REG - Angus Energy PLC - Interim Results for Six Months ended 31 March 2025
30/06/2025 07:00
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RNS Number : 8572O Angus Energy PLC 30 June 2025
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.
30 June 2025
Angus Energy PLC
("Angus Energy", the "Company" or together with its subsidiaries, the "Group")
(AIM:ANGS)
Interim Results for the six months ended 31 March 2025
· All operations were conducted without any harm to people or the
environment
· EBITDA of £6.943m for the six month period
· Booster compressor successfully installed
Angus Energy is pleased to announce its interim accounts for the six months
ended 31 March 2025 as set out below. A copy of the Interims is available on
the Company's website www.angusenergy.co.uk (http://www.angusenergy.co.uk)
END
For further information please visit www.angusenergy.co.uk
(http://www.angusenergy.co.uk)
Angus Energy Plc
Carlos Fernandes
Finance
Director
Via Flagstaff
SP Angel Corporate Finance LLP (Nomad and Broker)
www.spangel.co.uk (http://www.spangel.co.uk/)
Stuart Gledhill / Jen Clarke / Richard Hail Tel: +44 (0)20 3470 0470
Flagstaff PR/IR
angus@flagstaffcomms.com (mailto: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 oil and gas company. Angus is
the leading onshore gas producer in the UK and has ambitious plans to grow
onshore production and diversify internationally. 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.
Chairman's Statement
Dear Shareholders,
I am pleased to share with you the interim results for the six months ended 31
March 2025. First, following his resignation, tendered after the period end,
the Board would like to thank Richard Herbert for his dedication and hard work
in taking the Company through what has been a transformative time in its
development.
Despite delays to the installation of the Booster, the Company reported strong
EBITDA for the period. The Board remains committed to unlocking the
significant potential embedded in our asset base and corporate platform. Our
goal is to position the Company to better weather near-term volatility while
laying the foundation for sustainable long-term growth.
All operations were conducted without any harm to people or the environment.
We have also taken proactive steps to pursue both organic and inorganic growth
opportunities. On the organic front, our technical teams have identified a
number of near-field development and optimization targets within our existing
portfolio that is needed to enhance production and cash flow. Concurrently,
our M&A team remains active in evaluating potential transactions that are
value-accretive, strategically aligned, and capable of accelerating our
transformation.
In line with these efforts, the Company is currently assessing a potential
reverse takeover (RTO) transaction. As a result, trading in our shares has
been temporarily suspended in accordance with regulatory requirements. We are
also engaged in active discussions with Trafigura on the restructuring of our
existing debt facility. While we understand this may cause uncertainty for
shareholders in the short term, we believe the RTO under consideration, along
with other M&A opportunities currently under consideration, could
significantly strengthen and expand our operational footprint by increasing
reserves production and cashflow, and create a path toward growth and renewed
shareholder value. At present, discussions pertaining to the RTO are at an
early stage. The Company has signed a non-binding agreement which is subject
to completion of due diligence, financing and other material considerations
and there is no certainty that it will be completed.
We are mindful of the responsibility we owe to our shareholders and
stakeholders, and I want to assure you that every effort is being made to
steer Angus through this period of transition. The Board remains confident
that, with discipline and strategic focus, we can emerge stronger and better
positioned to take advantage of the opportunities ahead.
Net revenue from oil and gas production during the period was £11.302m on
gross production of 17,361 bbls of gas condensate, 3,695 bbls of crude oil and
10.443 mm therms of natural gas as against hedged volumes of 7.5 mm therms for
the period. This was the result of production from the Saltfleetby Gas Field
and the Brockham Oil Field. Average sales prices achieved during the period
were £35.18/bbls for gas condensate, £57.58/bbls for crude oil and
£1.00/therm for natural gas.
The Group recorded a profit of £0.756m, which included an operating profit of
£3.367m. EBITDA for the period was £6.943m. The derivative profit is based
on future production and calculated using forward gas prices as at 31 March
2025. The derivative will be realised to a profit or loss when the payments
under the derivative instruments become due.
Operational Highlights
Saltfleetby (100% Working Interest)
Gas volumes produced and sold from the Saltfleetby Field equalled 10.443 mm
therms in aggregate for the period as against hedged volumes of 7.5 mm therms
for the period. Operational efficiency was 90% for the period. Gas condensate
(liquid) production was 17,361 bbls for the period.
