Malcy Comment22 Feb 2021 16:39
Angus Energy
Angus Energy plc has announced, further to the RNS of 19 January 2021 that the Company has received a “best efforts” expression of commitment in the form of a conditional Mandate Letter, for between £8 and £9 million toward the proposed £12 million Saltfleetby Equipment Finance and Field Development Loan Facility from a major multi-national institution. The Mandate commitment is conditional also on the participation of other institutions and investors for the balance of £3 to £4 million.
The Company has also been informed of indications and soft commitments for the same Loan Facility of approximately £11 million from an identified group of investors led by Aleph Energy (“Aleph”). In each instance the terms of the Loan Facility are substantially unchanged from those disclosed in the RNS of 19 January 2021.
Additionally, the group of investors has expressed a strong interest in funding Angus’s planned geothermal and solar projects, in continued support of the Company’s Energy Transition plans and revenue diversification.
The Mandate includes a 45-day exclusivity period for this joint financing effort until 5 April although it is the stated intent of all parties to conclude legal documentation, perfect security and satisfy conditions precedent, including, inter alia, regulatory approval of the Field Development Plan by the OGA, consequential amendments to the Farm-out Agreement, the Joint Operating Agreement and the existing Knowe Properties Loan Note, with a view to making disbursements during the month of March.
A further condition of the Mandate is that the debt provider will also provide hedging services on market terms for a proportion (no greater than 70%) of a low case production estimate during the four year life of the Loan Facility.
It should be emphasised that the Mandate Letter is not a firm offer of funding and completion of the Loan funding remains subject to the satisfaction of those various conditions that currently remain outstanding.
George Lucan, Angus CEO, comments: “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 ESG standards. We will be following this announcement with updates on our other assets over the coming days.”
I’m not surprised to see that George Lucas is ‘very pleased’ with regard to this news about the loan funding, it is massively oversubscribed if anything like all these interested parties stay involved and he gets a potential funder for the geothermal projects as well as someone to provide hedging services. The share price has yet to realise that this is good pretty much whatever the terms.
Sign In
Follow the stocks
