTIMATION
UNCERTAINTY
In applying the accounting
policies, the directors may at times require to make critical
accounting judgements and estimates about the carrying amount of
assets and liabilities. These estimates and assumptions, when made,
are based on historical experience and other factors that the
directors consider are relevant.
The key estimates and assumptions
concerning the future and other key sources of estimation
uncertainty at the end of the financial year, that have significant
risk of causing a material adjustment to the carrying amounts of
assets and liabilities within the next financial year are reviewed
are as stated below.
Key accounting judgements
(a) Impairment of
non-current asset
The group's non-current assets
represent its most significant assets, comprising of oil production
assets, exploration and evaluation (E&E) assets on its onshore
site.
Management is required to assess
exploration and evaluation (E&E) assets for indicators of
impairment and has considered the economic value of individual
E&E assets. The carrying amount of the E&E asset are
subject to a separate review for indicators of impairment, by
reference of the impairment indicators set out in IFRS 6, which is
inherently judgemental.
Processing operations are large,
scarce assets requiring significant technical and financial
resources to operate. Their value may be sensitive to a range of
characteristics unique to each asset and key sources of estimation
uncertainty include proved reserve estimates, future cash flow
expected to arise from the cash-generating unit and a suitable
discount rate.
In performing impairment reviews,
the Group assesses the recoverable amount of its operating assets
principally with reference to the Group's independent competent
person's report, estimates of future oil prices, operating costs,
capital expenditure necessary to extract those reserves and the
discount rate to be applied to such revenues and costs for the
purpose of deriving a recoverable value.
As detailed in note 6 and 7, the
carrying value amount of the Group's E&E assets and Oil
production assets at 31 March 2024 were approximately £5.647m and
£76.489m respectively. No impairments were made during the interim
period.
4.
OPERATING
SEGMENTS
1.
Operating segments are prepared in a manner
consistent with the internal reporting provided to the management
as its chief operating decision maker in order to allocate
resources to segments and to assess their
performance.
2.
Currently, the Group's principal
revenue is derived from the sale of natural gas and condensate oil.
All revenue arose from continuing operations within the United
Kingdom. Therefore, management considers no detail of operating and
geographical segments information is to be reported. Nonetheless,
the Group's revenue can be classified into the following
streams:
|
|
31 March
2024
|
|
31
March
2023
|
|
|
£'000
|
|
£'000
|
|
|
|
|
|
|
Sale of gas condensate
|
849
|
|
735
|
|
Sales of natural gas
|
11,282
|
|
15,731
|
|
Total Revenue
|
12,131
|
|
16,466
|
|
|
|
|
|
|
|
|
|
|
All the non-current assets of the
Group are located in the United Kingdom. All revenue arising
from the sale of natural gas is derived from sales to Shell plc and
represents over 93% of the Company's revenue.
5.
PROPERTY, PLANT AND Equipment
During the period, the Group did
not incur any additions to property, plant and equipment (2023:
£nil). The depreciation charge for the period on the Group's
property, plant and equipment was £4,819 (2023: £6,208).
6.
EXPLORATion ANd evALUaTion ASSETS
|
|
Total
|
|
|
£'000
|
|
Cost or valuation
|
|
|
At 31 March 2023
|
5,619
|
|
Additions
|
5
|
|
Increase in abandonment
provision
|
4
|
|
|
-------------------------------------
|
|
At 30 September 2023
|
5,628
|
|
Additions
|
19
|
|
|
-------------------------------------
|
|
At 31 March 2024
|
5,647
|
|
|
-------------------------------------
|
|
Amortisation
|
|
|
At 30 September 2023
|
-
|
|
Charge for the period
|
-
|
|
|
-------------------------------------
|
|
At 31 March 2024
|
-
|
|
Net book value
|
------------------------
|
|
At 30 September 2023
|
5,628
|
|
|
==============================
|
|
At 31 March 2023
|
5,619
|
|
|
==============================
|
|
At 31 March 2024
|
5,647
|
|
|
==============================
|
|
|
|
|
|
|
7.
