TIDMANGS
RNS Number : 5354D
Angus Energy PLC
29 June 2021
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) 596/2014 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. . IN ADDITION,
MARKET SOUNDINGS (AS DEFINED IN MAR) WERE TAKEN IN RESPECT OF THE
MATTERS CONTAINED IN THIS ANNOUNCEMENT, WITH THE RESULT THAT
CERTAIN PERSONS BECAME AWARE OF SUCH INSIDE INFORMATION AS
PERMITTED BY MAR. THAT INSIDE INFORMATION IS SET OUT IN THIS
ANNOUNCEMENT AND HAS BEEN DISCLOSED AS SOON AS POSSIBLE IN
ACCORDANCE WITH PARAGRAPH 7 OF ARTICLE 17 OF MAR. UPON THE
PUBLICATION OF THIS ANNOUNCEMENT, THE INSIDE INFORMATION IS NOW
CONSIDERED TO BE IN THE PUBLIC DOMAIN AND SUCH PERSONS SHALL
THEREFORE CEASE TO BE IN POSSESSION OF INSIDE INFORMATION IN
RELATION TO THE COMPANY AND ITS SECURITIES
Angus Energy plc
("Angus Energy", "Angus" or the "Company")
Interim Accounts for the six months ended 31 March 2021
Angus Energy is pleased to announce its interim accounts for the
six months ended 31 March 2021 as set out below. A copy of the
Interims is available on the Company's website
www.angusenergy.co.uk
.
Enquiries:
Angus Energy Plc www.angusenergy.co.uk
George Lucan Tel: +44 (0) 208 899 6380
Beaumont Cornish (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) 113 394 6600
Flagstaff PR/IR angus@flagstaffcomms.com
Tim Thompson Tel: +44 (0) 207 129 1474
Fergus Mellon
Aleph Commodities info@alephcommodities.com
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 onshore UK
diversified clean energy and energy infrastructure company. Angus
Energy has a 51% 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).
Chairman's Statement
Dear Shareholders,
I am pleased to share with you the interim results for the six
months ended 31 March 2021.
Operational Highlights
Saltfleetby
The GBP12 million facility for the re-development of Saltfleetby
has been signed, the Conditions Precedents have been fulfilled and
the Group has already drawn down GBP5.84m. With the funding secured
we remain on track to deliver first gas as previously announced. By
making the full GBP12 million facility available immediately, Angus
is able to bring forward plans for the side-track well, which would
be fully funded from the facility, and increase production to the
plateau rate sooner than expected.
Angus has initiated the following activities to implement its
timeline to first gas by the end of 2021:
-- Two gas compressors packages are currently being designed by
specialist fabricators in Kent. Each unit is rated at 5 MMscf/d
each with Caterpillar gas engines and Ariel reciprocating
compressor sections. The engines and compressor ends have been
identified and secured for the project. Delivery to site of the
first pre-fabricated unit will be in October.
-- A condensate stabilisation system is being designed by a Hull
based engineering group with extensive experience supporting gas
production operations in the region. Local UK fabricators have been
contacted and build slots identified to allow for equipment
manufacture to fit the project schedule. This includes associated
options for the Joules-Thompson dew pointing device and a desiccant
dehydration system.
-- Gas commercial sales meter and analyser skid incorporating
state-of-the-art Honeywell equipment is completely designed and
subsequently reviewed by the National Grid. The equipment is under
fabrication in the UK working towards delivery in mid-July.
-- Detailed design of the process facility continues with
Aberdeen based engineering house, Optimus. The current design in
progress will be iterated to include final equipment selections and
matured into the complete design package. Bulk materials will be
ordered based on the specifications developed in the detail design.
HSE and Regulatory review will be progressed.
-- Construction activities are planned over several months with
multiple local specialist contractors. On site operations will
commence in July with limited groundwork preparations on this
pre-developed site. In situ fabrication of flowlines will commence
in August and main production equipment will be connected as
individual skid packages arrive.
