Member Info for ocelot

From note 3.3 to the accounts:

... In making their overall assessment the Directors took into account the advanced stage of the
documentation in relation to the debt facility and the indicative commitments received to date. In respect of
Balcombe the Directors have considered the likelihood of a successful appeal. Although there will remain
material uncertainty until the funds have been drawn down, the Directors are confident in closing the facility
imminently.

From note 9:

The Group has incurred indefinitely available tax losses of £19,678,919 (2019: £18,533,000) to carry forward
against future taxable income of the subsidiaries in which the losses arose and they cannot be used to offset
taxable profits elsewhere in the Group...

No deferred tax asset was recognised in respect to these accumulated tax losses ...

At the total tax rate of 40%, tax losses of £19.7m are worth £7.9m if and when recovered. A large proportion of these losses are located in AEWB No.3 Limited and forecast to be recovered in the Saltfleetby CPR.

Spot gold is bouncing a bit, too: $1,715.12 + $31.58

A brief video update this morning:

https://www.youtube.com/watch?v=uVZ6J7b_5uM&ab_channel=AlbaMineralResources

This is to inform the board that I put balancedviewer on filter yesterday.

Yes, misplaced the decimal point!

According to the graph, looks as if it was in September 2019 that the price was last in that zone - 2020 was definitely not a good year for the share price.

We can say that given the sensitivity of the matter, if there were any significant road block then we would be under an obligation to inform the market immediately. (from an answer to an Investor Question asked 14/02/21)

So the funding deal is taking time to be concluded but remains on track.

Nice 20m trade at 1.291p.

from Angus's final results RNS this morning:

Re Balcombe:

... The Company is of the view that this decision (of the WSCC) was not in accordance with the Council's own policies and will consult with legal advisors on appeal routes once the Decision is issued in writing.

Brockham

The Group continued with its plan to obtain commercial value from the licence by resuming production from the Portland reservoir. An application to the Environment Agency for permission to re-inject formation water to maintain pressure in that reservoir to gain maximum hydrocarbon recovery was submitted. This included an updated Hydrogeological Risk Assessment report as per our recent submission regarding Balcombe. A Field Development Plan was also submitted to this effect to the Oil & Gas Authority which was approved. The Group believes that, subject to permits being granted, the site would be commercially profitable without any further significant capital expenditure. Recompletion of the BR X4Z well as a Portland producer is also under consideration.

Re Balcombe:

... The Company is of the view that this decision was not in accordance with the Council's own policies and will consult with legal advisors on appeal routes once the Decision is issued in writing.

The Group recorded a loss of GBP2.516m (2019: GBP5.043m). During these difficult economic times, the company has made a conscious effort to cut costs at both corporate and operational levels while still maintaining high level of professionalism and operatorship. This has paid off seeing administrative costs being reduced by GBP1.916m to GBP2.060m (2019: GBP3.976m).

Big reduction in administrative expenses, from 3,976k to 2,060k.

Loss for year reduced from 5,043k to 2,516k.

almost twice as much volume on Aquis (20.5m) as on AIM (11.2m).

This is text which preceded the extract I posted from the RNS of 23/07/20:

Rapid success case monetisation

Turkey, which has a c. 91% oil import dependency, actively encourages its domestic oil sector. The right to produce any commercially viable discovered hydrocarbons is enshrined in Turkish Petroleum law. It is a licensee's obligation to produce such discovered hydrocarbons and the law gives an "explorer" the same right to produce during the 5-year exploration phase as if the Licence were in a production phase.

Monetising a successful oil well in Turkey is therefore potentially rapid and largely in the control of the operator, as the completed well can be put on long-term production directly from a flow test and well completion. Permanent production can therefore be accomplished as soon as practicable, taking months rather than the 3-5 years it takes in the UK onshore.

The Turkish petroleum fiscal regime is also amongst the most globally competitive, giving a licensee a post-tax share of production revenues of around 60.5% (inclusive of a 5% withholding tax for repatriated profits to a foreign parent company). The comparable UK post-tax share is 60%.

Turkish petroleum law also guarantees that any domestically produced oil must be accepted by Turkish refineries and purchased at market price. Crude prices are benchmarked to Arab Medium or Arab Heavy, dependent on oil density/API gravity and are approximately equivalent to or marginally higher than Brent crude, the UK benchmark.

Drilling costs are also forecast to be significantly lower than for a comparable well in the UK. AME's cost estimates for a 1500 m depth well in the Licence are around $3 million gross. The equivalent well in the UK would cost the Company GBP5-6+ million gross.

Any future oil production is therefore expected to be economically robust at current $40/bbl oil prices as front end capital costs per barrel are relatively low and expected operating costs, derived from those at AME's nearby East Sadak field, are forecast to be comparable with UKOG's Horse Hill field operating costs at around $15/bbl. An equivalent production stream in Turkey will therefore pay back far quicker than in the UK. (RNS of 23/07/20)

Can't have an AGM without the annual report.

Release of the annual accounts to 30/09/20 must be very close now.

As per RNS releases Saltfleetby Energy is contributing its security in the Field and allowing its share of revenues in the Field to be applied to service the debt. Angus is however the primary Obligor and is leading the way on documentation although we and our partners are separately represented and endeavour to respond to the Lender’s counsel with a single voice.

In the webinar, GL said he thought final procurement costs might come in within the revised forecast costs. This statement is in line with what he said then:

Our procurement process, since we are not looking at a single turnkey provider, is ongoing and open-ended. In order to attract debt capital, we needed to procure and be able to present definitive options back in the autumn. That has not stopped us from looking to refine and improve individual tenders and for some second hand equipment, availability is a matter of patience and good fortune. To date prices and terms have moved in our favour and we have also improved our understanding of the costs of recertification.

Can the Board update more regularly on this Loan Financing as the delay is causing frustration? Has Alephs 90 day exclusivity period as per 30 November RNS been extended? Given the market sensitivity of the Loan, would I be right in thinking that any significant roadblock would have to be disclosed immediately, so can we put this down to the usual documentation drag? Asked on 14 February 2021

We have given explicit updates via RNS. We cannot update further on this platform without further RNS. We can say that given the sensitivity of the matter, if there were any significant road block then we would be under an obigation to inform the market immediately.

https://www.angusenergy.co.uk/media/investor-questions/