The new booster compressor at the Saltfleetby Gas Field commenced operation on
11 April 2025. The compressor operates at a lower suction pressure than the
two existing compressors at the field, allowing more pressure drawdown of the
wells and helping to alleviate the impact of liquid loading in the wells,
which has been increasingly impacting gas flow rates in the last three months.
The introduction of the booster compressor has resulted in a circa 15%
increase in production compared with the average production forecasts without
the booster operational.
Angus has been conducting well tests to determine the optimum configuration of
the plant and wells to increase production. Well tests identified a number of
in-wellbore production enhancement opportunities which are being progressed to
FID ("Final Investment Decision"). These opportunities, targeted for Q3 2025,
include coil tubing workovers which are necessary to enhance production.
Future Drilling
Building on the seismic reprocessing and remapping work completed in 2023, a
geocellular, dynamic reservoir model has been constructed across the
Westphalian Sandstone and underlying Namurian reservoir at the Saltfleetby Gas
Field. The reservoir model gives us a greater understanding of the reservoir
properties and fluid flow within the reservoir and in turn has then been used
to identify several infill drilling opportunities. Additionally, this
reservoir model will be fundamental in the progression of the long-term plan
for the Satlfleetby field as a future storage facility for CO2, Natural Gas or
Hydrogen at the end of gas production.
Angus is evaluating the drilling of a new well which has received full
regulatory approval, adding a fourth producer to the field to accelerate
production and increase shareholder value. The well is in the preliminary
design phase with a target drilling date of Q1 2026, subject to funding and
pending delivery time for long lead items. The target drill date would allow
for 2 and up to 6 mmcf/d of incremental field production in Q2
2026.
Brockham (80% Working Interest)
Gross oil volumes sold from the Brockham Field equalled 3,695 barrels in
aggregate for the period, an average of 24 bopd. The Company has continued
optimization of oil production through improvements in operational efficiency
and the field is currently producing at circa 40 bopd gross. Production will
continue to be monitored, and an assessment is being undertaken to determine
if BRX4Z, a suspended offset well, can be commercially brought into production
to increase recovery from the Portland reservoir.
Balcombe (25% Working Interest)
Following the initial 7-day well test in the Autumn of 2018, a planning
application was submitted in late 2019 for a longer 3-year well test on the
Balcombe-2Z well. The aim of the planned operation is to recover remaining
drilling fluids from the wellbore and conduct a long-term extended well test
to indicate to what degree the well and field can produce hydrocarbons at a
commercial rate. The Planning Inspectorate's decision in October 2023 to grant
the Company the right to test the existing well, was appealed by a residents'
organization and heard in court on the 26th and 27th of January 2025. The
decision of the High Court was made public on 16 April 2025 and ruled in
favour of the Company. The Company is now evaluating options for the extended
well test.
Lidsey (80% Working Interest)
Due to the high cost of water disposal, Lidsey has remained shut in, however,
as previously stated, a planning application has been submitted to allow for
transportation of produced water off-site to the Brockham oil field for
voidage replacement and pressure maintenance. This application has now been
approved, and we are awaiting imminent formal validation. Once received, the
Company will progress to test the integrity of the well in readiness for
future production, confirm the operability of the currently installed
artificial lift, and establish the re-instatement production potential of the
X2 well. This is low-cost operation, and if successful, it will allow for the
reinstatement of the site with produced water trucked to Brockham for
injection.
Financial Highlights
On 19 March 2025, the Company issued 427,893,123 Ordinary Shares at 0.02 pence
per share to Forum Energy Services Limited in relation to a £1,000,000
Deferred Consideration based on a conversion notice received on 22 February
2025. The Company also issued a further 137,145,481 in relation to accrued
interest on the Deferred Consideration up to 31 December 2024.
Under existing arrangements and calculation methods the Company is required to
issue 368,376,672 shares (or cash equivalent) in aggregate in settlement of
the Q2, Q3 and Q4 2024 and Q1 2025 royalty interest. Angus is currently
negotiating the timing of the settlement with the royalty interest holders and
will provide an update accordingly.