Geothermal
The Company engaged a third-party report from Soluzioni
Hydrocarburi S.A. on the potential to repurpose two wells at the
Saltfleetby Gas Field, SF05 and SF08, for a closed loop system of
heat recovery by producing, and reinjecting, water from the
Sherwood Sandstone water bearing layer. The result of the study
yielded a potential thermal power output for the doublet of between
1.34MW and 6.98 MW which could be used to power a portion of the
site for the next decade. Away from Saltfleetby, a further
potential large scale geothermal project is under study. The
proposed scheme, located in an area of high geothermal gradient,
would be designed to achieve significant commercial power
generation. Current projects in the area have de-risked some
aspects of this technology and this project would seek to build on
that experience to scale up to a full power generation project.
Lidsey
The cCompany completed the reprocessing and reinterpreting of
the Lidsey seismic data. One of the conclusions of the work is that
previous seismic mapping both underestimated the aerial extent of
the reservoir and most importantly its shape. Because of which, the
presentation addresses the likelihood that both wells X1 and X2
have been addressing the flank or edge of the structure rather than
its crest. The Company is in the process of acquiring a new line of
seismic data and reprocess the existing seismic lines. Angus will
reinterpret and remap the field using the new data with the aim of
identifying a new drilling target.
Brockham
We have submitted a variation application to the Environment
Agency (EA) which includes a revised Hydrogeological Risk
Assessment regarding the use of one of the Brockham wells for water
injection. This substantial document has been prepared following
consultation with the EA and several specialists. Water injection
for pressure support is the most important means of enhancing the
recovery of oil from a reservoir and a successful scheme would
ensure a life for the Brockham Field on into the future. This is
currently under review with the Environment Agency. The Company has
also executed a Sale & Purchase Agreement for the purchase of
Doriemus plc's 10% and Alba Mineral Resources Plc 5% interest in
the Brockham PL235 Licence, thereby increasing the Company's
interest from 65% to 80%.
Balcombe
Despite the West Sussex County Council Planning Officer's
decision to recommend approval of the Company's application for a
one year extended well test at the Company's oilfield site at
Balcombe the West Sussex County Council's Planning Committee has
rejected the Company's planning application for an Extended Well
Test. The Company is presently evaluating all of the options
available with its partners.
Holmwood
UKOG Plc, the operator of PEDL 143 Licence (Holmwood/A24
Prospect) in which Angus had an interest of 12.5%, announced that
"a detailed study examining the viability of drilling the A24
(formerly Holmwood) Portland prospect's centre from selected sites
outside the Surrey Hills Area of Outstanding Natural Beauty, each
over 3 km from the target, concludes that the required long-
reach/shallow target-depth wells are neither technically viable or
economically feasible. Consequently, UKOG and its partners have now
relinquished their interests in the licence. It remains a great
disappointment to the Company that the licence's former operator,
Europa Oil and Gas, whilst in possession of planning consent,
failed to drill the prospect from the Holmwood site, around 1 km
from the target." This was a decision supported by the Company.
Financial Highlights
On 9 November 2020, the Company issued 9,678,945 shares at a
price 0.6p for the final conversion of GBP58,335 loan of the
Riverfort agreement dated 18 October 2019 regarding potential
decommissioning liabilities and associated funding.
On 16 December 2020, the Company issued 41,664,999 shares at a
price 0.6p with WH Ireland for general working capital for the
Company's ongoing activities.
On 26 January 2021, the Company issued 150,000,000 shares at a
price 0.1p with WH Ireland to advance the Company's current assets
and for general working capital. The Placing Shares were also
accompanied by the issue of one warrant to subscribe for one
ordinary share in the Company for each Placing Share (the "Placing
Warrants"). When issued, the Placing Warrants will be exercisable
at any time, for a period of 2 years, from the date of admission of
the Further Placing Shares at the following exercise prices: 50% at
1.2p; 25% at 1.35p and 25% at 1.5p.
