Interim Results for Six Months ended 31 March 2025

Angus Energy

30/06/2025 07:00

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

 

END

 

For further information please visit 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

 

Stuart Gledhill / Jen Clarke / Richard Hail    Tel: +44 (0)20 3470 0470

 

Flagstaff PR/IR                                                                                     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
31 March
2025 Unaudited
Six months
31 March
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
equity holder of the Company
757
5,775
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
31 March
As at
31 March
As at
30 September
2025
Unaudited
2024
Unaudited
2024
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
Total Equity and Liabilities
77,773
91,546
81,961

 

ANGUS ENERGY PLC

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the period ended 31 March 2025

 

Share
Capital
Share premium
Merger
Reserve
Loan Note reserve
Retained
Earnings
Total
equity
£'000
£'000
£'000
£'000
£'000
£'000
Balance at 1 October 2023
7,254
45,500
(200)
-
(15,295)
37,259
Profit for the period
-
-
-
-
5,775
5,775
Total comprehensive income
for the period
-
-
-
-
5,775
5,775
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
Loss for the year
-
-
-
-
(4,301)
(4,301)
Total comprehensive income
for the year
-
-
-
-
(4,301)
(4,301)
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
Profit for the period
-
-
-
-
757
757
Total comprehensive income
for the period
-
-
-
-
757
757
Transaction with owners:
Issue of placing shares
1,130
182
-
-
-
1,312
Less: issuance costs
-
-
-
-
-
-
Grant of share options
-
-
-
-
-
-
Balance at 31 March 2025
9,974
48,594
(200)
-
(17,611)
40,757


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
Operating cash flows before movements in working capital
(72)
1,687
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
2025
31 March
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
2025
31 March
2024
30 September 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
2025
31 March
2024
30 September
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
Energy Limited acquisition
1,887
1,300
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
2025
31 March
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
2025
31 March
2024
30 September
2024
£'000
£'000
£'000
Abandonment costs
5,698
4,970
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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