As announced on 22 February 2024, Angus Energy entered into a Financing
Facility with a subsidiary of Trafigura Group PTE Ltd ("Trafigura"). The terms
of the Facility are unchanged from those of the term sheet summarised by the
Company via RNS on 20 December 2023, being a 5-year loan, with a twelve-month
grace period on principal repayment and then approximately even amortisation
from March 2025. Production variability during the first quarter of 2025,
before the booster compressor was commissioned, has resulted in the first
principal repayment of £1.25 million, being deferred as part of ongoing
discussions with Trafigura about restructuring the repayment schedule.
As at 31 March 2025 the Group had cash of £0.785m.
On 19 June 2025, the Company announced that Richard Herbert had tendered his
resignation as CEO and a director of the Company with immediate effect.
Outlook
The Company looks forward to providing an update on the restructuring of its
debt arrangements alongside the stabilisation and optimisation of production
as Saltfleetby.
In parallel the Company continues to progress 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 2025
ANGUS ENERGY PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the period ended 31 March 2025
Note Six months Six months
31 March 31 March
2025 Unaudited 2024
Unaudited
£'000 £'000
Revenue 4 11,302 12,131
Cost of sales (2,854) (3,109)
Depletion cost (3,576) (4,786)
Gross profit 4,872 4,236
Administrative expenses (1,505) (2,005)
Share based payment charge - (80)
Operating profit 3,367 2,151
Derivative financial instrument gain 11 4,412 8,981
Realised derivative costs 11 (5,437) (3,442)
Finance cost (1,585) (1,915)
Profit on ordinary activities before taxation 757 5,775
Income tax expense - -
Profit for the period attributable to the 757 5,775
equity holder of the Company
Profit per share (EPS): £ £
Basic and diluted (whole £'s) 12 0.00017 0.0014
ANGUS ENERGY PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 31 March 2025
As at As at As at
31 March 31 March 30 September
2025 2024 2024
Unaudited Unaudited Audited
Note £'000 £'000 £'000
Non-current assets
Property, plant and equipment 5 40 12 6
Exploration and evaluation assets 6 5,457 5,647 5,456
Oil and gas production assets 7 69,048 76,489 70,951
Lease assets - - 5
74,545 82,148 76,418
Current assets
Trade and other receivables 8 2,441 3,941 3,374
AFS financial investments 2 9 5
Lease assets - 10 1
Cash and cash equivalent 785 5,438 2,163
3,228 9,398 5,543
Total Assets 77,773 91,546 81,961
Equity
Share capital 9,974 8,789 8,844
Share premium 48,594 48,376 48,412
Merger reserve (200) (200) (200)
Loan Note reserve - - -
Accumulated loss (17,611) (9,440) (18,368)
Total Equity 40,757 47,525 38,688
Current liabilities
Trade and other payables 9 6,261 4,708 8,315
Loan payable 10 4,630 1,250 3,380
Derivative liability 11 6,481 10,146 10,702
17,372 16,104 22,397
Non-current liabilities
Provisions 14 5,698 4,970 5,698
Trade and other payables 9 24 1,610 -
Loan payable 10 13,922 18,750 14,988
Derivative Liability 11 - 2,587 190
Total non-current liabilities 19,644 27,917 20,876
Total liabilities 37,016 44,021 43,273
77,773 91,546
Total Equity and Liabilities 81,961
ANGUS ENERGY PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the period ended 31 March 2025
Share Share premium Merger Total
Capital Reserve Loan Note reserve Retained equity
Earnings
£'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 October 2023 7,254 45,500 (200) (15,295) 37,259
-
- - - 5,775 5,775
Profit for the period -
Total comprehensive income - - - 5,775 5,775
for the period -
Transaction with owners:
Issue of placing shares 1,535 3,396 - - - 4,931
Less: issuance costs - (520) - - - (520)
Grant of options - - - - 80 80
Balance at 31 March 2024 8,789 48,376 (200) (9,440) 47,525
-
Balance at 1 October 2023 7,254 45,500 (200) - (15,295) 37,259
- - - (4,301) (4,301)
Loss for the year -
Total comprehensive income - - - (4,301) (4,301)
for the year -
Transaction with owners:
Issue of shares 1,590 2,919 - - - 4,509
Less: issuance cost - (7) - - - (7)
Grant of share options - - - - 410 410
Grant of Warrant as finance costs - - - - 818 818
Balance at 30 September 2024 8,844 48,412 (200) (18,368) 38,688
-
- - - 757 757
Profit for the period -
Total comprehensive income - - - 757 757
for the period -
Transaction with owners:
Issue of placing shares 1,130 182 - - - 1,312
Less: issuance costs - - - - - -
Grant of share options - - - - - -