OIL AND GAS PRODUCTION ASSETS
|
|
Total
|
|
|
£'000
|
|
Cost or valuation
|
|
|
At 30 September 2022
|
82,288
|
|
Additions
|
10,025
|
|
|
-------------------------------------
|
|
At 31 March 2023
|
92,313
|
|
Additions
|
1,042
|
|
Increase in abandonment
provision
|
597
|
|
|
-------------------------------------
|
|
At 30 September 2023
|
93,952
|
|
Additions
|
1,027
|
|
|
-------------------------------------
|
|
At 31 March 2024
|
94,979
|
|
|
-------------------------------------
|
|
|
|
|
Depreciation and impairment
|
|
|
At 30 September 2022
|
1,496
|
|
Charge for the period
|
5,161
|
|
|
-------------------------------------
|
|
At 31 March 2023
|
6,657
|
|
Charge for the period
|
3,330
|
|
Impairment for the
period
|
3,717
|
|
|
-------------------------------------
|
|
At 30 September 2023
|
13,704
|
|
Charge for the period
|
4,786
|
|
|
|
-------------------------------------
|
|
At 31 March 2024
|
18,490
|
|
|
-------------------------------------
|
|
Net book value
|
|
|
At 30 September 2023
|
80,248
|
|
|
==============================
|
|
At 31 March 2023
|
85,656
|
|
|
==============================
|
|
At 31 March 2024
|
76,489
|
|
|
==============================
|
|
|
|
|
|
|
|
|
|
|
|
| |
As of 31 March 2024, the Group
retained 100% interest in Saltfleetby Field, 80% interest in Lidsey
field and 80% in Brockham field and is still the operator of all
the fields.
8.
TRADE AND OTHER RECEIVABLES
|
|
31 March
2024
|
|
31
March
2023
|
|
30
September 2023
|
|
|
£'000
|
|
£'000
|
|
£'000
|
|
Current
|
|
|
|
|
|
|
Accrued
sales income
|
1,537
|
|
2,065
|
|
2,121
|
|
VAT
recoverable
|
446
|
|
477
|
|
196
|
|
Amount
due from farmees
|
-
|
|
611
|
|
195
|
|
Rent
deposit
|
130
|
|
6
|
|
130
|
|
Other
receivables
|
1,828
|
|
107
|
|
334
|
|
|
-------------------------------
|
|
-----------------------------
|
|
-----------------------------
|
|
|
3,941
|
|
3,266
|
|
2,976
|
|
|
-------------------------------
|
|
-----------------------------
|
|
-----------------------------
|
|
|
|
|
|
|
|
The carrying amount of trade and
other receivables approximates to their fair value.
9.
TRADE AND OTHER PAYABLES
|
|
31 March
2024
|
|
31
March
2023
|
|
30
September
2023
|
|
|
£'000
|
|
£'000
|
|
£'000
|
|
Non-Current
|
|
|
|
|
|
|
Deferred
consideration on Saltfleetby
|
|
|
|
|
|
|
Energy
Limited acquisition
|
1,587
|
|
-
|
|
-
|
|
Lease liability
|
23
|
|
57
|
|
23
|
|
|
-------------------------------
|
|
-----------------------------
|
|
-----------------------------
|
|
|
1,610
|
|
57
|
|
23
|
|
Current
|
|
|
|
|
|
|
Trade
payables
|
2,604
|
|
4,487
|
|
4,249
|
|
Convertible loan notes
|
-
|
|
1,347
|
|
-
|
|
Bridge
Loan
|
-
|
|
3,004
|
|
-
|
|
Other
taxation
|
-
|
|
251
|
|
-
|
|
Deferred
consideration on Saltfleetby
Energy Limited
acquisition
|
1,300
|
|
5,538
|
|
5,244
|
|
Accruals
|
413
|
|
137
|
|
176
|
|
Other
payables
|
373
|
|
3
|
|
269
|
|
Interest
payable - loan
|
-
|
|
366
|
|
315
|
|
Lease
Liability
|
18
|
|
18
|
|
17
|
|
|
-------------------------------
|
|
-----------------------------
|
|
-----------------------------
|
|
|
4,708
|
|
15,151
|
|
10,270
|
|
|
-------------------------------
|
|
-----------------------------
|
|
-----------------------------
|
10.
LOAN
PAYABLE
On 22 February 2024, the Company
announced that terms had been agreed with a subsidiary of Trafigura
Group PTE Ltd ("Trafigura") for a refinancing of its existing debt.
The Company signed definitive loan documentation which allows it to
draw down in full on the £20 million loan facility (the "Facility")
with Trafigura. The existing senior debt of £4.56 million was
transferred to Trafigura and the proceeds of the Facility were
applied to repay the bridge facility of £6 million, and £1.75
million of Forum Energy's deferred consideration from the sale of
Saltfleetby Energy Limited's 49% interest in the Saltfleetby Field
to Angus in 2022.
The balance of funds from the
Facility would be used to pay legacy creditors and invest in wells
and equipment to increase gas production from Saltfleetby and
restart oil production from the Brockham Field in Southern England.