On 9 April 2021, the Group issued 15,000,000 Ordinary shares at
a price 0.1p with WH Ireland pursuant to the further placing along
the announced-on 1 February 2021. The Further Placing Shares were
also accompanied by the issue of one warrant to subscribe for one
ordinary share in the Company for each Further Placing Share (the
"Further Placing Warrants"). When issued, the Further Placing
Warrants will be exercisable at any time, for a period of 2 years,
from the date of admission of the Further Placing Shares at the
following exercise prices: 50% at 1.2p; 25% at 1.35p and 25% at
1.5p.
On 13 May 2021, the Group signed the Loan Facility, conditional
only on the setting of the hedge, regulatory approval of the
royalty of the Oil and Gas Authority between Angus Energy and
Saltfleetby Energy Limited and Mercuria Energy Trading Limited and
Aleph Saltfleetby Limited as the co-Lender. The term of the Loan
Facility provides for a four year amortisation loan facility of up
to GBP12 million with a 12% margin over LIBOR, a 3% commitment fee
payable out of the facility, a share granted of 30 million shares
in Angus, issued over the life of the facility and an override of
8% of gross revenue following the repayment of the facility.
On 3 June 2021, the Group announced that the Conditions
Precedents to drawdown had been met, the full GBP12 million
facility required for the re-development of the Saltfleetby Gas
Field and the drilling of the side-track well is now fully
available. GBP5.84 million has currently been drawn down with the
balance to be drawn over the coming weeks against invoices in line
with the Field Development Plan and the Plans for the acceleration
of production through the fast-tracking of the side-track well.
Simultaneous with drawdown, the Company had hedged approximately
70% of the Company's and its partners' share of future gas sales,
estimated under a conservative projection, for three years
beginning in July 2022, providing Angus with downside revenue
protection, all the while allowing the Company to capture upside in
the event of higher gas prices. The average achieved price under
the Hedge, including all fees, costs and charges was 43 pence per
therm.
As previously advised, the Lenders are being granted 30 million
ordinary shares over the life of the facility in lieu of a cash
facility fee, of which 15,000,000 (the "Lender Shares") was issued
on 03 June 2021 and 5 million at each anniversary for three years
thereafter. In addition, and in order to satisfy certain existing
outstanding professional fees, as well as commission payable in
respect of the Funding Agreement, the Company has agreed to make
certain payments in Ordinary Shares (the "Adviser Shares"). Thus,
the Company has also issued 20,000,000 ordinary shares in
negotiated settlement of a proportion of those commissions and fees
otherwise payable. The remainder of the fees will be settled in
cash and/ or shares, such final amounts being agreed and to
be updated should further share issues be agreed. This being a
debt funding, no amounts were due to the Company's Nomad or Broker.
The average price per share deemed paid in respect of the Lender
and Adviser Shares is 0.9429 pence.
As at 31 March 2021 the Group had cash of GBP591,000.
As at 31 March 2021 the Group had net current assets of
GBP1,351,000.
Outlook
With the Saltfleetby project now fully funded and oil and gas
prices recovering from their lows of last year, we look forward to
first gas in 2021. As we work hard to achieve this, we remain
focused on delivering value from all the assets in our portfolio,
which includes our Geothermal project. Together with our funding
partners we are well placed to take the company forward and achieve
our objectives.