9,974 48,594 (200) - (17,611) 40,757
Balance at 31 March 2025
ANGUS ENERGY PLC
CONSOLIDATED STATEMENT OF CASH FLOWS
For the period ended 31 March 2025
Six months 31 March Six months 31 March
2025 Unaudited 2024
Unaudited
£'000 £'000
Cash flow from operating activities
Profit before taxation 757 5,775
Adjustment for:
Unrealised derivative financial instrument (gain)/loss (4,412) (8,981)
Interest payable - -
Share based payment charge - 80
Depletion charges 3,576 4,786
Depreciation and amortisation charges 4 8
Loss on AFS investments 3 3
Write-off of Inventory - -
Revaluation of Investment - -
Lease amortisation charges - 16
(72) 1,687
Operating cash flows before movements in working capital
Change in trade and other receivables 731 (965)
Change in trade and other payables 852 (1,622)
Net cash (used) / generated in operating activities 1,511 (900)
Cash flows from investing activities
Payment of deferred consideration (1,000) (2,358)
Changes in trade and other payable - -
Acquisition of exploration and evaluation assets - (19)
Acquisition of oil and gas production assets (1,673) (1,027)
Acquisition of Property, plant and equipment (40) -
Net cash used in investing activities (2,713) (3,404)
Cash flows from financing activities
Loan facility repayment - (16,841)
Proceeds from loan drawdown - 20,000
Interest paid (1,488) -
Net proceeds from issue of share capital 1,312 4,411
Net cash generated from financing activities (176) 7,570
Net increase in cash & cash equivalents (1,378) 3,266
Cash and cash equivalent at beginning of year 2,163 2,172
Cash and cash equivalent at end of period 785 5,438
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 2025 and 31 March 2024 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 2024, 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 2024 is available on the Company's website.
The interim report for the six months ended 31 March 2025 was approved by the
Directors on 28 June 2025.
Going Concern
The Group recorded a profit of £0.757m (2024: £5.775m), which included an
operating profit of £3.367m (2024: £2.151m). EBITDA for the period was
£6.943m (2024: £6.937m). The Group recorded net cash inflows from operating
activities of £1.511 million (2024: outflow of £0.9 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 2025, the Group had
£0.785m (2024: £5.438m) 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
current production and 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, completion of the in-wellbore
production enhancement opportunities and the restructuring of the Trafigura
Debt. 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 delays to the
cashflow assumptions, this would be subject to further negotiation with the
derivative holder and lender 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 management's current plan, the Directors consider that it is
appropriate to adopt the going concern basis of 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 2025 were approximately £5.457m
and £69.048m respectively. No impairments were made during the interim
period.
4. OPERATING SEGMENTS
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.
Currently, the Group's principal revenue is derived from the sale of natural
gas and condensate and crude 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 31 March
2025 2024
£'000 £'000
Sale of gas condensate 610 849
Sale of crude oil 192 -
Sales of natural gas 10,500 11,282
Total Revenue 11,302 12,131
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 incurred £40,000 in additions to property, plant
and equipment (2024: £nil). The depreciation charge for the period on the
Group's property, plant and equipment was £4,368 (2024: £4,819).
6. EXPLORATion ANd evALUaTion ASSETS
Total
£'000
Cost or valuation
At 31 March 2024 5,647
Additions -
Increase in abandonment provision 1
(Disposal) (192)
-------------------------------------
At 30 September 2024 5,456
Additions 1
-------------------------------------
At 31 March 2025 5,457
-------------------------------------
Amortisation
At 30 September 2024 -
Charge for the period -
-------------------------------------
At 31 March 2025 -
------------------------
Net book value
At 30 September 2024 5,456
==============================
At 31 March 2024 5,647
==============================
At 31 March 2025 5,457
==============================
As of 31 March 2025, the Group retained a 25% interest in the Balcombe Field
and is still the operator of the field.
