REG - Angus Energy PLC - £20 million Global Refinance

Angus EnergyAnnouncement

20/12/2023 07:30

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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 £20 million Global Refinance

Appointment of Subsurface and Wells Lead

 

·    £20m 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. £5 million and £6.7 million respectively) and reduce the
deferred consideration due to Forum Energy (presently c. £5 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
(http://www.angusenergy.co.uk) or contact:

Enquiries:

 

Angus Energy Plc
                www.angusenergy.co.uk
(http://www.angusenergy.co.uk)

 

Richard Herbert
                                Tel: +44 (0) 208
899 6380

 

Beaumont Cornish Limited (Nomad)      www.beaumontcornish.com
(http://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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