LONDON, UK: Angus Energy Plc (AIM:ANGS) has executed a share purchase agreement (“SPA”) to acquire the entire issued share capital of the Company’s current joint venture partner in the Saltfleetby Project, Saltfleetby Energy Limited, which owns a 49% working interest in the Project thereby giving Angus Energy a 100% interest in the Project.

To fund the Acquisition and other working capital requirements, the Company has concurrently arranged a direct subscription with affiliates of Aleph International Holdings (UK) Limited (“Aleph”) pursuant to which Aleph has subscribed for a total of 546,000,000 Ordinary Shares in the Company at a price of 1.09896011 pence, being £6,000,000 (Direct Subscription) split into an initial unconditional tranche of £3,000,000 and a second tranche of £3,000,000 conditional on Shareholder approval.

The Company has executed a share purchase agreement to acquire the entire issued share capital from Forum Energy Services Limited.  The total effective consideration payable pursuant to the SPA is the sum of £14,052,000.

Following completion of the Acquisition, the Group would own a 100% working interest in, and would continue to be operator of, the Saltfleetby Licence.

George Lucan, CEO, comments: “An opportunity has arisen to consolidate our partners’ 49% holding in the Saltfleetby asset for up to £14.052 million which represents a significant discount to the October 2021 P90 valuation of our own 51% interest at £25.4 million. 

That October 2021 CPR used an average price per therm for gas of under 70 pence over the  entire life of the field whilst the Heren NBP forward price for gas is presently trading at a level which is over double that number out to 2025.  In that regard we should note that over 70% of overall field revenues are unhedged.

Equally important to the Company’s long-term future is to attract the support of a strategic investors in the group led by Aleph, who have shown repeated commitment to Angus and have the resources and shared ambitions to grow Angus’s production in hydrocarbons and support its plans in relation to alternative and renewable energies.

Project progress at Saltfleetby is excellent with all major equipment on site, electrical and pipework tie-in underway, and select dry commissioning already begun.  With a conservative estimate for wet commissioning we are confident of being able to make initial nominations, or First Gas, toward the middle of June.  We aim to focus on new opportunities as soon as this milestone is achieved.”