Angus Energy plc has signed a tentative deal to diversify and expand its footprint to the Gulf of Mexico (Gulf of America) in a reverse takeover.
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The non-binding agreement for the purchase a “group of producing assets” results in the company’s shares’ suspension from trading under AIM rules.
Angus said that the potential acquisition would be a “major strategic development” with a “significant increase in reserves, production and positive cash flow”.
“The transaction diversifies Angus away from the challenging UK energy sector into assets in a highly supportive oil and gas jurisdiction, with stable and reliable production and low decline,” added the company.
Due diligence, funding and shareholder approval among other matters are needed before a binding agreement is secured.
The group’s main asset is the Saltfleetby gas project onshore East Lincolnshire, for which it received a £20 million loan in February 2024 from Trafigura Group PTE Ltd.
The first repayment of £1.25m was deferred due to “production variability” during the first quarter of the 2025 before installation of a booster compressor.
Trafigura has granted the company an extension of the first repayment until 26 May 2025, while talks continue on “resculpting” the repayment schedule.
Angus said it remained confident in the reserves and potential of the Saltfleetby field and is exploring options to increase production through workovers and new drilling.
For the year ended 30 September 2024, the group posted revenue of £21.802m (2023: £28.208m) from oil and gas production at Saltfleetby and Brockham oil field in Surrey.
Losses totalled £4.301m, including an impairment of £4.770m for Brockam following “lower than expected production rates”.