TIDMANGS
RNS Number : 6475R
Angus Energy PLC
02 March 2023
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) 6/2014 AS IT FORMS
PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION
(WITHDRAWAL) ACT 2018 ("MAR"), AND IS DISCLOSED IN ACCORDANCE WITH
THE COMPANY'S OBLIGATIONS UNDER ARTICLE 17 OF MAR.
2 March 2023
Angus Energy Plc
("Angus Energy", "Angus" or the "Company")
Saltfleetby Drilling and Operations Update, proposed Board
Changes and Offer of Additional Funding
-- SF7v drilling has completed successfully.
-- Cleaning and Testing to take place in March
-- 2(nd) Compressor has now been installed and commissioned with
a view of fully running during the course of March
-- Richard Herbert to be appointed CEO with full control of day to day operations
-- George Lucan to be appointed Executive Chairman with a focus
on strategy and stakeholder relations
-- Offer received from a group of core shareholders to provide a
junior debt facility to cover any drilling programme overruns as
well as diligence costs with potential acquisitions, as an
alternative to a dilutive placing
Drilling Programme
Angus Energy (AIM: ANGS) is pleased to announce that, in line
with the announcement of 10 February 2023, the drilling of the SF7v
sidetrack at the Saltfleetby Field has concluded, reaching a total
measured depth of 2746 meters in the Westphalian 1D reservoir. The
well bore has been secured with 4.5" liner to that depth, slotted
across the reservoir. Completion operations will commence later
this week after surplus equipment has been demobilised.
Following the setting of the well completion production tubing,
well clean-up operations will be conducted in the middle of March
once coiled tubing equipment becomes available. Flow testing will
follow shortly afterward and, assuming coiled tubing services are
available at the scheduled date, the additional flow from this well
should be available for export from 1 April. The Company will
announce results of the flow test once complete.
The Company is confident from the electric logging, mud logging
and gas shows in the reservoir section that the well will be a
successful producer. Furthermore, the well is drilled alongside and
replicates what was previously the best producing well in the
field. Technical detail on the final pathway will be made available
on the Company's website and social media pages later today.
Wet commissioning of the second compressor began last week and
we expect successful full running in the coming days and are
confident that the unit will be available for duty well before 1
April.
Proposed Board Reorganisation
In line with Angus' s vision of becoming a significant player in
the aggregation, production and storage of gas, the Board has
decided to strengthen its leadership to achieve its goals of
delivering growth and returns to shareholders. Accordingly, the
Board has resolved to make the following changes, subject to final
terms being agreed:
Richard Herbert, a geologist by background, who joined the Board
as a Non-Executive Director earlier this year has agreed to assume
the role of Chief Executive Officer in charge of day to day
management of the Company and responsibility for the ongoing
development of the management team. Richard's background at the
helm of independent oil and gas companies, such as Frontera Energy,
combined with his experience as Head of Exploration at BP, his
particular experience in the UK onshore makes him the ideal
candidate for strengthening the execution of the Company's
strategy.
George Lucan will take up the role of Executive Chairman with
particular responsibility for stakeholder and governmental
relations and strategic direction. Carlos Fernandes will continue
in his role as Finance Director. Andrew Hollis will remain
Technical Director of the Company but will be stepping down from
his Board responsibilities.
Paddy Clanwilliam will step down as Non-Executive Chairman to
become Senior Independent Non-Executive Director, alongside
Krzysztof Zielicki, who remains our second Independent
Non-Executive Director. Paul Forrest will remain a Non-Executive
Director representing the interests of Forum Energy. One further
Non-Executive Director is presently under consideration. A further
announcement will be made once these changes are finalised.
Offer of Additional Funding
The cost overrun on drilling and the demands of evaluating new
projects, including potential gas storage at Saltfleetby, have
resulted in a short-term funding need for the Company. The Board
after discussions with major shareholders has determined that it
was prudent to secure additional funding, and wherever possible,
such funding needs should be met with equity dilution only as a
last resort.
Accordingly, Angus has entered into a non-binding, conditional
Term Sheet with Aleph Commodities for a GBP 3 million junior debt
facility intended to convert into a larger and longer-term
prepayment facility, whilst production and revenue increase as the
SF7v well comes online. The key features are a 6 month bridge
finance, priced at SONIA + 15%, 150 million warrants, struck at the
previous placement level of 1.65p/share and a repayment option,
should the facility not be converted into the prepayment facility,
of redemption in either cash or shares (at the option of the
Company) at a 25% discount to the 30 day VWAP subject to a floor of
1p per share. Although there can be no guarantee that final
documentation will be executed successfully, it is the Company's
aim to expedite this process over the coming days.
Aleph Commodities and its associates are Substantial
Shareholders in the Company and accordingly, should definitive
agreement be reached in respect of the offer of funding subject to
the Term Sheet, the transaction will be a Related Party Transaction
under AIM Rule 13; the requirements of AIM Rule 13 will therefore
be addressed at that time.
A further announcement including the full terms as appropriate,
will be made in due course.
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 Tel: +44 (0) 207 628
Cornish 3396
WH Ireland Limited
(Broker)
Katy Mitchell/ Harry Tel: +44 (0) 113 394
Ansell 6600
Flagstaff PR/IR angus@flagstaffcomms.com
Tim Thompson Tel: +44 (0) 207 129
1474
Fergus Mellon
Aleph Commodities info@alephcommodities.com
Qualified Person's Statement: Andrew Hollis, the Technical
Director of the Company, who has over 40 years of relevant
experience in the oil and gas industry, has approved the
information contained in this announcement. Mr Hollis is a Fellow
of the Geological Society and member of the Society of Petroleum
Engineers.
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 player in
the aggregation, production and storage of energy. 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.
Important Notices
This announcement contains 'forward-looking statements'
concerning the Company that are subject to risks and uncertainties.
Generally, the words 'will', 'may', 'should', 'continue',
'believes', 'targets', 'plans', 'expects', 'aims', 'intends',
'anticipates' or similar expressions or negatives thereof identify
forward-looking statements. These forward-looking statements
involve risks and uncertainties that could cause actual results to
differ materially from those expressed in the forward-looking
statements. Many of these risks and uncertainties relate to factors
that are beyond the Company's ability to control or estimate
precisely. The Company cannot give any assurance that such
forward-looking statements will prove to have been correct. The
reader is cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
announcement. The Company does not undertake any obligation to
update or revise publicly any of the forward-looking statements set
out herein, whether as a result of new information, future events
or otherwise, except to the extent legally required.
Nothing contained herein shall be deemed to be a forecast,
projection or estimate of the future financial performance of the
Company.
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END
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