The existing security package encompassing first fixed and floating
charges over all the Group's leases, licences and equipment has
been novated to Trafigura as has the Gas Sales Agreement with Shell
Trading Europe Limited. The existing hedge contract was replaced
with a gas offtake, with embedded price protection.
|
|
|
|
|
31 March
2024
|
31 March
2023
|
30
September
2023
|
|
Repayment date schedule is as
follows:
|
|
|
|
£'000
|
£'000
|
£'000
|
|
|
|
|
|
|
|
|
|
Current
|
|
|
|
|
|
|
|
1st
year
|
|
|
|
1,250
|
4,200
|
13,829
|
|
Non-Current
|
|
|
|
|
|
|
|
2nd
year
|
|
|
|
5,000
|
5,250
|
3,013
|
|
3rd
year
|
|
|
|
5,000
|
-
|
-
|
|
4th
year
|
|
|
|
5,000
|
-
|
-
|
|
5th
year
|
|
|
|
3,750
|
-
|
-
|
|
|
|
|
|
|
|
|
|
Total Facility Loan
|
|
|
|
£20,000
|
£9,450
|
£16,842
|
11.
DERIVATIVES LIABILITY
On 01 June 2021, Angus Energy
Weald Basin no. 3 Limited (AWB3) entered into a derivative
agreement with Mercuria Energy Trading SA (METS) under a Swap
contract as part of the condition of the £12 million Loan Facility.
The derivative instrument was used to mitigate price risk on the
expected future cash flow from the production of Saltfleetby Gas
Field. Under the Swap contract, AWB3 will pay METS the floating
price while METS will pay AWB3 the fixed price on the sale of gas
from the field.
As part of the Trafigura loan (see
note 10), the existing Mercuria hedges have been novated and
restruck with Trafigura. The Company also struck 7.3 million therms
of new hedges to price protect the Mercuria hedges crystallized in
July 2023.
|
Further details of the contract as
at 31 March 2024 are as below:
|
|
|
Period of Gas
Production
|
Quantity in Therms
|
Fixed
price in pence per Therms
|
|
|
|
|
|
|
|
|
1-Apr-24
|
30-Jun-24
|
4,500,000
|
29.60
|
|
|
1-Jul-24
|
30-Sep-24
|
3,750,000
|
29.60
|
|
|
1-Jul-24
|
30-Sep-24
|
1,840,000
|
56.00*
|
|
|
1-Oct-24
|
31-Mar-25
|
7,500,000
|
39.00
|
|
|
1-Oct-24
|
31-Dec-24
|
1,840,000
|
66.25*
|
|
|
1-Jan-25
|
31-Mar-25
|
1,800,000
|
72.90*
|
|
|
1-Apr-25
|
31-Jun-25
|
3,750,000
|
29.25
|
|
|
1-Apr-25
|
30-Jun-25
|
1,820,000
|
63.40*
|
|
|
|
|
|
|
|
|
|
|
26,800,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*new hedges to price protect the
Mercuria hedges crystallized in July 2023
|
Crystallised hedges at fixed price
as below:
|
|
|
Period of Gas
Production
|
Quantity in Therms
|
Fixed
price in pence per Therms
|
|
|
|
|
|
|
|
|
1-Jul-24
|
30-Sep-24
|
1,840,000
|
122.60
|
|
|
1-Oct-24
|
31-Mar-25
|
3,640,000
|
137.00
|
|
|
1-Apr-25
|
31-Jun-25
|
1,820,000
|
107.00
|
|
|
|
|
|
|
|
|
|
|
7,300,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of the reporting date, the
expected net cash flow on the sale of natural gas amounted to
£14.901m (2023: £18.142m) resulting in a derivative liability of
£12.733m (2023: £37.458m) of which the Group has now recorded 100%
share on its new working interest due to the acquisition of
Saltfleetby Energy Limited.
|
|
|
|
|
|
Cash Flow of Derivative Instruments
|
31 March
2025
|
30 June
2025
|
Total
|
|
|
£'000
|
£'000
|
£'000
|
|
|
|
|
|
|
Cash Inflow
|
12,742
|
2,159
|
14,901
|
|
Cash Outflow
|
(22,888)
|
(4,746)
|
(27,634)
|
|
|
|
|
|
|
Net Liability on Swap
Contract
|
(10,146)
|
(2,587)
|
(12,733)
|
Specific valuation technique used
to value the financial instruments includes fair value measurement
derived from inputs other than quoted prices included within Level
1 of fair value hierarchy valuation, that are observable for the
instrument either directly or indirectly.
The carrying value of the
financial instrument approximates their fair value and was valued
using Level 2 fair value hierarchy valuation. The fair value has
been determined with reference to commodity yield curves, as
adjusted for liquidity and trading volumes as at the reporting date
supplied by the Group's derivative partner, Trafigura. Management
considered that the value provided by Trafigura best represented
the fair value of these arrangements as the forward pricing curves
did not take into account other market conditions.
