RNS: Coiled Tubing now on-site...28 Mar 2023 16:37
(AIM: ANGS) is pleased to announce that, in line with the announcement of 8 March 2023, with the well completed, coiled tubing operations are taking place this week at Saltfleetby and will be immediately followed by a short period of well testing before flowing the well directly into the process facility for export. Accordingly, we now expect first export during the week of 7 April.
In line with that earlier announcement, and the Company's commitment to deliver returns to shareholders through the appreciation of the share price and distributions, the Company will resort to equity finance only to support accretive acquisitions or projects, Angus is pleased to confirm that it has now entered into a GBP 3 million junior debt facility (the "Bridge Facility") to manage costs arising from the extended drilling operations as well as initial studies around the development of natural gas and hydrogen storage at Saltfleetby.
The Bridge Facility provided by the Company's 9.91% shareholder Kemexon Limited, a major commodity trading house, has an initial term of three months, extendable with the payment of a 3% roll fee for a further three months. The Bridge Facility is priced at SONIA + 15% and commits the Company to issue 150 million warrants, struck at the previous placement level of 1.65p/share.
Revenues from the existing operations and the sidetrack are expected to repay both the senior and junior facilities. The Company has the option to repay the junior loan in shares at a 25% discount to the 30 day VWAP, subject to a floor at 1p and this same option is also available to the lender but only in the event of default.
Furthermore, through a separate agreement, Aleph Commodities Limited ("ACL") is acting as arranger of the Bridge Facility (together the "Transaction"). ACL are entitled to an upfront 5% arrangement fee and a further 3% break fee should the Bridge Facility not be rolled beyond its initial three month term. The arrangement fee will be satisfied in shares at the 30 day VWAP of 1.36379 pence prior to the date of issue of the facility; accordingly Angus will issue and allot 10,998,719 shares in respect of the initial arrangement fee (the "Fee Shares") following its AGM scheduled for 31 March 2023. The 3% break fee would be settled in shares at the 30 day VWAP ahead of the repayment date.
Noting that ACL and its associates are Substantial Shareholders in the Company, and noting Kemexon Limited's own shareholding, the Transaction is a Related Party Transaction under AIM Rule 13. Accordingly, the Board, none of whose members are involved in the Transaction, having consulted with the Company's nominated adviser, Beaumont Cornish Limited, consider the terms of the Transaction to be fair and reasonable insofar as shareholders are concerned. In taking this view the Board has carefully considered these fees and considers them to be fair and reasonable and comparable with past offerings by other service providers.
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