Angus Energy pl has agreed non-binding terms with Trafigura to restructure its debt in order to provide a “stable financial platform to support future operations”.
ACQUISITION
The terms are subject to final agreements on new covenants, revised terms with the overriding royalty interest holders, and deferred payment owed to Forum Energy Services Ltd.
The company’s principal asset is the Saltfleetby gas project, onshore East Lincolnshire.
“By consolidating and refinancing existing debt facilities, the company will be better positioned to raise new capital in support of organic growth, increased production, and potential M&A activity,” said Angus.
“The company is benefitting from higher oil and gas prices and continues to carefully manage its working capital position in conjunction with its lenders.”
Angus is also progressing its due diligence on the possible purchase of producing assets in the Gulf of America (Gulf of Mexico).
The company added it would decide on the transaction in the coming weeks.