The nature of these arrangements
in the present environment is such that material fluctuations in
the value of the derivatives are occurring on a daily basis.
Wholesale gas prices have decreased substantially since March 2023,
but remain highly volatile.
The adjusted loss on these hedging
contracts as of 31 March 2024 represents the forecasted spot-price
value of the gas to be extracted against the value fixed provided
to the Group. Under projected gas production volumes, these
arrangements will fix the amount payable to the group for the
contracted volumes, with any excess volume being able to be sold at
the available spot price.
The valuation of financial
instruments as of the period resulted in a gain of £8.981m (2023:
£121.222m) as a result of a decrease in forward pricing as at 31
March 2024. An amount of £3.442m was crystalised in the
period and paid to Mercuria Energy Trading and Trafigura
respectively.
In the event that the Group does
not meet its production timetable, the swaps will crystallise as a
liability at the dates at the proposed periods of gas production in
the swap agreements.
12. EARNINGS
PER SHARE
Basic EPS amounts are calculated
by dividing the profit for the year attributable to equity holders
of the Group by the weighted average number of ordinary shares
outstanding during the period.
Diluted EPS amounts are calculated
by dividing the profit for the year attributable to equity holders
of the Group by the weighted average number of ordinary shares
outstanding during the period plus the weighted average number of
ordinary shares that would be issued on conversion of all the
dilutive potential ordinary shares into ordinary shares.
The following reflects the income
and share data used in the basic and diluted EPS
computations:
|
|
31 March
2024
|
|
31
March
2023
|
|
|
|
|
|
|
Net profit attributable to equity
holders of the Group
|
5,774,077
|
|
115,297,958
|
|
Weighted average number of
ordinary shares
|
4,018,011,729
|
|
3,655,793,215
|
|
Basic and diluted profit per share
(whole £'s)
|
0.0014
|
|
0.0315
|
|
|
|
|
|
The diluted profit per share is
the same as the basic profit per share as there were no dilutive
potential ordinary shares outstanding at the end of the reporting
period.
13.
SEASONALITY OF GROUP BUSINESS
There are
no seasonal factors that materially affect the operations of any
company in the Group.
14.
PROVISIONS FOR OTHER LIABILITIES AND CHARGES
|
|
31 March
2024
|
|
31
March
2023
|
|
30
September
2023
|
|
|
£'000
|
|
£'000
|
|
£'000
|
|
Abandonment costs
|
4,970
|
|
4,369
|
|
4,970
|
|
|
---------------------------------------
|
|
---------------------------------------
|
|
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|
The Group makes full provision for
the future costs of decommissioning of oil and gas production
facilities and pipelines on the installation of those facilities.
The amount of the provision is expected to be incurred up to 2029
when the producing oil and gas properties are expected to cease
operations.
These provisions have been created
based on the Group's internal estimates and expectation of the
decommissioning costs likely to incur in the future. For the period
under review, the directors have assessed that the discount rate
and inflation rate to be applied to the current cost of
decommissioning to be similar. On this basis, the current cost is
considered to be similar to the discounted net present
value.
15.
SUBSEQUENT EVENTS
On 14 May 2024, and as previously announced on 22 February 2024,
the Company settled its March 2024 royalty or ORRI ("Overriding
Royalty Interest") payments on Saltfleetby Field production in
shares. Accordingly, the Company issued a total of 27,448,470
Ordinary Shares to the ORRI holders representing a value of
£97,277.07.
On 19 June 2024, the Company announce that Antoine Vayner joined
the Board of Directors as a Non-Executive Director, representing
the largest shareholder, Kemexon Ltd.
Antoine brings considerable experience in origination and execution
of a variety of transactions in the energy space. He has previously
worked for St James's Wealth Management, the Mirabaud Group, and
IDCM (Finance and M&A advisory) in London, before taking a
position in strategy and business development of the investment arm
of Kemexon.
Antoine's appointment reinforces Kemexon's commitment to Angus'
growth and development. The combination of Kemexon's expertise and
support should enable the Company to pursue various growth
opportunities, both organic and inorganic, that have been
identified.
NOMINATED ADVISER
Beaumont Cornish Limited
("Beaumont Cornish") is the Company's Nominated Adviser and is
authorised and regulated by the FCA. Beaumont Cornish's
responsibilities as the Company's Nominated Adviser, including a
responsibility to advise and guide the Company on its
responsibilities under the AIM Rules for Companies and AIM Rules
for Nominated Advisers, are owed solely to the London Stock
Exchange. Beaumont Cornish is not acting for and will not be
responsible to any other persons for providing protections afforded
to customers of Beaumont Cornish nor for advising them in relation
to the proposed arrangements described in this announcement or any
matter referred to in it.