7. OIL AND GAS PRODUCTION ASSETS
Total
£'000
Cost or valuation
At 30 September 2023 93,952
Additions 1,027
-------------------------------------
At 31 March 2024 94,979
Additions 2,452
Increase in abandonment provision 726
-------------------------------------
At 30 September 2024 98,157
Additions 1,673
-------------------------------------
At 31 March 2024 99,830
-------------------------------------
Depreciation and impairment
At 30 September 2023 13,704
Charge for the period 4,786
-------------------------------------
At 31 March 2024 18,490
Charge for the period 3,946
Impairment for the period 4,770
-------------------------------------
At 30 September 2024 27,206
Charge for the period 3,576
-------------------------------------
At 31 March 2025 30,782
-------------------------------------
Net book value
At 30 September 2024 70,951
==============================
At 31 March 2024 76,489
==============================
At 31 March 2025 69,048
==============================
As of 31 March 2025, the Group retained a 100% interest in the Saltfleetby
Field, an 80% interest in the Lidsey field and an 80% in the Brockham field
and is still the operator of all the fields.
8. TRADE AND OTHER RECEIVABLES
31 March 31 March 30 September 2024
2025 2024
£'000 £'000 £'000
Current
Accrued sales income 1,450 1,537 1,801
VAT recoverable 515 446 610
Amount due from farmees - - 285
Rent deposit 150 130 150
Other receivables 326 1,828 528
------------------------------- ----------------------------- -----------------------------
2,441 3,941 3,374
------------------------------- ----------------------------- -----------------------------
The carrying amount of trade and other receivables approximates to their fair
value.
9. TRADE AND OTHER PAYABLES
31 March 31 March 30 September
2025 2024 2024
£'000 £'000 £'000
Non-Current
Deferred consideration on Saltfleetby
Energy Limited acquisition - 1,587 -
Lease liability - 23 -
------------------------------- ----------------------------- -----------------------------
- 1,610 -
Current
Trade payables 2,085 2,604 3,637
Other taxation - - -
Deferred consideration on Saltfleetby 1,887 1,300
Energy Limited acquisition 2,887
Accruals 947 413 857
Other payables 373 373 241
Interest payable - loan 354 - 231
Lease Liability - 18 18
ORRI 615 - 444
------------------------------- ----------------------------- -----------------------------
6,261 4,708 8,315
------------------------------- ----------------------------- -----------------------------
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 was 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.
The Group incurred transaction costs of £1.85m, which have been capitalised
against the loan proceeds and will be amortised over the life of the loan
facility. £0.548m of the cost was paid in cash, £0.550m was offset against
the loan proceeds drawn down, and £0.750m was settled by the issue of shares.
At 31 March 2025, the remaining unamortised amount was £1.448m.
£20m Trafigura Loan 31 March 2025 31 March 2024 30 September 2024
£'000 £'000 £'000
Principal 20,000 20,000 20,000
20,000 20,000 20,000
LOAN PAYABLES SUMMARY: 31 March 2025 31 March 2024 30 September 2024
£'000 £'000 £'000
CURRENT
£20m Trafigura Loan 4,630 1,250 3,380
4,630 1,250 3,380
NON-CURRENT
£20m Trafigura Loan 13,922 18,750 14,988
13,922 18,750 14,988
Production variability during Q1 2025, before the booster compressor was
commissioned, has resulted in the first principal repayment of £1.25 million,
being deferred as part of ongoing discussions with Trafigura about
rescheduling the principal repayments.
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.
The Company's hedge counterparty agreed to allow the Company to crystallise
(i.e. unwind) 50% of its forward hedge liability from Q3 2024 to the end of
the hedge profile in June 2025. Settlement for each unwind is deferred until
the periods in question and no interest is charged.
After the refinancing with Trafigura, the existing Mercuria hedges were
novated and restructured with Trafigura, incurring a credit charge of 6 pence
per therm.
The Company also struck 7.3 million therms of new hedges to price protect the
Mercuria hedges crystallised in July 2023. The Company has received further
flexibility under its financing facility with Trafigura to manage these
commitments ahead of the installation of the booster compressor and the expiry
of the legacy hedges by deferring the settlement date up to 11 months at its
discretion. The total deferred amount is £4,062m will bear interest at SONIA
plus 10%.
The Trafigura Facility requires a rolling gas price protection policy to be
put in place which stipulates a minimum protected amount equal to 45% of gas
produced for the 12 months immediately ahead, and 33% for the following 6
months and 0% thereafter. As such, on 25 February 2025, the Company struck an
additional 6.38 million therms at an average price of 87 pence per therm.
