The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
From 2 weeks ago ..
We continue detailed discusssions on the refinancing of Angus’ debt with the intention of announcing definitive progress at the earliest opportunity. The facility size is driven both by anticipated field cashflows and the size of the debt to be refinanced. Clearly equitising the £3 million bridge facility has improved the terms of the debt we are seeking and allows us more latitude in determining the final amount we are seeking.
For sure they’re in great shape now. Significant reduction in costs, gas price to remain solid at c£1.20 for 2024, flows being optimised, announcement on storage partner soon, oil production coming, zero tax for the foreseeable … will look a very attractive proposition for lenders, and suitors.
Expect the terms will be attractive and for sure there will be an immediate rerate. RH is very bullish about it being cheap. Look at the CPR valuation to see the clear upside. Exciting few weeks ahead for holders.
I think pipeline connection will be announced this week and refinancing late this week or early next. CPR was the only missing piece of the jigsaw for lender reassurance. Terms should be really good given how positive a position ANGS are now in financially.
The share price has been underperforming largely because of uncertainty around the short-term debt which the Company took on earlier this year to fund a shortfall in our hedge payments in 2022 and cost overruns on the drilling of the B7 sidetrack. We announced last week the conversion of £3 million of that debt into equity and are actively working to refinance the remaining £6 million bridge loan before the end of this year. We expect to update the market on our progress with the refinance soon. We believe the successful refinancing of Angus’s debt, combined with the strong cash generation potential of Saltfleetby Field and the long-term potential for gas storage will see a re-rating in the share price.