TIDMANGS
RNS Number : 1232G
Angus Energy PLC
14 July 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 AMED . UPON THE PUBLICATION OF THIS ANNOUNCEMENT VIA A
REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO
BE IN THE PUBLIC DOMAIN .
14 July 2023
Angus Energy Plc
("Angus Energy", the "Company" or together with its
subsidiaries, the "Group")
(AIM:ANGS)
Update on Bridge Financing, Hedge Management and Board
Change
-- GBP6m debt facility agreed in principle and waivers obtained
-- Potential GBP20m Global Refinancing
-- Discussion under way for future refinance of the senior and junior debt
-- Forward hedges to be partially unwound to allow exposure to higher gas prices
-- Board Change
-- Progress on commercialisation of the gas storage at Saltfleetby
GBP6.0 million Bridge Facility
Further to the announcements of 30 June and 10 July 2023, Angus
is pleased to confirm that it has now agreed the detailed terms for
the proposed GBP 6 million junior debt facility (the " GBP6m Bridge
Facility") and has received approval from the lenders under the
Company's senior secured loan facility to proceed. The Company has
now to execute the final documentation after which it will proceed
to completion and drawdown.
As identified in the Company's Interim Results announced on 30
June 2023, the Company is required to make a payment due under the
derivative instrument of approximately GBP3.5million by 20 July
2023 for financial hedges not settled in July and August 2022 due
to late start-up of gas production at the Saltfleetby Field. This
GBP6m Bridge Facility will meet this obligation as well as
providing funds for existing and proposed capital, general working
capital and operating expenditures around the temporary and
permanent flowlines at Saltfleetby .
The GBP6m Bridge Facility has been arranged by Aleph Commodities
Limited ("Aleph") and the ultimate providers are a range of private
family office investors introduced by Aleph, many of whom were
providers to the Company's 2021 Senior Loan Facility. The terms are
in line with the previous GBP3m Bridge Facility arranged in March
2023, which has been rolled until September 2023, and will be
announced on completion and drawdown planned for next week. Given
Aleph are a Substantial Shareholder in the Company the GBP6m Bridge
Facility and any associated fees payable to them will be treated as
a Related Party transaction under AIM Rule 13 and considered as
such once documentation is to be executed and announced.
Potential GBP20m Global Refinancing
Last month, the Company entered into a further non-binding,
conditional Term Sheet with Aleph Commodities Limited for a loan
facility of up to US$25 million for an 18 month term with an all-in
coupon of 15% per annum fixed ("Global Refinance Facility"). The
proposed Global Refinance Facility is extendable at the Company's
option for an additional period of 18 months, for a total tenor of
36 months. This facility, if it proceeds, would be intended to
refinance the c. GBP7.35 million outstanding under the Senior
Facility as well as the GBP3 million and GBP6millon Bridge
Facilities.
The Global Refinance Facility is expected to contain less
onerous covenants and would make allowance for the payment of
dividends in line with the Company's goal of returning capital to
shareholders. The improved financing terms, including the bullet
repayment profile will strengthen the balance sheet of the Company
and provide flexibility to deploy cash generated for distributions,
organic and inorganic growth opportunities. While the aim is to
conclude the refinancing as swiftly as possible, definitive
agreement needs to be reached with the ultimate provider(s) of the
funding for the Global Refinance Facility, due diligence and
discussions remain ongoing and there can be no guarantee that the
proposed Global Refinance Facility will be made available to the
Company. In parallel, the Company is also in discussions with
another financial provider to provide pre-payments for the gas and
restructuring of the hedges. These facilities could either be
complementary or an alternative to the Global Refinancing
Facility.
Potential Gas Storage
Interest has been expressed by three major integrated gas
players in long-term gas storage at Saltfleetby. The site was
previously fully permitted under the ownership of Wingas in 2010,
and we are now in the process of obtaining the first stages of a
fresh planning permission and detailed technical evaluation for
that project. Consultations have been held with various branches of
government on this subject which obviously comes at a critical time
for the energy security needs of the country. The monetization of
the gas storage would provide an additional revenue stream for the
Company and the Company expects to select a strategic partner by
year end on this project.
Forward Hedge Management
The Company's hedge counterparty has 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 being charged. The resulting hedge
profile will leave the Company and its shareholders with more
exposure to upward movements in gas prices going forward.
Board Change
George Lucan has notified the Board of his intention to step
down as Executive Chair with effect from 14(th) August 2023. The
search for a new non-executive Chair has been initiated.
