Angus Energy plc has conditionally raised £3 million, via a placing and subscription of 1.5 billion new ordinary shares, at 0.2p per share, to support a restructuring agreement with its lenders.
CREDITORS
Net proceeds will help pay for a fourth well at the Saltfleetby gas field in East Lincolnshire, and the well workover at Brockham in Surrey, to increase oil production.
The company’s creditors comprise Trafigura, royalty holders Aleph Saltfleetby Ltd and Aleph Energy Ltd (5%) and Mercuria Energy Trading S.A (3%), and Forum Energy Services Ltd.
The agreement will settle £2.5m due to the royalty holders in cash and shares, while converting the £2.5m payment, due to 16.21% shareholder Forum, into 1.25 billion shares.
Under an amended existing facility agreement with Trafigura, which is owed some £26m, Angus will make even quarterly repayments, over five years, up to and including 31 March 2031.
The company will also use a ‘cash sweep’ of more than 50% of its revenues, in excess of £2m, to help pay back the loans.
Angus will repay 4% of the interest on the Trafigura loan, for 2025 and the period ending March 2026, with an aggregate 211,064,375 warrants, and grant a further five million warrants.
ISSUED SHARE CAPITAL
The placing raised £1.76 million with institutional and other investors of a total of 880m placing shares.
Angus’ agent and broker Oak Securities will receive warrants over ordinary shares, equal to 6% of the placing shares, subject to shareholder approval.
Subscribers include majority shareholder Kemexon which, as at March 2025 held a 19.67% shareholding in Angus, and who subscribed for 175m shares at £350,000.
Angus’ finance director Carlos Fernandes subscribed for 12.5m shares at £25,000 and chief operating officer Ross Pearson, 12.5m shares for £25,000.
Aleph Commodities Ltd, which has a 4.25% stake, subscribed for 125m shares at £250,000.
The fundraise also included “certain other subscribers”.
The aggregate new shares issue will equal 18.72% of Angus’ enlarged share capital.
Following admission, the company’s total issued share capital will increase from 4,986,893,414 to 8,011,893,414 ordinary shares, each with one vote.
Angus does not hold any ordinary shares in treasury.
Shareholders are expected to vote on the fundraise, restructuring agreement and other matters at a general meeting on 13 July 2026.
The restructuring is conditional on completion of the fundraise.
TURNING POINT
Angus described Saltfleetby as a “long-life, high-quality asset”, with 2P reserves of 21 billion cubic feet and 2C resources of 17 bcf.
A final investment decision on the fourth well is scheduled for the final quarter of 2026, with the spud date expected during Q1 2027 at an estimated cost of £6 million.
The company anticipates funding the majority of the fourth well’s associated expenditure from operating cash flow.
Angus also expects to restart trading on 14 July 2026 as a “more financially secure and operationally attractive onshore oil and gas investment”.
“We are delighted to have completed this restructuring, which enhances the company’s financial position and reflects the strong support of our key stakeholders,” said Mr Fernandes.
“The conversion of liabilities into equity, the crystallisation of the royalty, and the improved terms with Trafigura together create a simpler, stronger and more flexible balance sheet.
“This marks a clear turning point for the company and enables us to focus on delivering our operational programme and to establish long-term value for shareholders.”