Lord Clanwilliam
Non-Executive Chairman
29 June 2021
ANGUS ENERGY PLC
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the period ended 31 March 2021
Six months Six months
31 March 31 March
2021 2020
Note Unaudited Unaudited
GBP'000 GBP'000
Revenue 4 - 68
Cost of sales (166) (283)
----------- -----------
Gross profit/(loss) (166) (215)
Administrative expenses (1,196) (1,389)
Share based payment charge (81) -
Operating loss (1,443) (1,604)
Finance cost (36) -
Loss on ordinary activities before
taxation (1,479) (1,604)
Income tax expense - -
----------- -----------
Loss for the period attributable to
the
equity holder of the Company (1,479) (1,604)
=========== ===========
Loss per share (EPS): GBP GBP
Basic and diluted (whole GBP's) 10 (0.002) (0.003)
=========== ===========
ANGUS ENERGY PLC
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 31 March 2021
As at As at As at
31 March 31 March 30 September
2021 2020 2020
Unaudited Unaudited Audited
Note GBP'000 GBP'000 GBP'000
Non-current assets
Property, plant and equipment 5 11 14 11
Exploration and evaluation
assets 6 9,499 6,366 8,183
Oil production assets 7 6,493 6,407 6,406
Leases 23 - 35
16,026 12,787 14,635
----------- ----------- --------------
Current assets
Trade and other receivables 8 760 336 609
Cash and bank balances 591 2,591 1,852
----------- ----------- --------------
1,351 2,927 2,461
----------- ----------- --------------
Total Assets 17,377 15,714 17,096
=========== =========== ==============
Equity
Share capital 11 1,833 1,208 1,430
Share premium 11 23,272 21,273 21,982
Merger reserve (200) (200) (200)
Loan Note reserve 106 - 106
Accumulated loss (13,445) (11,165) (12,047)
----------- ----------- --------------
Total Equity 11,566 11,116 11,271
=========== =========== ==============
Current liabilities
Trade and other payables 9 1,576 1,589 1,488
-----------
Non-current liabilities
Provisions 3,007 3,009 3,007
Trade and other payables 1,228 - 1,330
----------- ----------- --------------
Total non-current liabilities 4,235 3,009 4.337
----------- ----------- --------------
Total liabilities 5,811 4,598 5,825
=========== =========== ==============
Total Equity and Liabilities 17,377 15,714 17,096
=========== =========== ==============
ANGUS ENERGY PLC
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the period ended 31 March 2021
Share Merger Lone Note Retained Total
Capital Share premium Reserve reserve Earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 October 2019 1,082 21,117 (200) - (9,561) 12,438
-------- ------------- -------- ----------- ---------- -------
Loss for the period - - - - (1,604) (1,604)
Total comprehensive income
for the period - - - - (1,604) (1,604)
-------- ------------- -------- ----------- ---------- -------
Transaction with owner
Issue of shares 126 273 - - - 399
Less: issuance cost - (117) - - - (117)
Granted of warrants - - - - - -
-------- ------------- -------- ----------- ---------- -------
Balance at 31 March 2020 1,208 21,273 (200) (11,165) 11,116
-------- ------------- -------- ----------- ---------- -------
Balance at 1 October 2019 1,082 21,117 (200) - (9,561) 12,438
Loss for the year - - - - (2,516) (2,516)
Total comprehensive income
for the year - - - - (2,516) (2,516)
-------- ------------- -------- ----------- ---------- -------
Transaction with owners:
Issue of shares 348 1,051 - - 1.399
Less: issuance cost - (186) - - (186)
Issue of convertible loan
note 106 106
Granted of share option - - - 30 30
-------- ------------- -------- ----------- ---------- -------
Balance at 30 September
2020 1,430 21,982 (200) 106 (12,047) 11,271
-------- ------------- -------- ----------- ---------- -------
Loss for the period - - - - (1,479) (1,479)
Total comprehensive income
for the period - - - - (1,479) (1,479)
-------- ------------- -------- ----------- ---------- -------
Transaction with owners:
Issue of placing shares 403 1,405 - - - 1,809
Less: issuance costs - (115) - - - (115)
Granted of options and
warrants - - - - 81 81
Balance at 31 March 2021 1,833 23,272 (200) 106 (13,445) 11,566
======== ============= ======== =========== ========== =======
ANGUS ENERGY PLC
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
For the period ended 31 March 2021
Six months Six months
31 March 31 March
2020
2021 Unaudited Unaudited
GBP'000 GBP'000
Cash flow from operating activities
Loss before taxation (1,479) (1,604)
Adjustment for:
Interest payable 36
Share based payment charge 81 -
Depreciation and amortisation charges 3 12
Operating cash flows before movements
in working capital (1,359) (1,592)
Increase/ (decrease) in trade and other
receivables (151) 457
Increase in trade and other payables (27) 559
Lease principal repayment (12) -
Cash used in operating activities (1,549) (576)
Income tax paid - -
--------------- -----------
Net cash used in operating activities (1,549) (576)
--------------- -----------
Cash flows from investing activities
Decommissioning cost - (43)
Acquisition of exploration and evaluation
assets (1,316) (488)
Acquisition of fixed assets and oil
production assets (89) (3)
Net cash used in investing activities (1,405) (534)
--------------- -----------
Cash flows from financing activities
Net proceeds from issue of share capital 1,693 282
Net cash generated from financing activities 1,693 282
--------------- -----------
Net increase in cash & cash equivalents (1,261) (828)
Cash and equivalent at beginning of
year 1,852 3,419
--------------- -----------
Cash and equivalent at end of year 591 2,591
=============== ===========
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 United Kingdom Investment holding
Limited company
ii) Angus Energy Weald Basin United Kingdom Investment holding
No. 1 Limited company
iii) Angus Energy Weald Basin United Kingdom Investment holding
No. 2 Limited company
iv) Angus Energy Weald Basin United Kingdom Oil & Gas extraction
No. 3 Limited for distribution to
third parties
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 (GBP'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 2021 and 31 March 2020 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 2019, which
have been prepared in accordance with International Financial
Reporting Standards as adopted by the European Union ("IFRS"). 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 2020 is available on the Company's
website.
