Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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"If Angus use the gas wells for storage there shouldn't be any decommissioning costs."
Going into gas storage was what collapsed Infrastrata - they now own a shipyard in N Ireland
BV, you appear to have changed your position on Angus?
Me? After 5 years? annoyed yes, nervous no.
This funding issue is not resolved until funds drawdown begins or a firm date for it to begin is set.
The fact that the RNS said gas in Q4 means nothing, an earlier RNS said gas in Q4 last year! Or you forgotten that.
So, the gurus on this board can they agree that 6 weeks (end of June) is enough time to iron out the final conditions?
- The setting of the hedge,
- regulatory approval of the royalty arrangement by the Oil and Gas Authority (the "OGA") and
- a handful of administrative provisions
Is 6 weeks enough for the solicitors to close those conditions and firm the house purchase?
James.
The math has been largely done by OIL in the CPR and even at the P10 high its well below your figure. Are you suggesting OIL have got the figures wrong?
Angus have RNS’d the 30p Hedge figure and told the market that the terms are its largely unchanged.
https://www.angusenergy.co.uk/wp-content/uploads/2020/03/Reserves-Resources-Valuation-Report-Angus-Energy-Saltfleetby-Assets-Effective-Date-28th-February-2020-Report-Date-4th-March-2020.pdf
If Angus use the gas wells for storage there shouldn't be any decommissioning costs.
WG- Why don't you or someone do the full math on the gas. what's the revenue from all the gas from the stated gas production. 30 p is not yet confirmed. hedging may be at higher price. and you can then build in all the costs. i am sure, from the math i have, the value will exceed 45 million (angus share).
James the second
The 10mmcsf is based on P90 according to the RNS yesterday. That was the low projection in the COR which didn’t include this new£12 million loan.
The price of gas is a consideration but we have been told that a hedge of 30p a therm on 70% will be required by the lenders.
The pipeline isn’t done. According to the Annal accounts.
You should also consider the £12.8 million De-comm costs listed in SEL last accounts. The OGA will want to know that they are still catered for in any deal.
I see that some are suggesting that Angus may be liable for 51% of this figure.
Yanis, are you sure that AIM is right for you. My impression is that you are a nervous wreck or in too deep with your finances.
Yanis- concentrate on the maths. we are going for 10 mmcsf production by the year end. 51% belongs to us. What's the daily revenue on current prices.? Pipeline done. and there may be BIGGER gas reserves. Our confidence was well shaken by the delays in funding but we are where we are now and now very close to production.
The money will probably arrive sooner for OGA to see that work can be done and completed. I am expecting an update from the company soon. They should have the common sense telling us all what will happen when without any further slippages/potholes.
I think sooner rather than later.
Thanks guys … a walk in the park. So can we say funds drawdown at the very latest end of June? 6 weeks?
Relax, Yanis.
It's a walk in the park.
Think of it another way. You have a penalty to win the league. Up steps your all-time record goalscorer. Sergiooo....... Oh!
setting of the hedge is a few minutes job. just like buying/selling shares. open an account and deal. OGA approval should be pity quick too. its more of a formality rather than seeking permissions. admin provisions may be relating to hedging etc, such as who decides and manages the funds/disbursements. these are very basic and routine requirements and can be sorted in minutes ,literally. OGA will confirm royalties etc as per licence.
Think of another way. You got the mortgage and the solicitor has the funds to complete subject to title. Its a walk in the park.
High roller, “Commercial/financial uncertainties have been cleared”?
Any idea when the following will be concluded?
- The setting of the hedge,
- regulatory approval of the royalty arrangement by the Oil and Gas Authority (the "OGA") and
- a handful of administrative provisions
commercial/financial uncertainties have been cleared. Better late than never. its a steal at the current SP. the gas alone will justify a value of £50 million plus. Ignore the noise. I will be adding very soon.
Been active on this board since the Brockham RNS of 28/06/19.
In that time, ANGS has come a long way in terms of its business and its prospects.
Imho, it's just a matter of time before the share price begins to catch up with what has been achieved to date and to reflect the company's future prospects.
Obviously not a tool,tools are useful.
I may not be the sharpest but at least im not a tool.
It's always a tad dangerous to presume you're the sharpest knife in the cutlery drawer, nhawan....
The sheep haven't cotton on yet hence the muted sp response. I reckon alot of the uncertainty has gone though since we have got a financing deal in place rather than nothing at all like some were hoping for.
Market is cautious as needs 100%
This is 95% as they use the term only - as these matters are expected to complete/standard procedure - depends how you view the word only in this context:
"Angus Energy plc (AIM: ANGS) is pleased to announce that the Loan Facility, conditional only on the setting of the hedge, regulatory approval of the royalty arrangement by the Oil and Gas Authority (the "OGA") and a handful of administrative provisions, has now been signed between Angus and Saltfleetby Energy Limited"
Its just poor writing imo
what they could have said was :
"Angus Energy plc (AIM: ANGS) is pleased to announce that the Loan Facility, has now been signed between Angus and Saltfleetby Energy Limited"
This is a signed and legally binding agreement, which allows the project to progress to first gas within 2021.
As is standard with these credit arrangement , the mandatory administrative aspects have to be completed, which are fully expected to be agreed unequivocally within the next XX weeks.
These being the setting of the hedge, regulatory approval of the royalty arrangement by the Oil and Gas Authority (the "OGA") and a handful of minor administrative provisions.
ANGS are forging ahead in the full expectation of these matters being resolved shortly and expect no further material delay - the core financial approval and hence binding signature agreements to the loan has been actioned.
This represent a material advancement for the company, we look forward to completing the year as a producer."
Nomad would have approved that.
Total volume now 5.2 million in over 6 hours of trading … and the bid did not move from 0.8p in all this time.
The market simply does a not believe what Angus is saying anymore, which is understandable … but fecking annoying!
If it was any other company with a bit of reputation the SP would have at least bagged today.
Only when Angus delivers a firm RNS and a date set to start drawing funds will this move up.
We are back in the “Final Furlong” — when is the end?? Uncertainty & frustration continues.
It's hardly rocket science getting the big boys to show you how it's done, It's like asking mummy to take you to school holding your hand.
HITS, that is what concerns me too. Looks like there is still some way to go, the final furlong is stretched again.
Nice to have the update though but closure of the funding is still up in the air, conditional on
- The setting of the hedge,
- regulatory approval of the royalty arrangement by the Oil and Gas Authority (the "OGA") and
- a handful of administrative provisions
And no indication of when these are expected to be completed.
Fool me once, shame on you … fool me twice … shame on me - market response today.
Lol, I see the derampers changing the goalposts after being proven wrong about the financing.
Close your shorts before you lose them ;)
hits, action speaks louder than words, we need to see production income before any rerate.