George Lucan, Executive Chairman, comments: "We are grateful to
our core supporters for making this facility available at short
notice and so further evidencing their commitment to the
development of the Company whilst protecting fellow shareholders
from unnecessary dilution. This marks a moment, going forward from
which, the Company can show itself to be a self-standing and cash
generating vehicle simultaneously rewarding shareholders and
pursing growth in the energy transition.
Upon the successful completion of this financing, this will
represent an opportune moment for me to step aside and allow
Richard a free but firm hand on the tiller. Accordingly, I have
asked the Board to begin the search for a new non-executive Chair
and several candidates have already been approached. I have advised
the Directors that I shall step down from the Board in the middle
of August , but will remain available as a resource for the Company
for some months after that to assist in the prospective global
refinancing as well as our longer term gas storage project.
It has been a pleasure serving Angus and its stakeholders and an
equal pleasure to be able to leave shareholders with both a high
quality producing gas field, the additional potential of a national
storage asset, and a high calibre CEO."
Richard Herbert, CEO, comments: "With the Saltfleetby Field now
producing at design capacity, we are now seeing the benefits of
production well above our committed hedge volumes at strong summer
gas prices. The new bridge facility will allow us to close out the
legacy hedge payable which arose last year when production start up
was delayed and we can now look forward with confidence. I wish to
thank George for his help and guidance since my arrival at Angus
and for all his hard work and accomplishments for the Company."
For further information on the Company, please visit www.angusenergy.co.uk or contact:
Enquiries:
Angus Energy Plc www.angusenergy.co.uk
Richard Herbert/ George Lucan Tel: +44 (0) 208 899 6380
Beaumont Cornish Limited (Nomad) www.beaumontcornish.com
James Biddle / Roland Cornish Tel: +44 (0) 207 628 3396
WH Ireland Limited (Broker)
Katy Mitchell / Harry Ansell Tel: +44 (0) 207 220 1666
Flagstaff PR/IR angus@flagstaffcomms.com
Tim Thompson / Fergus Mellon Tel: +44 (0) 207 129 1474
Aleph Commodities info@alephcommodities.com
Disclaimers - this Announcement includes statements that are, or
may be deemed to be, "forward-looking statements". These
forward-looking statements can be identified by the use of
forward-looking terminology, including the terms "believes",
"estimates", "forecasts", "plans", "prepares", "anticipates",
"projects", "expects", "intends", "may", "will", "seeks", "should"
or, in each case, their negative or other variations or comparable
terminology, or by discussions of strategy, plans, objectives,
goals, future events or intentions. These forward-looking
statements include all matters that are not historical facts. They
appear in a number of places throughout this Announcement and
include statements regarding the Company's and the Directors'
intentions, beliefs or current expectations concerning, amongst
other things, the Company's prospects, growth and strategy. By
their nature, forward-looking statements involve risks and
uncertainties because they relate to events and depend on
circumstances that may or may not occur in the future.
Forward-looking statements are not guarantees of future
performance. The Company's actual performance, achievements and
financial condition may differ materially from those expressed or
implied by the forward-looking statements in this Announcement. In
addition, even if the Company's results of operations, performance,
achievements and financial condition are consistent with the
forward-looking statements in this Announcement, those results or
developments may not be indicative of results or developments in
subsequent periods. Any forward-looking statements that the Company
makes in this Announcement speak only as of the date of such
statement and (other than in
accordance with their legal or regulatory obligations) neither
the Company, nor the Bookrunner nor Beaumont Cornish nor any of
their respective associates, directors, officers or advisers shall
be obliged to update such statements. Comparisons of results for
current and any prior periods are not intended to express any
future trends or indications of future performance, unless
expressed as such, and should only be viewed as historical
data.
Beaumont Cornish Limited, which is authorised and regulated in
the United Kingdom by the Financial Conduct Authority, is acting as
nominated adviser to the Company in relation to the matters
referred herein. Beaumont Cornish Limited is acting exclusively for
the Company and for no one else in relation to the matters
described in this announcement and is not advising any other person
and accordingly will not be responsible to anyone other than the
Company for providing the protections afforded to clients of
Beaumont Cornish Limited, or for providing advice in relation to
the contents of this announcement or any matter referred to in
it.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
MSCNKQBQQBKDKOD
(END) Dow Jones Newswires
July 14, 2023 10:44 ET (14:44 GMT)
Grafico Azioni Angus Energy (LSE:ANGS)
Storico
Da Apr 2024 a Mag 2024
Grafico Azioni Angus Energy (LSE:ANGS)
Storico
Da Mag 2023 a Mag 2024