The interim report for the six months ended 31 March 2021 was
approved by the Directors on 29 June 2021.
Going Concern
The COVID-19 pandemic has not had a significant immediate impact
on the company's operations. The Oil and Gas industry has been
deemed critical and thus we have been allowed to continue
operations. The Directors are aware that if the current situation
becomes prolonged then this may change. The consolidated financial
statements have been prepared on a going concern basis.
In response to this extraordinary period, the Directors have
taken the prudent decision to introduce cost saving measures where
possible in order to preserve working capital. 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.
As at 31 March 2021, the group had GBP591,000 of available cash.
Subsequent to the period end, the Group closed the Satlfleetby
Financing Facility and has drawn down an initial amount of GBP5.84
million. Having regard to the above, the directors believe it
appropriate to adopt the going concern basis of accounting in
preparing the financial statements.
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 if 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 2021
were approximately GBP9.499m and GBP6.493m 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 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 31 March
2021 2020
GBP'000 GBP'000
Sale of oil - 68
All the non-current assets of the Group are located in the
United Kingdom.
All revenue arising from sale of oil is derived from a single
customer.
5. PROPERTY, PLANT AND Equipment
During the period, the Group incurred GBP3,000.00 additions to
property, plant and equipment (1H 2020: GBP3,000). The depreciation
charge for the period on the Group's property, plant and equipment
was GBP3,195 (1H 2020: GBP3,000).
6. EXPLORATion ANd evALUaTion ASSETS
During 2019, the Group acquired a 51% interest of the
Saltfleetby Gas Field (PEDL005) from Saltfleetby Energy Limited. An
initial payment of GBP2.5m was paid to Angus in connection with the
field abandonment cost.
Total
GBP'000
Cost or valuation
At 31 March 2020 6,366
Additions 1,817
-------------------------------------
At 30 September 2020 8,183
Additions 1,316
-------------------------------------
At 31 March 2021 9,499
-------------------------------------
Amortisation
At 30 September 2020 -
Charge for the period -
-------------------------------------
At 31 March 2021 -
-------------------------------------
Net book value
At 30 September 2020 8,183
==============================
At 31 March 2021 9,499
==============================
At 31 March 2020 6,366
==============================
7. OIL PRODUCTION ASSETS
Total
GBP'000
Cost or valuation
At 30 September 2019 7,373
Additions -
-------------------------------------
At 31 March 2020 7,373
Additions -
-------------------------------------
At 30 September 2020 7,373
Additions 86
-------------------------------------
At 31 March 2021 7,459
-------------------------------------
Depreciation and impairment
At 30 September 2019 957
Charge for the period 9
-------------------------------------
At 31 March 2020 966
Depreciation for the period -
Impairment for the period -
-------------------------------------
At 30 September 2020 966
Charge for the period -
-------------------------------------
At 31 March 2021 966
-------------------------------------
Net book value
At 30 September 2020 6,407
==============================
At 31 March 2020 6,493
==============================
At 31 March 2021 6,407
==============================
Depreciation of oil production assets is included in cost of
sales in the consolidated statement of comprehensive income.
