(Alliance News) - Angus Energy PLC on Monday said it has received a conditional mandate letter for between GBP8 million and GBP9 million towards the proposed GBP12 million Saltfleetby gas field loan facility from an unnamed "major" multi-national institution.
The UK-focused onshore oil and gas development company said this mandate commitment is conditional depending on the participation of other institutions and investors for the remaining balance of GBP3 million to GBP4 million.
In addition, Angus Energy said a group of investors led by Aleph Energy Ltd has made commitments of GBP11 million for the same loan facility, and also expressed a "strong" interest in funding its planned geothermal and solar projects. At this time, Angus Energy has not stated where the additional GBP1 million needed for the facility would come from.
With its partner Saltfleetby Energy Ltd, Angus Energy entered into a memorandum of understanding with Aleph Energy and Aleph Commodities Ltd in November detailing non-binding heads of terms to provide up to GBP12 million towards the finance facility to develop the Saltfleetby gas field. Angus operates Saltfleetby and holds a 51% working interest, with Saltfleetby Energy holding the remaining 49%.
The mandate includes a 45-day exclusivity period until April 5, however all parties intend to conclude legal documentation, perfect security and satisfy conditions precedent during March.
Angus said a further condition of the mandate is that the debt provider will also provide hedging services on market terms for no greater than 70% of a low case production estimate during the four-year term of the loan facility.
"We are very pleased to have attracted the support of a group of institutional investors and family offices some of whom have also expressed genuine interest in funding Angus's pipeline of energy transition projects. We look forward to closing this loan facility within a realistic timeframe and thank shareholders for their continued support in developing our portfolio of assets in line with the highest environmental, social and corporate governance standards," said Chief Executive George Lucan.
Additionally, Angus Energy said West Sussex County Council has recommended approval for a one-year extended well test at its oil field in Balcombe on the PEDL244 licence. The final decision will be made during a planning committee meeting on March 2.
Shares in Angus Energy were down 5.9% at 0.96 pence in London on Monday morning.
By Zoe Wickens; zoewickens@alliancenews.com
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Angus Energy (ANGS)