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(Alliance News) - Angus Energy PLC on Friday said it has raised GBP1.5 million through a new convertible loan note facility to fund GBP2 million of liabilities arising from decommissioning of some wells and restoration of sites across the company's asset portfolio.
Angus Energy shares were down 10% at 1.03 pence each in London in afternoon trade.
The UK-focused oil & gas exploration company has entered into a convertible loan note facility with Riverfort Global Opportunities PCC Ltd
Angus Energy has drawn GBP1 million of the loan facility immediately and, of the net GBP897,500 proceeds, it will apply GBP650,000 directly to the abandonment reserve account for Brockham and Lidsey fields. Balance of GBP247,500 will be retained to explore third party credit insurance or other surety on the company's prospective interest in the Saltfleetby gas field and any other potential future assets.
The company is currently estimating GBP1.3 million liability towards decommissioning Saltfleetby field. The decommissioning of Balcombe, Lidsey and Brockham is expected to cost around GBP750,000.
Angus Energy said it is also exploring the acquisition of insurance against abandonment of wells as an alternative to long term cash reserving due to the very low interest rate environment.
By Tapan Panchal; tapanpanchal@alliancenews.com
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