Malcy Blog Comment24 Jul 2023 11:19
Angus Energy
Angus, late on Friday announced a Financing & Corporate Update as well as an Issue of Equity and TVR.
· Average Production of 80,000 therms per day in June and 92,000 therms per day in July to date.
· Gas revenue of £1.735 million in June 2023.
· Hedged volumes now 50,000 therms per day to July 2024.
· Future Hedges partially unwound to allow exposure to gas price increases
· £6m Bridge Facility signed and being drawn
· Existing £3m Bridge facility rolled
Production & Revenue Update
The Company averaged production of 80,000 therms per day in June and has averaged 92,000 therms per day in the first 18 days of July. As of 1st July, the daily hedged volume has reduced to 50,000 therms per day until July 2024 when it reduces further to 21,666 therms per day. As a result, Angus is now producing significantly above the hedged volumes and is benefiting from strong gas prices. It is anticipated that production will be maintained at 90-95,000 therms per day over the next quarter. With current prices and after hedges, the Company generated gas revenue of £1.735 million in June.
Partial Hedge Unwind
The Company believes that the winters 23/24 and 24/25 will present the possibility of price spikes as geopolitical tensions and the potential for cold snaps remain. As a consequence, the Company has reduced its future hedge exposure, taking advantage of the recent sell off in gas prices. As announced, the Company has unwound 50% of its hedge position in the second half of 2024 and the first half of 2025. Angus has agreed to settle the following volumes at the following fixed prices: in 3Q24, 1,840,000 therms at GBP1.226/therm; in 4Q24/1Q25, 3,640,000 therms at GBP1.37/therm; in 2Q25, 1,820,000 therms at GBP1.07/therm. This action will provide the Company with exposure to price upside during this period, while keeping 50% of current hedges in place. Settlement of these transactions will take place in the future in the normal way.
Signature of New Bridge
Angus is pleased to announce that, in line with the announcement of 14 July 2023, it has now closed the GBP 6 million junior debt facility (the “Bridge Facility”) with Aleph Finance Limited (“AFL”), an associate of the Company’s Substantial Shareholder Aleph Commodities Limited (“ACL”). The Bridge Facility has an initial term of three months, extendable, at the option of the Company, for a further 3-month period. Thereafter any roll is with mutual agreement. A roll fee of 3% applies. Interest on the Bridge Facility, which is payable quarterly, is capitalized on each 3-month period and added to loan balance. There is no exit fee. A 3% penalty fee applies should the Bridge Facility be repaid earlier than its stated maturity.
The Bridge Facility is priced at SONIA (Sterling Overnight Index Average) + 15% . The Company will also issue 300 million 3 year warrants to ACL (or associates or parties nominated by ACL) at a stri
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