As at 31 March 2021, the Group retained 80% interest in Lidsey
field and 75% in Brockham field and is still the operator of both
fields.
8. TRADE AND OTHER RECEIVABLES
31 March 31 March 30 September
2021 2020 2020
GBP'000 GBP'000 GBP'000
VAT recoverable 87 127 201
Amount due from
farmees 522 98 272
Other
receivables 151 111 136
------------------------------- ----------------------------- -----------------------------
760 336 609
------------------------------- ----------------------------- -----------------------------
The carrying amount of trade and other receivables approximates
to their fair value.
9. TRADE AND OTHER PAYABLES
31 March 31 March 30 September
2021 2020 2020
GBP'000 GBP'000 GBP'000
Trade payables 1,263 733 1,168
Other taxation 139 133 170
Accruals 137 - 60
Other payables 13 723 66
Lease Liability 24 - 24
------------------------------- ----------------------------- -----------------------------
1,576 1,589 1,488
------------------------------- ----------------------------- -----------------------------
10. EARNINGS PER SHARE
Basic EPS amounts are calculated by dividing the loss 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 loss 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 31 March
2021 2020
Net loss attributable to equity holders
of the Group (1,479,000) (1,604,000)
Weighted average number of ordinary
shares 757,730,962 549,004,028
Basic and diluted (loss) per share (0.002) (0.003)
The diluted loss per share was not applicable as there were no
dilutive potential ordinary shares outstanding at the end of the
reporting period.
11. Share Capital AND RESERVE
Number Ordinary Share Premium
of shares shares GBP'000
GBP'000
Issued:
As at 30 September 2019 540,828,007 1,082 21,117
12 December 2019 - issue of shares 13,766,520 28 72
18 February 2020- issue of shares 17,319,016 35 65
5 March 2020 - issue of shares 32,133,676 63 136
Less: issuance cost (117)
As at 31 March 2020 604,047,219 1,208 21,273
------------ --------- --------------
29 September 2020- issue of shares 111,111,105 222 778
Less: Issuance of costs (69)
------------ --------- --------------
As at 30 September 2020 715,158,324 1,430 21,982
9 November 2020 - issue of shares 9,678,945 20 38
16 December 2020- issue of shares 41,664,999 83 167
26 January 2021 - issue of shares 150,000,000 300 1,200
Less: Issuance of cost (115)
------------ --------- --------------
As at 31 March 2020 916,502,268 1,833 23,272
------------ --------- --------------
On 9 November 2020, the Company issued 9,678,945 shares at a
price 0.6p for the final conversion of GBP58,335 loan of the
Riverfort agreement dated 18 October 2019 regarding potential
decommissioning liabilities and associated funding.
On 16 December 2020, the Company issued 41,664,999 shares at a
price 0.6p with WH Ireland for general working capital for the
Company's ongoing activities.
On 26 January 2021, the Company issued 150,000,000 shares at a
price 0.1p with WH Ireland to advance the Company's current assets
and for general working capital.
The ordinary shares have a par value of GBP0.002 per share and
are fully paid. These shares carry no right to fixed income and
have no preferences or restrictions attached to them.
12. SHARE OPTIONS AND WARRANTS
On 13 October 2016, the Group implemented an Enterprise
Management Incentive Scheme followed by a
NED and Consultant Share Option Scheme (The Scheme).
At 30 September 2020, the Group had 53,418,304 share options and
7,469,914 warrants outstanding in respect of ordinary shares.
During the period ended 31 March 2021 the Group has issued
29,000,000 options and 150,000,000 warrants. The outstanding and
exercisable of share options and warrants was 81,450,892 with a
weighted average price of GBP0.037 at 31 March 2021.
The inputs into the model were as follows:
Options Warrants Warrants Warrants
Stock price 0.78p 0.78p 0.78p 0.78p
Exercise price 1.5p 1.2p 1.35p 1.5p
Interest rate 0.5% 0.5% 0.5% 0.5%
Volatility 30% 30% 30% 30%
Time to maturity 10 years 2 years 2 years 2 years
13. SEASONALITY OF GROUP BUSINESS
T here are no seasonal factors that materially affect the
operations of any company in the Group.
