REG - Angus Energy PLC - Saltfleetby Drilling and Corporate Update

Angus EnergyAnnouncement

02/03/2023 07:00

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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 (http://www.angusenergy.co.uk/)
 George Lucan                  Tel: +44 (0) 208 899 6380

 Beaumont Cornish (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) 113 394 6600

 Flagstaff PR/IR               angus@flagstaffcomms.com (mailto: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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