The resulting revised hedge profile as at 31 March 2025 as shown below:
Mercuria hedges restructured with Trafigura as at 31 March 2025:
Period of Gas Production Quantity in Therms Fixed price in pence per Therm
1-Apr-25 30-Jun-25 3,750,000 29.25
3,750,000
Hedges struck under the Trafigura Facility as at 31 March 2025 are as below:
Period of Gas Production Quantity in Therms Fixed price in pence per Therms
1-Jul-25 31-Jul-25 1,085,000 86.05
1-Aug-25 31-Aug-25 1,085,000 86.05
1-Sep-25 30-Sep-25 1,050,000 86.05
1-Oct-25 31-Oct-25 1,085,000 90.26
1-Nov-25 30-Nov-25 1,050,000 90.26
1-Dec-25 31-Dec-25 1,085,000 90.26
1-Jan-26 31-Jan-26 620,000 123.08
1-Feb-26 28-Feb-26 560,000 121.33
1-Mar-26 31-Mar-26 620,000 115.35
1-Apr-26 30-Apr-26 600,000 101.53
1-May-26 31-May-26 620,000 97.27
1-Jun-26 30-Jun-26 600,000 95.82
1-Jul-26 31-Jul-26 465,000 95.20
1-Aug-26 31-Aug-26 465,000 95.85
1-Sep-26 30-Sep-26 450,000 96.50
1-Oct-26 31-Oct-26 465,000 92.28
1-Nov-26 30-Nov-26 450,000 98.16
1-Dec-26 31-Dec-26 465,000 100.07
12,820,000
Crystallised hedges at fixed price as at 31 March 2025:
Period of Gas Production Quantity in Therms Fixed price in pence per Therm
1-Aug-24 31-Aug-24 620,000 66.60
1-Sep-24 30-Sep-24 600,000 66.60
1-Oct-24 31-Oct-24 620,000 70.75
1-Nov-24 30-Nov-24 600,000 70.75
1-Dec-24 31-Dec-24 620,000 70.75
1-Jan-25 31-Jan-25 620,000 64.10
1-Feb-25 28-Feb-25 560,000 64.10
1-Mar-25 31-Mar-25 620,000 64.10
1-Apr-25 30-Apr-25 600,000 43.60
1-May-25 31-May-25 620,000 43.60
1-Jun-25 30-Jun-25 600,000 43.60
6,680,000
As of the reporting date, the expected net cash flow on the sale of natural
gas amounted to £17.746m (2024: £14.901m) resulting in a derivative
liability of £6.481m (2024: £12.733m), including £4,062m of deferred
crystalised hedges, 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 2026 31 December 2026 Total
£'000 £'000 £'000
Net Liability on Swap Contract (7,040) 559 (6,481)
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 2025 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
£4.412m (2024: £8.981m) as a result of a decrease in forward pricing as at
31 March 2025. An amount of £5.437m was realised in the period and paid to
Trafigura.
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 31 March
2025 2024
Net profit attributable to equity holders of the Group 756,411 5,774,077
Weighted average number of ordinary shares 4,438,883,371 4,018,011,729
Basic and diluted profit per share (whole £'s) 0.00017 0.0014
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 31 March 30 September
2025 2024 2024
£'000 £'000 £'000
5,698 4,970
Abandonment costs 5,698
--------------------------------------- --------------------------------------- ---------------------------------------
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 7 May 2025, the Company announced that due to production variability during
the first quarter of 2025, before the booster compressor was commissioned, has
resulted in the first principal repayment of £1.25 million, being deferred as
part of ongoing discussions with Trafigura about resculpting the repayment
schedule.
On 19 May 2025, and following market speculation, the Company announced it has
entered into a non-binding agreement to purchase a group of producing assets
located in the Gulf of America ("Potential Transaction"). Given the nature of
the Potential Transaction, this would constitute a reverse takeover under Rule
14 of the AIM Rules for Companies and accordingly, the Company's shares have
been suspended from trading.
On 6 June 2025, and Further to the announcement of 7 May 2025, Angus Energy
confirms that positive discussions with Trafigura regarding the resculpting of
the original payment schedule and the potential transaction are ongoing. The
Company will inform the market once an agreement has been reached.
On 19 June 2025, the Company announced that Richard Herbert had tendered his
resignation as CEO and a director of the Company with immediate effect.
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