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Overriding Royalty Interest Payment and TVR
ORRI Payment
As previously announced on 22 February 2024, Angus Energy will settle its March 2024 royalty or ORRI ("Overriding Royalty Interest") payments on Saltfleetby Field production in shares.
The Company will now issue a total of 27,448,470 Ordinary Shares to the ORRI holders (the "ORRI Shares") at a price of 0.3544 pence each, being a 15% discount to the 30-day VWAP as at 26 April 2024, representing a value of £97,277.07 ...
Dealings in the ORRI Shares will commence at 8.00 a.m. on 15 April 2024 ("Admission").
Don't they mean 15th May 2024 - another RNS ltr
GLA SR
I thin they're playing catch-up on their required RNSes.
Their ORRI payment (8% of gross production revenues from existing SFBY wells) ) is due every month in perpetuity (or at least for as long as ANGS continues to produce out of the existing wells). Presumably if they decide to settle April 24's ORRI royalty in shares as well, we'll very shortly get a very similar RNS relating to that transaction.
And so on... and so on....
More dilution…..speaks volumes about cash flow.
Chickster: I believe HITS is correct and that this is a monthly payment. If Angus continue to pay it in shares, and assuming similar volumes and price of gas, you can therefore assume that there will be a daily excess supply of shares from this source at the rate of about 1.25mm. shares per day, which is quite a lot for a weak market to absorb, innit? I can’t imagine Mercuria wanting to hang onto Angus shares for long. If the financial position here continues to deteriorate, the share price is likely to fall further, which will result 8n an even greater supply of shares from the royalty. A few of us have been warning about this for quite a long time.
Yes, it has been an ermmm "interesting" journey, to see how they simply undermined this asset from the get go !!
On reality the ONLY (caps for Cinder's) people who made real money out of this are not doing anything for it, GL, PF, the royalties mob and Trafigura...
RH simply just needs to keep it ticking over and THEY will ALL be happy... folk like MildTiger etc can fight over the scraps..
Quite correct, Oofy.
One would have thought that ANGS was reasonably flush with cash at the moment, following the recent global refinancing package... but apparently not sufficiently so to meet this first of an endless series of c. £100k monthly debts that it's known about for months in cold hard readies.
Also not helping confidence is that, although we all know the approximate amount of those monthly liabilities (8% of GROSS generated field revenues from the existing SFBY wells), we've not been told a word about Trafigura's agreed offtake pricing under the replacement hedge agreement. How typically non-transparent.
HITS: I believe the offtake agreement and the hedges are separate, aren’t they? The difference between the hedge agreements, to the extent that we know anything, is that, in contrast to the Mercuria hedges, which were in place for a limited time, the new ones are permanent, as I understand it. I wonder if there was any price to pay to end the agreement with Shell. And yes, the terms neither of the offtake agreement nor the hedges have been divulged. It was - and continues to be - a wonderful deal that Mercuria negotiated. Angus has been a source of riches for Mr. Forrest and for the commodity traders while the poor shareholders have stumped up at every turn and been rewarded with a share price that keeps plumbing new depths.
And lets not forget that by not paying in cash, it incurs issue of shares at 15% discount to the 30 day VWAP, just to insult Retail a little more...
27.4m shares = 0.62% of the increased share capital of 4,421.9m shares
""27.4m shares = 0.62% of the increased share capital of 4,421.9m shares ""
Yeah, not a big deal as a one off, but this is going to be MONTHLY (Caps for Cinder's)
It has been agreed with the royalty holders that until June 2025, the royalty will be settled in cash or through the issue of new ordinary shares in the Company (in the case of the Aleph entities, this is subject to shareholder approval), issued in April (in respect of March) and then quarterly at a 15% discount to the 30 Day Volume Weighted Average Price, at the election of the Company. On present production and gas price assumptions, this will equal approximately £300,000 per calendar quarter for each quarter until and including the quarter ending 30 June 2025, or £1.5 million in total over 18 months (the "Equity Royalty Payments"). Thereafter royalties will be paid in cash on net gas sales revenue, not taking account of any new hedges. (RNS of 22/02/24)
""27.4m shares = 0.62% of the increased share capital of 4,421.9m shares ""
So basically, if they are all converted to shares every month for the next 18 months, then they will have between a 10-12% holding for nowt !!! EASY MONEYYYYYYY !!!
We simply don't know whether they will be paid in cash or in shares, that is at the election of the company". They have been paid in shares this time.
And one cannot assume the share price will remain the same for the next many months.
Ocelot: thanks for the correction re quarterly payment of the royalty from end-March 2024. Apologies to chickster and to you for my mistake in this. So there will be a cash outflow, or shares in lieu equivalent, of c. £300,000 at the end of June in respect of the royalty
"And one cannot assume the share price will remain the same for the next many months."
Very true. It's dropped 33% since April 15th.