14. PROVISIONS FOR OTHER LIABILITIES AND CHANGES
31 March 31 March 30 September
2021 2020 2020
GBP'000 GBP'000 GBP'000
Abandonment
costs 3,007 3,009 3,007
--------------------------------------- --------------------------------------- ---------------------------------------
The Group makes full provision for the future costs of
decommissioning oil production facilities and pipelines on the
installation of those facilities. The amount 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 9 April 2021, the Group issued 15,000,000 Ordinary shares at
a price 0.1p with WH Ireland pursuant to the further placing along
the announced-on 1 February 2021. The Further Placing Shares were
also accompanied by the issue of one warrant to subscribe for one
ordinary share in the Company for each Further Placing Share (the
"Further Placing Warrants"). When issued, the Further Placing
Warrants will be exercisable at any time, for a period of 2 years,
from the date of admission of the Further Placing Shares at the
following exercise prices: 50% at 1.2p; 25% at 1.35p and 25% at
1.5p.
On 17 May 2021, the Group signed the Loan Facility, conditional
only on the setting of the hedge, regulatory approval of the
royalty of the Oil and Gas Authority between Angus Energy and
Saltfleetby Energy Limited and Mercuria Energy Trading Limited and
Aleph Saltfleetby Limited as the co-Lender. The term of the Loan
Facility provides for a four year amortisation loan facility of up
to GBP12 million with a 12% margin over LIBOR, a 3% commitment fee
payable out of the facility, a share granted of 30 million shares
in Angus, issued over the life of the facility and an override of
8% of gross revenue following the repayment of the facility.
On 3 June 2021, the Group announced that the Conditions
Precedents to drawdown had been met, the full GBP12 million
facility required for the re-development of the Saltfleetby Gas
Field and the drilling of the side-track well is now fully
available. GBP5.84 million has currently been drawn down with the
balance to be drawn over the coming weeks against invoices in line
with the Field Development Plan and the Plans for the acceleration
of production through the fast-tracking of the side-track well.
Simultaneous with drawdown, the Company had hedged approximately
70% of the Company's and its partners' share of future gas sales,
estimated under a conservative projection, for three years
beginning in July 2022, providing Angus with downside revenue
protection, all the while allowing the Company to capture upside in
the event of higher gas prices. The average achieved price under
the Hedge, including all fees, costs and charges was 43 pence per
therm.
As previously advised, the Lenders are being granted 30 million
ordinary shares over the life of the facility in lieu of a cash
facility fee, of which 15,000,000 (the "Lender Shares") was issued
on 03 June 2021 and 5 million at each anniversary for three years
thereafter. In addition, and in order to satisfy certain existing
outstanding professional fees, as well as commission payable in
respect of the Funding Agreement, the Company has agreed to make
certain payments in Ordinary Shares (the "Adviser Shares"). Thus,
the Company also issued 20,000,000 ordinary shares in negotiated
settlement of a proportion of those commissions and fees otherwise
payable. The remainder of the fees will be settled in cash and/ or
shares, such final amounts being agreed and to be updated should
further share issues be agreed. This being a debt funding, no
amounts were due to the Company's Nomad or Broker. The average
price per share deemed paid in respect of the Lender and Adviser
Shares is 0.9429 pence.
On 03 June 2021, announced the acquisition of Alba Mineral
Resources plc's 5% interest in the Brockham Field. The net
consideration after settlement of outstanding amounts and a
contribution toward eventual abandonment costs involves a payment
by Alba to Angus of GBP38,400, settled as to GBP6,400 in cash and
GBP32,000 by the issue of 12,407,910 shares in Alba at the 10 day
VWAP of 0.2579p per share representing approximately 0.20% of the
share capital of Alba.
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END
IR DKCBQQBKDKAB
(END) Dow Jones Newswires
June 29, 2021 10:44 ET (14:44 GMT)
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