TIDMANGS
RNS Number : 4403X
Angus Energy PLC
20 December 2023
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 .
20 December 2023
Angus Energy Plc
("Angus Energy", the "Company" or together with its
subsidiaries, the "Group")
(AIM:ANGS)
Non-binding Heads of Terms agreed for GBP20 million Global
Refinance
Appointment of Subsurface and Wells Lead
-- GBP20m debt facility agreed with Trafigura PTE Ltd
("Trafigura") to refinance all existing debt and fund additional
capex projects to raise production at Saltfleetby Field
-- 5 year amortising term with one year repayment grace period
and reduced cash sweep for accelerated repayment
-- Interest margin over SONIA of 8% compared to 12% on existing
senior debt and 15% on bridge facility
-- All existing senior and bridge debt to be repaid
-- Medium-term capex needs fulfilled
-- Trafigura to act as Offtaker
-- Existing hedge contract to be replaced with a fixed price offtake
-- Work on gas storage feasibility to be accelerated with funds
from the new facility and revised subsurface mapping
Further to the Company's announcement of 14 July 2023 and
subsequently, Angus is pleased to confirm that it has now entered
into detailed, non-binding, heads of terms ("Heads of Terms") for a
GBP20 million senior secured debt facility (the "Refinance
Facility") with Trafigura and has received indicative approval from
the lenders under the Company's existing senior secured loan
facility to proceed. The Company has now to agree definitive
documentation after which it will proceed to completion and
drawdown. Trafigura has provided an expected closing date during
the course of January 2024.
The Refinance Facility will be used to repay existing senior and
bridge debt (presently c. GBP5 million and GBP6.7 million
respectively) and reduce the deferred consideration due to Forum
Energy (presently c. GBP5 million) as well as to initiate
expenditure on a fourth well at Saltfleetby to be completed by Q1
2025.
As part of closing of the Refinance Facility, Trafigura will
work with the Company's existing hedge provider to organise an
orderly transfer of the existing hedge obligations which run until
June 2025. A dynamic rolling gas price protection programme has
been agreed which will provide protection at least until the
scheduled maturity date of the Refinance Facility. The offtake
arrangement with Trafigura will be substantially in line with the
existing gas sales agreement; physical fixed price contracts will
be entered into on part of the production to cover the existing
hedge position until June 2025 and for risk management beyond
that.
The headline term of the Refinance Facility is 5 years with even
quarterly amortisation payments after an initial repayment holiday
of 12 months. Additionally, there is a cash sweep whereby 50% of
Angus' revenues (after deducting all group wide costs, including
financing charges) are to be applied each quarter to redeem the
loan. To the extent that sweep repayments are made, the even
quarterly amortisation payments will be adjusted.
The Refinance Facility has been arranged by Aleph Commodities
Limited ("Aleph"). Total arrangement fees to Aleph and Trafigura
for the new facility are subject to final agreement. Final terms
will be confirmed in an announcement of the definitive agreement
and will be dealt with in accordance with AIM Rule 13 as
appropriate at that time. Similarly, the revised arrangement with
Forum Energy will be dealt with in accordance with AIM Rule 13 as
appropriate at that time.
The Heads of Terms also include standard terms on change of
control, covenants and events of default.
Detailed terms will be released on completion of documentation
which is expected to conclude early in the New Year.
New Appointment
The Company is pleased to announce that Ross Pearson, former
Technical Director of Star Energy plc (formerly IGAS plc) is
joining the Company as the lead on all wells and subsurface
activity. An options package of 25,000,000 options at 0.67p has
been agreed with vesting dates being subject to contract
milestones.
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 Tel: +44 (0) 208 899 6380
Beaumont Cornish Limited (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) 207 220 1666
Flagstaff PR/IR angus@flagstaffcomms.com
Tim Thompson / Fergus Mellon Tel: +44 (0) 207 129 1474
Aleph Commodities info@alephcommodities.com
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.
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END
MSCFIFLDFRLIFIV
(END) Dow Jones Newswires
December 20, 2023 02:17 ET (07:17 GMT)
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