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Angus Energy PLC on Friday announced a refinancing package, a potential new revenue stream and the departure of a senior executive.
The UK-focused onshore oil and gas company confirmed it has agreed the terms for the proposed £6 million junior debt facility, announced previously. This will enable it to meet a £3.5 million payment due for financial hedges not settled in 2022 due to late start-up of gas production at the Saltfleetby Field. Additional funds will be used for general working capital and operating expenditures at Saltfleetby. Terms are in line with a previous £3 million bridge facility, Angus Energy said.
In addition, Angus has agreed a $25 million loan facility for an 18 month term with an all-in coupon of 15% per annum with Aleph Commodities Ltd. This facility, if it proceeds, would be intended to refinance the £7.4 million outstanding under the senior facility as well as the £3 million and £6 million bridge facilities. The company explained the improved financing terms will strengthen its balance sheet.
Angus Energy also said interest has been expressed by three major integrated gas players in long-term gas storage at Saltfleetby. The monetisation of the gas storage would provide an additional revenue stream, and the company expects to select a strategic partner on the project by the end of this year.
The company also announced that Executive Chair George Lucan intends to step down with effect from August 14. The search for his successor is currently in progress.
Shares in Angus Energy closed up 24% at 1.02 pence in London on Friday.
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